How the Budget Bills Affect
People with Disabilities
Distributed by
April 2011
2011-2013 State Budget
Mixed News for Medicaid
• 1 in 5 Wisconsinites use Medicaid in some form;
Medicaid accounts for 10% of state spending.
• $594M new funding for Medicaid Budget
• Currently no across the board rate cuts
• No plans for reductions in optional services (yet)
– Such as Personal Care and Prescription Drugs
• No plans to change coverage (yet)
• The same number of children’s waiver slots will
continue
2011-2013 State Budget
Concerns about Medicaid
• $500 million in unspecified savings needs to be
found from Medicaid (and about $750 to $800
million federal match), relative to a cost-to-continue
budget
• $96 million from centralizing, automating, and
privatizing the “income maintenance” – these
services will no longer be at the county level
2011-2013 State Budget
Concerns about the Medicaid
Decision-Making Process
• Potentially limits public input about proposed
Medicaid changes
• If Wisconsin’s proposed changes aren’t federally
approved, possibly up to 70,000 people may lose
coverage on BadgerCare (133% over Federal
Poverty Level, FPL)
2011-2013 State Budget
Changes DHS is Considering
• Increased premiums and co-pays in BadgerCare
• Changing standards for state residence
• Revising retroactive eligibility & eliminating grace
periods
• Allowing providers to deny care or services if an
enrollee is unable to share costs
• Establishing different benefits or packages for
different recipients
• Requiring enrollees to participate in managed care
• Restricting or eliminating presumptive eligibility
• Restricting eligibility of non-citizens
• More frequent review of eligibility
2011-2013 State Budget
Effects on Family Care
A freeze on long term care programs like Family Care
and IRIS means creating new waiting lists for
services in counties that ended waiting lists years
ago.
2011-2013 State Budget
Effects on Family Care (continued)
• Family Care, Partnership, PACE and IRIS are all
frozen at the number of participants in the program
in June 2011
– Enrolled participants can still switch between
programs
• ADRCs planned to be statewide June 30, 2013
• Results of the Family Care audit may determine the
future of Family Care
• Family Care/IRIS independent
Advocacy/Ombudsman Program continued with no
cuts
• Proposed increase in participants enrolled in SelfDirected Support options, including IRIS
2011-2013 State Budget
Effects on Senior Care
• $15 million reduction for SeniorCare
• People enrolled in Senior Care will also be required
to enroll in Medicare Part D
• The effects could vary based on individual situations
• DHS states that Senior Care only (without Medicare
Part D) could result in twice the cost for co-pays and
cost sharing
2011-2013 State Budget
Effects on Mental Health
• Most community-based services and supports for
the public mental health system are county funded.
• Decrease in funding to counties by $36.5M could
puts local mental health programming at significant
risk
– Community Support Program, Comprehensive
Community Services, and Community Recovery
Services
2011-2013 State Budget
Effects on Education
• $800 million cut in general school aids; K-12 funding
makes up 40% of state spending
• Children with disabilities are general education
students first; large cuts to education will result in
big changes for all students regardless of disability
• Cuts to general school aids will make it very difficult
for schools to pay for special education services
• Students with disabilities are more likely to spend
time in segregated settings as general education
classes become larger
• Estimated average cut: $750/child
2011-2013 State Budget
Effects on Education (continued)
• No increase for special education funding
– Resulting in reduction in reimbursement rates for
Special Education services (rate will change from
27.9%-24.5%)
• Reduces revenue cap by 5.5%
• $40 Million increase in choice, charter and open
enrollment options. No income requirements
– Students with disabilities don’t typically benefit
from these options.
• State funding that supplements federal Head Start in
Wisconsin would continue, but with a 10% cut.
2011-2013 State Budget
Effects on Transportation
• Moves public transportation to the shrinking general
fund in the budget – making public transit compete
with other programs for funding
• Reduces transportation aids by 10% - will result in
big cuts in accessible transportation for those who
rely on it
• Loss of $44 million in federal transport aid
• Specialized Transportation (85.21) is level-funded
• Implementation of a statewide transportation broker
• $350 Million increase for highways/roads
2011-2013 State Budget
Other Budget Effects
• $20/person/month cut in maximum Wisconsin
Works payment to low income families
• $74 million in cuts to the state Earned Income
Tax Credit (EITC) for low-income working
families
• Eliminates all state family planning funding
– This is the main access to health care for
many low-income women with disabilities
• Eliminates the Wisconsin Quality Homecare
Authority
2011-2013 State Budget
Considering Taxes
• Wisconsin taxes are average in the U.S.
• The Governor proposed a NO TAX Budget.
Some receive tax cuts
Corporations
$115 million
Health Savings Accts. $49 million
Investors
$36 million
TOTAL
$200 million less revenue
Places where the budget puts additional money
Road builders $350+ million
Private schools $40 million
2011-2013 State Budget
Taking a Balanced Approach
• A Wisconsin Policy Research Institute Poll shows 72% favor
income taxes on those above $150,00/year
• 67% believe revenue should be part of a balanced budget
solution
Examples of revenue generators:
• Collect tax on investment profits - $140 million
• Surtax on incomes over $250,000 - $168 million
• Sales tax on business and professional services - $322 million
• No cuts to business and investor taxes - $176 million
• Collect uncollected taxes - $1.2 billion per year
2011-2013 State Budget
Possible Recommendations
• Reduce Administrative costs in Family
Care/IRIS/Partnership
• Reduce unnecessary institutionalization
• Streamline program eligibility for children's services
• Increase investment in recovery oriented consumer run
services and peer support
• Better coordination between DHS, DPI, DVR for
transition age youth
• Increase use of self-directed services and supports
• Target education investments
• Consider revenue generators – a balanced approach.
• Increase investment in recovery-oriented consumer-run
mental health services and the certified Peer Specialist
Program
2011-2013 State Budget
What You Can Do to
Make Your Voice Heard
1. Develop a relationship with your legislator/
policymakers. Share your story and your
concerns.
2. Write letters to the editor.
3. Talk to your friends, family and co-workers;
testify at hearings.
4. Join public actions or coalitions.
5. Remember to Vote!
2011-2013 State Budget
Take Action!
To continue to have your voices heard, stay up-to-date
and get informed about issues that affect you and
your family, visit:
• http://www.dawninfo.org/co/sc/survival_coalition.cfm
•
http://www.il-wisconsin.net/advocacy/
•
The WI Board for People with Developmental
Disabilities’ Facebook page (www.facebook.com)
•
www.disabilityrightswi.org
2011-2013 State Budget
Survival Co-Chairs
•
Lynn Breedlove, Disability Rights Wisconsin:
lynnb@drwi.org
•
Maureen Ryan, Wisconsin Coalition of
Independent Living Centers: moryan@charter.net
•
Beth Swedeen, Wisconsin Board for People with
Developmental Disabilities:
beth.swedeen@wisconsin.gov