WASHINGTON, D.C.—A new National Governors’ Association (NGA) State Budget Update warns that all states are considering another round of budget cuts before fiscal 2009 concludes on June 30.
The new May 2009 NGA State Budget Update, available at www.nga.org, states, “While the national economy has begun to show some encouraging signs, such as the recent gains in the stock market and a rise in pending home sales, state revenues continue to falter. Historically, state revenues recover more slowly than the national economy as a whole.
“According to data released by the Rockefeller Institute of Government, state revenues declined by 4% in the fourth quarter, with personal income tax declining 1.1% and sales tax declining 6.1%. Preliminary first quarter collections are even bleaker, with 42 states reporting estimated January and February declines of 12% … Numerous states reported that they are seeing declines of up to 40% in estimated payments. The stark declines in current revenues are forcing states from all regions to consider another round of budget cuts before fiscal 2009 concludes on June 30.”
With the NGA’s report, national long-term care leaders are hoping these new circumstance will help them urge President Obama to rethink a potential $1.05 billion in cuts to Medicare Part A.
“As the administration and Congress proceed to craft the FY 2010 federal budget, it is essential for policymakers not to view federal Medicare and state Medicaid funding policies in isolation,” warned Alan G. Rosenbloom, president of the Alliance for Quality Nursing Home Care. “There is no doubt that the combination of cuts to both programs will squeeze facilities in a manner very harmful to seniors’ care needs and the local caregiver jobs base.”
This comes at a time when the long term care industry is already facing challenges due to the economic recession. A recent study of proprietary nursing homes by Dobson DaVanzo & Associates, LLC, found that "while there may be vacant positions that could be filled, one-third of our respondents spoke of having to freeze jobs in their facilities and forgo filling these positions." Wages for current employees were also not increasing as a result of the economy, the study found.
Continue the conversation below by posting comments, listing related resources, and linking to associated events.
|
