Vermont Council of

Developmental and Mental Health Services

 Legislative Update for May 12, 2009

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Legislature Completes Work and Prepares for a Veto by the Governor

The legislature was unable to come to agreement with Governor Douglas on their budget and revenue package.  As a result they went ahead and approved a budget bill with $26.5 million in general fund reductions, general fund transfers to the education fund reduced by $18 million, state revenues increase of $26.1 million and limited use of the caseload reserves.  Governor Douglas would like the legislature to make adjustments to the Bill during a special session that would address his concerns and lead to his signature.

The Legislature has said that if the Governor vetoes the bill then he should propose an alternative. There is still some possibility that the Legislature could override a veto by the Governor.  The Senate could easily override a veto.  However, the House vote was 91 – 52, just short of the 2/3^rd majority required to override a veto. There are 3 progressives, 2 independents and 2 democrats who voted against the bill and 3 democrats were absent. The Republican leader says there aren’t enough votes to override the veto, but the Speaker of the House does not agree.

A number of decisions made by the budget conferees will impact our service system.

• Flexible Family Funding was cut by $75,800 in general funds/$250,000 in total funds this will reduce family allocations from $1,300 to $1,000.  The developmental services graduate fund was cut by $290,882 in general fund/$959,373 in total funds (about ½ of the appropriation). 
• The Secretary of Human Services was given discretion on cutting provider grants by $705,000 in general funds with specific criteria set by the legislature (see May 6th update).
• OVHA and DCF reimbursement rates will go down by 2% (see Update from February 10^th for the list of Designated Agency programs impacted).

• The Chittenden County Substance Abuse pilot was appropriated $750,000 in general funds of which $250,000 will be allocated by the Secretary from the existing AHS appropriation, the other $500,000 is new.
• The final budget did not include the proposal to reduce Vermont State Hospital funding by 2% or to redirect those funds to the community mental health appropriation. 
• The Blueprint received the extra $1 million to expand statewide. The budget bill says they’ve appropriated $5,051,400, and “$1,300,000 of the funds shall be used to provide incentive grants and stipends to physician practices and hospitals participating in the pilot projects…”  OVHA is sorting out the details and determining the legislative intent.

Capital Bill and Futures

The Capital Bill as passed by the Legislature included $250,000 for planning the Rutland Regional Medical Center (RRMC) inpatient unit, $500,000 for planning the secure residential facility and only $200,000 for the Vermont State Hospital (VSH) safety improvements.  The amount of money for the hospital renovations is below the amount that the State says is needed to achieve the changes required by CMS to improve the safety of the treatment mall. Of additional concern are the most recent findings by CMS of newly identified problems in the facility that will require resources to correct and achieve certification.

The Capital Bill calls for the development of a master plan to replace the acute care functions of VSH prior to the submission of the phase II certification application for the secure residential facility.  The secure residential facility shall be located in Waterbury.  At the time of filing the CON letter of intent to BISCHA, AHS is required to describe the secure residential program to CMS to determine if federal funding will be available.  CMS’s response will then be reviewed by relevant legislative committees.

The Department of Mental Health must submit a report describing the financial arrangement for the RRMC and the results of the accounting and financial analysis to the mental health oversight committee and the joint fiscal committee.  The Joint Fiscal Office will study the report and report to legislative committees on its analysis.  Then the two committees shall have until November 1, 2009 to object to the financing proposal.  If they do so, the department shall discontinue planning with RRMC. 

The Commissioner of Mental Health has been instructed to design a special designation program for hospitals that operate an intensive acute or specialized acute inpatient programs and submit enabling legislation for the 2010 legislature’s consideration. The designation will be similar to that used for community-based designated agencies and include program standards and payment provisions.

Bills that Did Not Pass the Legislature

Each year the majority of proposed legislation does not work its way through the legislature.  This year potential bills on the following topics did not complete the process:

• H. 184 on consent by minors to hospitalization
• H. 400 on positive behavioral supports in schools
• H. 133 on eliminating the public oversight commission
• S. 141 to allowed access to Success Beyond Six services to be provided by non -designated agencies
• H. 151 on substitute medical decision making

For more information or to take action:

·        Legislative home page: http://www.leg.state.vt.us

·        Sergeant-at-Arms Office: (802) 828-2228 or (800) 322-5616

·        State House fax (to reach any member): (802) 828-2424

·        State House mailing address (to reach any member):     

                                    Your Legislator

                                    State House

                                    115 State Street, Drawer 33

                                    Montpelier, VT  05633-5501

·        Email, email, home address and phone: Legislators' email addresses and home contacts may be found on the Legislature home page at http://www.leg.state.vt.us

·        Governor Jim Douglas (802) 649-6825 or http://www.vermont.gov/governo

The purpose of the legislative update is to inform individuals who are interested in developmental, mental health and substance abuse services about legislative advocacy, policy development and activities that occur in the State Legislature. The Vermont

Council is a non-profit trade association whose membership consists of 16 designated developmental and mental health agencies.