FY2019 Budget Includes Safety Net Funding, Maintains CMO and Direct Service Provider Increases
July 2, 2018
Governor Phil Murphy signed a FY2019 budget that had been agreed
to with the Legislature on Saturday, narrowly avoiding a
government shutdown. The budget represents a 4.2% spending
increase over FY2018.
As we reported previously, sales and income taxes were major
issues of contention between the Governor and Legislature. While
the final budget does not include a sales tax increase, it does
include a "millionaire's tax", though only on individuals who
earn $5 million and more, a higher starting point than the
Governor had wanted. The tax is expected to raise an additional
$280 million in annual revenue. Corporate income taxes are also
being raised, from 9% to 11.5%, on businesses earning more than
$1 million for the next two years, after which time the tax will
be lowered to 10.5%. This surcharge is expected to raise $425
million for FY2019.
While major differences existed over revenue streams, every
spending item that the Legislature had added in their budget bill
was maintained by Governor Murphy. Among these was the
Legislature's restoration of funding to Care Management
Organizations (CMO) to allow them to maintain their FY2018 per
child/per month rate of $775. CMO funding stands at $116.641
million, an increase over FY2018's adjusted appropriation of
$113.986 million. Both Mobile Response and Stabilization Services
(MRSS) and Intensive In-Home Behavioral Assistance (IIH), which
had been increased in the Governor's proposed budget, received
further increases in the Legislature's final budget bill. MRSS,
funded last year at $39.084 million, is now funded at $44.532
million, and IIH is funded at $135.995 million.
Also of great significance is the $500,000 safety net funding for
programs that transitioned to fee-for-service (FFS). While this
is clearly inadequate to cover the deficits providers are facing
while waiting for the independent rate study required by the FFS
oversight bill passed last year, NJAMHAA has been informed that
the process has begun to draft a supplemental bill for FY2019
that would increase this budget line. NJAMHAA's message has
resonated with the Legislature and Governor's office and we are
pleased to have a presence in the budget that we can build upon;
the FFS safety net funding represents the only increase made by
the Legislature to the Division of Mental Health and Addiction
Services budget. "This is exciting news as it sets a precedent
for additional safety net funding in future budgets. Even more
promising is that a bill for supplemental funds is being
developed," said Debra L. Wentz, PhD, President and CEO of
NJAMHAA.
Other Legislative increases in the budget that Gov. Murphy let
stand include:
? $20 million to raise wages for direct support professionals who
provide children's behavioral health services or assist children
or adults with intellectual or developmental disabilities. Funds
going through the Department of Human Services will be processed
via rate increases; funds going to the Department of Children and
Families and the Department of Labor may be allocated via
contract modifications or rate increases.
- $5 million for sheltered workshops that enable people with
developmental disabilities to work in supervised environments
- $5 million for Child Advocacy Centers that support victims of
child abuse
- $8 million to support prisoner re-entry services that help
reduce recidivism across the state
- $1 million for an autism services pilot program
- $500,000 for Camden's Housing First pilot program
- $400,000 for the New Jersey Center for Tourette Syndrome and
Associated Disorders
In addition, the final budget increases charity care by $10
million to a total of $262 million and provides $1.5 million to
support accountable care organizations providing intensive
management of high utilization Medicaid patients.
Several other increases that had been proposed in the Governor's
initial budget were not affected during the budget negotiations
and remain in place. They include the Division of Disability
Supports Program - Individual and Family Support Services
increased to $71.103 from $54.426 million and the Supports
Program - Employment and Day Services increased to $131.456
million from $100.892 million.
Also not affected were several items that had received flat
funding in the Governor's budget. They include: Graduate Medical
Education ($218 million) and the Delivery System Reform Incentive
Payment (DSRIP) funding ($166 million) and the Substance Use
Disorder Initiatives (SAI) at $23.518 million saw no change from
FY2018.