Advocacy 2009

CT Nonprofits' Executive Director Ron Cretaro (pictured left), Public Policy Specialist Liza Andrews, and Policy Specialist Julia Wilcox are registered lobbyists representing our members’ views at the State Capitol. CT Nonprofits also utilizes the services of the firm Capitol Strategies — Patrick McCabe, Esq. & P. J. Cimini, Esq. — to assist in our advocacy efforts.

Public Policy:

CT Nonprofits' 2009 Cross-Sector Legislative Agenda

Budget:

CT Nonprofits' Summary of Biennial Budget for FY10-11

News

Biennial budget for FY10-11

Three months after the start of the fiscal year, a biennial budget for FY10-11 was passed. Early on the morning of September 1^st, the Senate passed HB 6802, the latest biennial budget proposal; just a few hours after the House had passed it. According to Representative Geragosian, House Chair of the Appropriations Committee, this budget proposal contains an additional $407 million in cuts above cuts previously made in SB 1801 (which is the budget the General Assembly passed back in June). Below is a general overview of HB 6802 as well a link to CT Nonprofits' document containing line items of interest to providers. Please note that this document contains changes made by LCO 9659, which is an amendment that was adopted with HB 6802. 

Governor Rell held a press conference later in the day on September 1^st to announce that she will neither veto the entire budget, nor will she sign it into law. Instead, she plans to use her authority for a line-item veto to eliminate approximately $8 million in additional spending added into HB 6802. Because she will not be signing the bill, it will not go into effect for 5 days. The Governor stated that she would issue another Executive Order to run the state until September 8^th when this budget takes effect.

Also, August 31^st, the General Assembly voted to bond the remaining FY09 deficit.

CT Nonprofits' Summary of HB 6802

GENERAL OVERVIEW: HB 6802 proposes net spending from the General Fund of $17.4 billion in FY10 and $17.6 billion in FY11.

A September 1^st Hartford Courant Article states: “The Democrats preserved spending for public education, higher education, the social safety net, libraries, nursing homes, Head Start, early childhood education, community health centers, school-based health clinics, and Dial-a-Ride for seniors. They also preserved offices that Rell had wanted to cut, including the healthcare advocate, consumer counsel, and the Office of the Child Advocate.”

Major highlights:

• LCO 9659, an amendment that was adopted by both chambers, reverses the original intent of HB 6802 to shift adolescent behavioral health services from the Department of Children and Families to the Department of Mental Health and Addiction Services. Adolescent behavioral health services will remain within DCF.
• Updates the definition of medical necessity, thereby reducing the number of health services covered under Medicaid.
• Moves Children’s Trust Fund into DSS.
• Includes a “millionaires tax” – couples filing jointly with income of $1 million or more will now pay an increased rate of 6.5% on their income above that amount (up from 5%).
• Raises the cigarette tax from $2 to $3 per pack; reduces the sales tax from 6% to 5.5% but only if the state is not running a budget deficit.
• $1,062,000 is moved from the Rainy Day Fund for use in FY10.
• Oversight for Juvenile Justice Services related to the Raise The Age Initiative will remain the responsibility of DCF (as opposed to transferring to CSSD).  Implementation is planned to move forward as follows: 16 Year Olds - January 2010. 17 Year Olds – Two Years Later (2012). 

COLA:  There is no additional funding recommended for private provider cost of living increases (COLA) in SFY10 or SFY11. There is also no across the-board reduction to private providers. 

Link to HB 6802
Link to LCO 9659, changes made to HB 6802
Link to OLR analysis of HB 6802 as amended by LCO 9659

Link to OFA highlights of HB 6802 as amended by LCO 9659

Link to Governor Rell’s statement on HB 6802
 

How Late Payments Harm Nonprofit Providers

Recently, CT Nonprofits surveyed approximately 500 members to assess how nonprofits were faring in the midst of the financial crisis. The survey focused on government funding and timely contract payments, including how those contract payments relate to a provider’s cash flow and use of credit lines. The following data is derived from the responses of 119 nonprofit organizations. Here’s what we found:

• 88% of respondents receive government funding
• 42% of state-funded providers report receiving late contract payments from the state
• 84% received payments issued by DSS at 60 days late; 70% received payments issued by DCF at least 30 days late
• 66% of respondents have a line a credit which they access in case of emergencies, such as late payments by the state
• 39% of respondents report a decrease in cash flow over the past year, with 43% of those respondents beginning to decrease staff size and 37% reducing employee benefits

Survey results clearly demonstrate that a problem exists for Connecticut’s nonprofit providers. Late contract payments from state agencies create cash flow problems, which in turn require providers to access funds from lines of credits and budget reserves. Both options ultimately result in increased costs to the provider. All of this compounded by inadequate funding is seriously jeopardizing the services that nonprofits provide to their local communities.

Read the full report.

Testimony