Budget Update: NO IMPACT TO DIRECT SERVICES
Governor Lynch announced budget cuts across state government impacting both the current fiscal year which ends June 30, 2010 and state fiscal year (SFY) 2011 which begins July 1, 2010.
Governor Lynch proposed, and the joint fiscal committee approved, a $25 million reduction for the current fiscal year. These cuts included $326,000 of unencumbered funds, those not promised through contracts, controlled by the Governor’s Commission on Alcohol and Drug Abuse Prevention, Intervention, and Treatment (Governor’s Commission). This funding cut was not included in the proposed cuts released by DHHS the week before.
On Thursday, April 15th, the members of the NH House and Senate finance committees (the joint fiscal committee) heard testimony on the cuts for SFY 2011. They are contained in senate bill (SB) 450 and its amendment. The bill cuts the Alcohol Prevention and Treatment fund by $53,000 for treatment and $23,000 for prevention. This is a 2% cut which mirrors reductions elsewhere in DHHS. Joe Harding, Administrator of the Bureau of Drug and Alcohol Services at DHHS, later stated publicly that no direct services would be impacted by these proposed cuts. It is therefore clear that should the existing budget reductions pass as proposed direct service contracts will not be affected by this round of cuts!
There is, however, a pressing concern in the language of the amendment. Sections 70-72 of the amendment to SB 450 are revisions to both the law establishing the Alcohol Prevention and Treatment Fund and the law establishing the Governor’s Commission. This amendment will strip the authority of the Governor’s Commission, making it advisory to DHHS and will place the authorization for disbursement of the Alcohol Prevention and Treatment fund within DHHS. This is a dramatic shift in policy which New Futures opposed through written and oral testimony at Thursday’s hearing.
Our opposition to these changes includes the fact that this is a major policy change not attached to any budgetary savings. Therefore it is inappropriate for a budget-related bill being heard before the finance committees.
As of 5:00pm May 2nd the committee decided to remove the language regarding the Governor’s Commission changes and accept the cut of $76,000. The house budget committee vote is on Thursday and we are hopeful that these recommendations will be approved.
Stay tuned for further updates as these recommendations travel to the full House for vote and then to committee of conference with the Senate.