Spring/Summer 2009 - Budget Updates

On 2/4/09, Governor Rendell released his proposed budget for state Fiscal Year 2009-10. (The state fiscal year begins July 1, 2009 and ends June 30, 2010.)

Throughout February and March, the Pennsylvania Senate and House Appropriations Committees held separate, department-by-department budget hearings to review the spending plan for each agency.

Throughout the spring, the Pennsylvania Legislature will review and debate the proposed budget before development and enactment of the final spending plan for the state.

GOVERNOR’S PROPOSED DRUG AND ALCOHOL BUDGET

Department of Health, Bureau of Drug and Alcohol Programs:
State Assistance:

	-- A decrease of $825 thousand for a total of $41.750 million ($-825,000)
	-- Level funding from the Liquor Control Board for a total of $2.121 million

Projected Federal Funding:

-- A projected decrease of $567 thousand for a total of $56.474 million in the Federal Drug and Alcohol Block Grant. The final dollar amount available to states in this line item is still being debated in Congress.

Department of Public Welfare:

	-- An increase of $5.482 million to the Behavioral Health Services Initiative for a total of $30.575 million for drug and alcohol.
	-- Elimination of $12.107 million in the Intergovernmental Transfer Program. This Federal program has been phased out entirely.

PA Commission on Crime and Delinquency:

-- Level funding to the Intermediate Punishment Drug and Alcohol Treatment program for a total of $17.574 million.

In summary, the Governor’s proposed budget includes a total of $3.64 million in cuts to the drug and alcohol effort in line items that primarily fund addiction treatment for working people who have no commercial insurance coverage and are ineligible for Medicaid.

FEDERAL BUDGET DEBATES

UNDERWAY FOR FEDERAL FISCAL YEAR 2010

Federal FY2009 (10/1/08 – 9/30/09)

On 2/5/08, President Bush released his proposed budget for Federal Fiscal Year 2009. (The Federal fiscal year begins October 1, 2008 and ends September 30, 2009.)

Unable to reach agreement on the federal spending plan, in September of 2008, the U.S. House approved a Continuing Resolution to allow spending to continue at the 2008 levels.

In March of 2009, Congress enacted an Omnibus Budget Bill to resolve the budget process for the current Federal fiscal year.

Drug and Alcohol Funding in the Omnibus Budget Bill

The Omnibus Budget Bill for Federal FY2009 includes funding for addiction treatment, prevention and intervention as follows:

	--- An increase for the Substance Abuse Prevention and Treatment (SAPT) block Grant of $19.8 million. ($1.7587 billion to $1.7786 billion)
	--- An increase for the Center for Substance Abuse Prevention (CSAP) of $6.88 million. ($194.12 million to $201 million)
	--- An increase for the Center for Substance Abuse Treatment (CSAT) of $14.5 million. ($399.8 million to $414.3 million)
	--- Level funding for the Safe and Drug Free Schools and Communities: State Grants Program of $294.76 million.

Federal Fiscal Year 2010 (10/1/09 – 9/30/10)

Field groups have been meeting in D.C. to develop funding recommendations for the Federal FY2010 that begins October 1, 2009.

Field recommendations for Federal FY2010 are:

	--- An increase for the Substance Abuse Prevention and Treatment (SAPT) Block Grant of $150 million. ($1.7786 billion to $1.929 billion)
	--- An increase for the Center for Substance Abuse Prevention (CSAP) of $75 million. ($201 million to $276.3 million)
	--- An increase for the Center for Substance Abuse Treatment (CSAT) of $75 million. ($414.3 million to $489.3 million)
	--- Increase for the Safe and Drug Free Schools and Communities: State Grants Program of $55 million. ($294.76 million to $349.7 million)

Debate on the FY09-10 budget is expected to begin shortly in Congress.