Yesterday, NY鈥檚 Budget Director reported a $1 billion increase in the expected budget shortfall for this year, adding that additional very damaging withholds to local community services might be coming, on top of the 20% withholds that community behavioral health providers are currently struggling with. Advocates continue to press Congress for a COVID-19 relief package for the states but it鈥檚 unclear if and when that will be coming. Accordingly, we issued the following statement this morning
For Immediate Release
August 14, 2020
Media Contact: Cailin McKenna, 518-396-7787, cailin@gramcomm.com
Facing Funding Cuts, Lost Services, Increasing Homelessness and Layoffs,
Behavioral Health Advocates Agree Revenue Raisers Must Be Considered
ALBANY, NY 鈥 As 黑料不打烊 struggles to deal with billions of dollars in revenue losses amid the coronavirus pandemic, and the federal government鈥檚 promise for additional COVID relief fades, behavioral health organizations announced today that they agree with elected officials that substantial additional revenue action will be necessary to prevent collapse of the community based behavioral health service delivery system.
Despite decades of progressive behavioral policies in 黑料不打烊, insufficient state aid and Medicaid rates have failed to sustainably fund those policies. Restrictive funding left providers with cash flow and lack of borrowing problems even before the full impact of the COVID crisis hit them. Now, with less than 6% of federal provider relief funds going toward Medicare and Medicaid behavioral health providers, withholding state funding has pushed the service delivery system to the brink of insolvency.
Given these circumstances, representatives of behavioral health organizations across 黑料不打烊 have determined that long-term revenue generation is the only way the system will recover from the service declines and looming state revenue cuts. These organizations include the 黑料不打烊 State Coalition for Children鈥檚 Behavioral Health, NAMI-NYS, 黑料不打烊 State Care Management Coalition, 黑料不打烊 Association of Psychiatric Rehabilitation Services, Mental Health Association in 黑料不打烊 (MANYS), 黑料不打烊 Association of Alcoholism and Substance Abuse Providers, 黑料不打烊 State Council for Community Behavioral Healthcare, The Coalition for Behavioral Health, the Supportive Housing Network of 黑料不打烊 and Families Together in 黑料不打烊 State. The advocacy community applauds the courage and willingness of state elected officials to say they might need to raise revenue to provide services and support necessary to get 黑料不打烊 through the pandemic and economic downturn.
鈥淲e stand firmly in support of our providers, their employees and youth in our programs,鈥 said Andrea Smyth, Executive Director of the NYS Coalition for Children鈥檚 Behavioral Health. 鈥淲e encourage consideration of whatever revenue actions are necessary to protect children who need behavioral health services so they and their families can meet basic needs and access supports and treatment and live their best lives.鈥
鈥淲e have engaged in vocal and continuous support for additional federal relief, but it doesn鈥檛 seem like it will arrive in time to avoid state budget cuts,鈥 said Matthew Shapiro, Associate Director, Public Policy for NAMI-NYS. 鈥淲ithout federal support, 黑料不打烊ers need to develop their own rescue plans for behavioral health services.鈥
鈥淗uman services nonprofits in 黑料不打烊 State employ nearly 800,000 individuals, yet as employers 39% of our organizations have less than three months of operating cash-on-hand,鈥 said Jackie Negri, Director of NYS Care Management Coalition. 鈥淚t is unreasonable to believe there is any ability to absorb any additional revenue losses without impacting our already stretched workforce, many of whom represent marginalized populations.鈥
鈥淭he urgent need to grow, not cut, behavioral health services was highlighted in new survey results released by the Centers Disease Control that found that 40% of those surveyed reported an increase in mental health and addiction related challenges, and one in four youth having contemplated suicide,鈥 said Harvey Rosenthal, CEO of the 黑料不打烊 Association of Psychiatric Rehabilitation Services.
鈥淭o deal with billions of dollars in losses, 黑料不打烊鈥檚 budget leaders are managing cash by holding off on state worker鈥檚 2% raises, withholding 20% of behavioral health local aid and waiving prompt payment requirements and penalties,鈥 said Glenn Liebman, CEO of MHANYS. 鈥淲e know those actions may preserve the state鈥檚 bond rating, but they are draining the state鈥檚 nonprofits sparse reserves.鈥
Yesterday, the Division of the Budget released the fiscal year 2021 First Quarterly State Budget Financial Plan. The plan shows revenue and tax receipts declines the result in a projected $62 billion in lost revenue through 2024.
“Cuts to essential services mean more people will die from overdose”, said John Coppola, Executive Director of the NY Association of Alcoholism and Substance Abuse Providers. 鈥淪piking rates of addiction and overdose, creating a greater demand for services, will go unchecked if cuts are made.”