NJAMHA

Gov. Corzine Signs FY 2010 Budget

On June 29, 2009, Governor Jon Corzine signed the Fiscal Year 2010 $29 billion spending plan that generally protects programs for vulnerable citizens while cutting approximately $4 billion in spending overall.

“The budget I signed is $1.5 billion smaller than the first budget I signed in 2006 and is $4 billion smaller than last year’s budget, yet we have expanded my administration’s unequaled investment in direct property tax relief for working families,” Governor Corzine said in a press release.

According to the Corzine release, every department, agency and authority was ordered to make cuts, with more than 850 line items eliminated or reduced, including $300 million saved by renegotiating state worker union contracts and eliminating gas cards.

“Today, we can be proud of a budget that honors our commitment to our children, seniors and the most vulnerable,” Governor Corzine said.

The governor’s list of line item vetoes, which would further reduce the spending plan sent to him by the Legislature, was not yet available.

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Elected Officials Praised for Protecting Vulnerable Citizens

Governor Jon Corzine and the Legislature should be congratulated for protecting the needs of vulnerable populations, while struggling to cope with an unprecedented fiscal crisis, said Debra L. Wentz, Ph.D., CEO of the New Jersey Association of Mental Health Agencies (NJAMHA), which represents 125 non-profit community mental health care providers throughout the state.

“We understand that New Jersey faced tremendous challenges in balancing its FY 2010 budget and we greatly appreciate that the Governor and the Legislature have focused on maintaining support for individuals with mental illnesses and other vulnerable populations,” said Dr. Wentz in anticipation of the final passage of the $29 billion spending plan. “It is clear that elected officials heard our message that the economy has placed a tremendous strain on the mental health of New Jersey’s citizens who have been financially bankrupted and emotionally battered. The Governor and Legislature have demonstrated they understand that investing in treatment and services will save the state money in the long run and is the compassionate road to take.”

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National Budget News

President Obama just released his full budget providing a more detailed account of the budget blueprint recently approved by Congress. He proposed a detailed fiscal year 2010 federal budget that reduces or terminates 121 programs for a $17 billion savings in a proposed $3.4 trillion federal budget. Of the $17 billion of proposed savings, around half of the cuts relate to the defense budget.

The cuts proposed, if adopted by Congress, reportedly may not reduce government spending. Instead, President Obama’s proposed budget may increase overall spending on the president’s priorities including health care reform, and any reductions or savings would be shifted to the president’s priorities. (Washington Post, May 7, 2009)

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Co-pays, reductions limit access to wellness

Mercerville - According to the Kaiser Family Foundation, 60 percent of Americans do not seek health care right away, if at all, because they cannot afford it. In addition, 30 percent haven’t filled prescriptions and 20 percent reduce or skip doses. This problem would be exacerbated if New Jersey’s FY 2010 budget includes co-pays for Medicaid Fee-for-Service and Managed Care and Medicare Part D recipients. This budget also includes co-payments for individuals with HIV/AIDS who obtain free medications from the state because they don’t qualify for other assistance programs.

Another obstacle to accessing prescriptions is New Jersey’s proposed reduction of reimbursement rates to pharmacies serving Medicaid beneficiaries. As a result, small pharmacies won’t carry all prescriptions and patients will be discouraged from getting them filled.

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