Senate budget proposal cuts $254 million

Update:

On Friday, February 4th, the Senate passed its early action budget off of the Senate floor with a 38 to 9 vote. The Senate plan makes $255 million in spending reductions and $122 million in fund transfers. The House and Senate must now work together to reconcile differences between the two budgets. 

Original post, February 3, 2011:

The Senate’s version of an early-action budget proposal cuts $254 million in the current biennium, which ends June 30, 2011. This is $30 million more in cuts than the budget passed by the House. The Senate takes a different approach than the House when making reductions to education and opportunity, healthy people and environment, and economic security.

Economic Security

Contrary to the House’s proposal, the Senate would eliminate cash assistance (a $20 million cut) for 28,000 people who are unable to work due to a disability. Instead, it would allocate $2 million for housing and other services. The absence of cash assistance means that these individuals will lose their sole source of income.

Healthy People and Environment

• While health care for many recipients of the Basic Health Plan is preserved, coverage would be eliminated for an estimated 12,000 people who would not qualify under tighter eligibility requirements.

• Eligibility changes in Apple Health for Kids would result in the loss of coverage for 458 kids. Additionally, health coverage would be restricted to those already enrolled, stalling the state’s commitment to cover all kids with health insurance.

• Funding is preserved for medical interpreters.

• Seniors and people with developmental disabilities will continue to receive services through the through the Adult Day Health program such as supervision, therapy, nutrition, and medical and physical care.

• While the Senate preserves housing and support for youth, $800,000 is reduced from intervention services which prevent kids from entering the foster care system. 
  

Education and Opportunity

• While funding is still reduced for class-size reductions for students in Kindergarten through Fourth grade, the Senate reduction is 40% less than the House.

• In higher education, $25 million in tuition funding through the State Need Grant is shifted towards financial aid for low-income students.

• Wage increases and training for child care workers through the Career and Wage ladder is eliminated, jeopardizing retention rates among quality staff.

The Senate proposal represents yet another step in a series of budget decisions. Despite the drastic cuts in the proposal, a $200 million shortfall still remains for the current biennium. The Senate is expected to take action to move this budget in the next few days.