Governor's budget proposals 'stun' Charities head

Behind a desk awash in paperwork, Sister Maureen Joyce, RSM, has been gathering analyses of this year's executive budget, released Jan. 18 by Gov. George Pataki.

"As director of [Albany diocesan] Catholic Charities, I'm not even sure of our allocation or the status of some of our contracts from last year; and now we're fast-forwarding to this year," she remarked, referring to the 2004-'05 state budget. Passed in August, it was the latest in state history.

Understanding the Governor's budget proposal for this fiscal year is more critical than ever, say Catholic officials, since he is asking for drastic cuts in health care that already have many organizations up in arms on behalf of the vulnerable populations they serve.

Among those organizations are Catholic Charities and the New York State Catholic Conference, which speaks for the state's bishops on issues of concern to the Church.

Both groups are readying themselves for efforts like testifying before the State Legislature and participating in a Public Policy Day in March to lobby lawmakers.

"I was stunned that in [Gov. Pataki's] State of the State address, the word 'poor' was not mentioned at all," Sister Maureen said. "And in the budget itself, I haven't seen any new initiatives for the poor or even sustaining the poor at the same level."

HEALTH CARE

"The biggest concern is clearly on the healthcare side," said Dennis Poust, director of communications for the Catholic Conference.

The Governor's budget caps county Medicaid increases and cuts services for Medicaid recipients, including visits to psychologists, audiologists, podiatrists and dentists.

"We understand the Medicaid program is an expensive one, but access to health care is one of the most fundamental human rights there is, and the government does have an obligation to provide" it, Mr. Poust stated.

While dental clinics would supposedly be available, he said, restricting people from seeing other dentists is not practical. He asked: "Are the clinics convenient? Can people get to them? Can they get the same quality of care as [from] a private dentist?"

Sister Maureen complained that the Governor's budget has "tentacles": Associated with the Medicaid cuts, for example, are proposals to cut Family Health Plus, the state's health insurance program for the working poor.

She explained that those who qualify for Family Health Plus are just over the eligibility requirements for Medicaid, and "dismantling" Family Health Plus would make such lower-income families progressively more fragile.

"I believe welfare needed to be reformed," Sister Maureen noted, citing Gov. Pataki's boast that a million people have been dropped from the state's welfare rolls in the past decade. "But there won't be continued success, because people won't be given support. Family Health Plus was part of that support."

According to Mr. Poust, the overarching goal of the budget ought to be reducing poverty. He advocated for a tracking system to determine whether former welfare recipients are employed and out of poverty.

Of particular concern to both officials is a proposed $250 co-payment for hospital visits by Family Health Plus members. That might as well be $2,500 to a person who has no money to spare, said Sister Maureen.

Although she said she understood that counties needed some relief from the skyrocketing costs of Medicaid -- counties are currently responsible for funding a quarter of the $44 billion program -- she added that, in her experience, the poor will not seek health care if they have to choose between that and food or shelter.

Mr. Poust feared budget cuts would be made to mental health services currently provided through Family Health Plus.

"That's penny-wise and pound-foolish," he said. "It leads to other ills that outweigh the cost of paying for the services to begin with. [Without these services,] people may be unable to work; there's a potential increase in homelessness, violent crime and suicide."

Sister Maureen worries that Gov. Pataki will ask the federal government for a block grant to cover Medicaid. Block grants, she said, are "difficult to work with" because they usually decrease funding levels and allow counties to determine which services are important -- for instance, preventive services are often cut.

To further trim the state's healthcare budget, Gov. Pataki has proposed boosting fees paid by hospitals and nursing homes, and even closing some healthcare institutions. Sister Maureen said the fees are essentially a tax that hospitals can ill afford to pay.

"Many operate on razor-thin margins," Mr. Poust agreed. "As expenses grow, reimbursements for services will remain stagnant -- and seven-tenths of one percent of all revenue brought in would have to be returned to the state. Even if Catholic hospitals survive, could they take on the added burden [if others close]?"

One plus that Catholic officials found in the Governor's healthcare budget was a proposal for increased homecare alternatives for senior citizens.

"We have been pushing for that for some time," Mr. Poust said. "It's much less costly than nursing home care, and it's beneficial for the elderly to remain in their communities."

However, Sister Maureen noted that more reimbursement is needed for homecare agencies, so that elderly persons who do stay in their homes can get help with housekeeping, grocery shopping and mobile meals.

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SUBSTANCE ABUSE

The Catholic officials applauded Gov. Pataki's plan to increase substance abuse treatment as an alternative to incarceration.

Sister Maureen called it an effort that "makes sense," since addicts "need rehabilitation, where they can kick the habit and lead a productive life."

She quoted Rev. Peter Young, a diocesan priest who helps addicts and the formerly incarcerated through Peter Young Housing, Industries and Treatment (PYHIT): "'We're creating taxpayers here.'"

Mr. Poust hoped Gov. Pataki would take his plan a step further, reforming the Rockefeller-era drug sentencing laws by giving judges the discretion to sentence addicts to treatment rather than prison. Both Senate and Assembly leaders are in favor of such measures, he said.

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CASINO GAMBLING

Mr. Poust and Sister Maureen expressed major concern that the Governor's budget relies on the establishment of eight new video lottery terminal (VLT) casinos across the state to fund its initiatives.

By doing so, "we're really saying the new revenue [source] is gambling," remarked Sister Maureen.

"We see the expansion of gambling as a continuing problem in the state, and a very troubling one," Mr. Poust stated. "The Governor seems to be addicted to gambling as a revenue stream; it's really a tax on the poor."

Studies show that lower-income persons more often turn to casinos, hoping for a quick fix to their problems, he explained, which "destroys lives -- and we don't think the state should be in the business of destroying lives."

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EDUCATION

As for education, Mr. Poust said that Catholic schools are "basically in a holding pattern" in terms of the amount of funding they receive.

The Catholic Conference plans to continue lobbying efforts for parental rights in choosing children's schools, and for funding increases that benefit all schools, public and private.

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ENVIRONMENT

Though environmentalists have been pleased at a proposed 20 percent increase to the Environmental Protection Fund, Mr. Poust said that there are currently no major issues of concern to the Church in this area -- particularly since the New York State Superfund to clean up toxic waste has been fully funded.

"It's really a matter of maintaining it right now," he said.

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CONCLUSION

Although the Catholic officials found many items of concern in the executive budget, Mr. Poust believes that the Governor's proposals are simply a "starting point," and that negotiations will take place among state lawmakers.

Since so many institutions and organizations have protested the proposed budget cuts, Sister Maureen said she was waiting for the "big players" -- among them, the Healthcare Association of New York State (HANYS), the New York Association of Homes and Services for the Aging, hospitals, nursing homes and unions -- to take up the cause.

"I don't think the Governor's budget, as presented, is going to go through," she said with confidence. "There's going to be a massive lobbying effort [against the cuts]."

She also said she found it ironic that Gov. Pataki proposed tax breaks for the wealthy, noting: "The assumption is that people who are more affluent deserve a tax break and the poor need their health care curtailed."

Mr. Poust hoped that, regardless of what negotiations take place, the budget is completed "in a timely fashion."

(Budget issues aren't the only ones of concern to the Church. On Jan. 26, Bishop Howard J. Hubbard testified against capital punishment at a joint session of the State Legislature. The death penalty was ruled unconstitutional in New York State in June, and many observers believe there is a good chance this year of permanently abolishing it.)

Sees 'Wheels' coming off budget

"We just got word that our Wheels to Work program is probably going to be eliminated," said Sister Maureen Joyce, scanning a budget analysis by a Catholic Charities employee. "To our knowledge, it's not in the [executive] budget."

Wheels to Work provides used, donated vehicles for low-income persons.

"We served 185 families [in 2004], and 85 percent said their lives had changed for the better as a result of that. They were able to get jobs that were not necessarily on a bus route," Sister Maureen stated. "And we have 250 people waiting for cars."

A state budget that doesn't provide for the poor through such programs, she said, is taking away the opportunity for former welfare recipients to find meaningful, long-term employment; and "if people don't have support, they won't be able to stay in those jobs." (KB)

(1/27/05)