The appropriations subcommittee for DHHS gets its first look at the House budget this morning. At a first glance, the only expansion is $115 Million the first year and $215 Million the second for projected Medicaid growth.  There are 157 reductions totaling $1.9 Billion for 2009-10 ($1.18 billion  recurring; $800 Million non-recurring) and $1.88 Billlion in 2010-11 ( $1.53 Billion recurring; $353 million non-recurring). The proposal eliminates 754.54 positions, some are unfilled, some are not.  Total DHHS budget for the first year is $3.555 Billion and $3.920 Billion the second.

Some items of note:
-$10 M reduction of Smart Start
-$16 M reduction in child care subsidies. They however will use $65 M in federal stimulus money for child care subsidies.
-$7 M reduction in LME administrative funding and pays providers directly
-Makes vital records operation receipt supported.
-Eliminates funding for 2 tobacco cessation programs
-Increases co-pay for emergency room for non-emergency visits and prescription drugs in NC Health Choice and Medicaid.
-Eliminates a fund set up in 2008 to recruit doctors to mental health hospitals which has never been used.
-Eliminates $1.2 Million to non-profits including Food Runners and institute of Medicine
-Modifies personal care services benefits in medicaid to “reduce overutilization” of services to save $49 Million

Not really cuts but a shift of funding:

-It replaces a lot of funding for specific programs with federal funds. Doesn’t cut just shifts to federal taxes.-It also uses at least $241.5 million in federal stimulus money for programs that the state was paying for.

Committee debate brings up the point that this is a first pass and there will be some changes and shifting around of money. The committee room is full of lobbyists for health care providers and services and reps from DHHS, who I’m sure will be busy over the weekend trying to protect their interests. Committee members expect many emails and calls. The debate will continue next week.  And we’ll be watching.