Counties seek state financial help

03/22/2006

House members blast federal cuts

BY FREDERICK MELO
Pioneer Press

Bracing for deep cuts to social services, county officials are begging the state to shoulder a larger share of the cost for managing the needs of the elderly, disabled and mentally ill.

A new bill introduced by state Sen. Sharon Marko, DFL-Cottage Grove, would use almost a third of the state’s tax relief fund to make up for $90 million in federal reductions to Medicaid-sponsored case management programs. Marko called the request a one-time appropriation to offset the effects of the Deficit Reduction Act, signed into law last month by President Bush.

“Without state help to address the loss of federal funds, counties will likely have to raise the funds through property taxes,” Marko said. The alternative would mean laying off dozens of county caseworkers and sharply reducing programs for developmentally delayed adults and children, among other vulnerable groups.

Marko’s bill is co-sponsored in the House by state Reps. Jim Abeler, R-Anoka, and Thomas Huntley, DFL-Duluth.
Flanking Marko at a statehouse news conference Monday, advocates for children’s services and county officials from across the state blasted federal lawmakers for attempting to rein in the national deficit by shaving funds from Medicaid.

“Shame on Congress and this president for putting us in this situation,” said Jim Koppel, director of the Children’s Defense Fund-Minnesota.

In signing the Deficit Reduction Act last month, the president said the biggest challenge to the budget is mandatory spending — or entitlement programs like Medicare, Medicaid and Social Security. He said these programs are growing faster than the economy and the population and at nearly three times the rate of inflation.

Nancy Schouweiler, president of the Association of Minnesota Counties, said the reductions are “not a matter of a little belt-tightening.”

In Dakota County, where Schouweiler is a county commissioner, officials are bracing for nearly $4.1 million in cuts to case management programs. A reduction of that size would delay or eliminate services for 1,890 people, including 785 children at risk of abuse or neglect.

Making up the shortfall with county funds would require raising the county’s property tax levy by 4 percentage points — matching the increase already felt by taxpayers this year.

To ease the crunch on county services, Marko’s bill would use surplus funds from the state’s $317 million tax relief account. That may put her proposal on a crash course with other lawmaker’s pet projects.

In his supplemental budget recommendation last week, Gov. Tim Pawlenty outlined three potential uses for the account. They included adding $159 million to the state’s budget reserves; putting $100 million toward emergency items and budget fixes, largely related to sex offender programs; and $50 million in general tax relief.

“We expect, of course, that legislators will have a wide variety of ideas of their own,” said Brian McClung, the governor’s spokesman.

In an interview, Marko and other officials criticized U.S. Rep. John Kline for voting in favor of the Deficit Reduction Act, which narrowly passed the House. Kline did not return calls seeking comment.

Marko and former FBI agent Coleen Rowley of Apple Valley are seeking the DFL nomination to oppose Kline, a two-term Republican, in his re-election bid.

Estimated size of social service cuts for case management programs:

Dakota County: $4.1 million

Hennepin County: $22.1 million

Ramsey County: $8.2 million

Statewide total: $90 million