Jun 16

Written by:
6/16/2011 7:19 AM 

We are certainly entering unchartered waters in a few weeks and I wanted to be sure folks really, really understand the magnitude of what is on the table, what is NOT on the table, and what this means for Minnesota moving forward. While we will be jumping headfirst into the legal arguments within the next few days, there remain many, many questions about the scope of “essential services” and how long there will be no state operating budget. Further, the ultimate question is what will happen to us when the dust settles and when the leadership with the Governor sign off on an agreement.

First things first: we have been keeping members up-to-date on the “countdown to a shutdown” via emails and newsletter articles, so you at least know what steps are being taken. I need to stress that this shutdown will certainly be different than the “near shutdown” in 2001 and the brief shutdown in 2005. This time notices have been sent out to state employees and to recipients of state government payments. This time there is a scope of unfinished business much larger than before—nearly all aspects of the state budget are on the line, not just a few areas. This time the “sides” are so far apart with only a few weeks to go that the length of shutdown is a concern. The state will need to make significant payments in mid-July to laid-off state employees per the terms of their contract. Once that time has passed, the next looming date is the start of higher education in August/September. We have been told that a two-month shutdown is a possibility, which gives us an even greater sense of urgency on the legal front. We must see that the court rules that not only are Medicaid payments essential, but a mechanism also exists to receive these payments.

Let us assume, for a moment, that we will be considered essential and will receive payments for our folks on Medicaid during a shutdown. This won’t mean the shutdown will be invisible to us, because there are questions about county functions still on the table: Who will do the screenings? Eligibility determinations? Case management work? There are questions about ancillary services—will clinics still take medical appointments if the payment will be delayed?

When the shutdown is over, there will be a state biennial budget, and what is keeping us up at night now is what that budget will look like. We are not in the back rooms hammering out the details of the cuts that will need to be made. As you recall, the Governor said he would cut even more from his budget to meet the Republican leadership “halfway” —but he didn’t specify which cuts. So, even though the omnibus health and human services bill that was passed by the Legislature (and vetoed by the Governor) had minimal cuts to nursing homes, and big cuts to elderly waiver, that bill did NOT reflect some of the additional reductions that may need to be made. We don’t know where the Governor will recommend additional cuts, although it would be safe to assume that he could go back to something close to his original budget released earlier this year (before the improvements in the supplemental budget minimized the “damage”) to come up with more cuts.

As a reminder, here is the summary of the impact of the Governor’s original budget:

Again, we are not in the room with the negotiators, so we need to once more ask you to gear up your grassroots messaging. We sent you an email with a link to a video we produced using the GREAT photos you sent us, and asked you to widely distribute it and talk to folks about it. Please include your legislators on this list, but also think about expanding your points of contact to include community folks who may think the state’s budget can be balanced without any new revenue.

Copyright ©2011 Patti