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TO: NDSC Members and Affiliated Parent Groups
FROM: Susan Goodman, Director, Governmental Affairs
DATE: February 27, 2007

President's Budget Reduces Funding for Disability Programs

On February 5, 2007, President Bush released his budget proposal. This is the first step of marking the official start of the federal funding cycle. The president's budget recommends cuts to most health, education and work programs of importance to people with disabilities.

Education Programs
The President's budget level funds at the FY '07 level, Part B of the Individuals with Disabilities Education Act (IDEA). This would result in a reduction in funding for these programs. Additionally, the President proposes a $13 million cut to the early intervention program for infants and toddlers with disabilities and their families.

Medicaid If enacted, the Administration's Medicaid proposals would substantially reduce the federal funds that states use to purchase services. Medicaid is the primary source of funding for community support services for adults with disabilities. In addition, Medicaid provides funding for some populations for many services that children need and that cannot be addressed through special education services.

The manner in which states can make up the loss of Medicaid funds are as follows:

  • cutting back on their Medicaid programs by reducing eligibility, benefits, or payments to providers;
  • cutting back on other state programs and using those funds to replace federal Medicaid dollars lost; or,
  • increasing taxes.
Congress is unlikely to accept these cuts and will develop its own spending plan this spring as it moves through the budget and appropriations process. NDSC will closely monitor these activities.

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Senate Health Committee Approves Mental Health Parity Bill

By an 18-3 vote, the Senate Health, Education, Labor, and Pensions Committee on February 14 approved legislation (S. 558) requiring business with 50 or more workers to offer the same medical benefits for mental health care as they do for other medical conditions.

The proposed Mental Health Parity Act of 2007 would not require businesses to offer mental health benefits, but if they do, benefit packages must be in parity with other medical benefits in the areas of patient deductibles, co-payments, and annual and lifetime coverage limits, as well in covered hospital days and visits.

The bill's sponsors have said they hope the measure can be brought to the Senate floor soon. A similar bill is expected to be introduced into the House in March.

In March, Reps. Patrick J. Kennedy (D-R.I.) and Jim Ramstad (R-Minn.) are expected to introduce companion legislation, the Paul Wellstone Mental Health and Addiction Equity Act.

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Lifespan Respite Care Act

The Lifespan Respite Care Act, passed last year, expands access to respite care through a competitive grant process. Lifespan respite programs are defined as coordinated systems of accessible, community-based respite care services for caregivers of individuals regardless of the individual's age, race, ethnicity or special need.

The new law would authorize $289 million over five years for state grants to develop Lifespan Respite Programs to help family's access quality, affordable respite care. Lifespan respite programs are defined in the Act "as coordinated systems of accessible, community-based respite care services for family caregivers of children and adults with special needs." Specifically, the law authorizes funds for:
  • development of state and local lifespan respite programs;
  • planned or emergency respite care services;
  • training and recruitment of respite care workers and volunteers; and
  • caregiver training.
Funds would be provided on a competitive grant basis to state agencies, other public or private nonprofit entities capable of operating on a statewide basis, a political subdivision of a state that has a population greater than three million, or any already recognized state respite coordinating body.

President Bush did not include funding for the Act in his FY '08 budget proposal However, efforts are underway in the Senate to funds will be appropriated in the FY '08 Congressional budget. For a copy of the Act, go to www.archrespite.org/RespiteAct.pdf.

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If you have questions or comments about the Newsline, please contact Susan Goodman at Susang1961@aol.com.