Report Title:

Emergency Appropriation; Budget Shortfall; General Assistance; Mental Health; Hawaii Health Systems Corporation

 

Description:

Emergency appropriation to address the budget shortfall for general assistance payments in April, May, and June of 2009, and to address the budget shortfall in fiscal year 2008-2009 for mental health services and Hawaii Health Systems Corporation.  (SD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1064

TWENTY-FIFTH LEGISLATURE, 2009

H.D. 1

STATE OF HAWAII

S.D. 1

 

 

 

 

A BILL FOR AN ACT

 

 

MAKING AN EMERGENCY APPROPRIATION FOR THE DEPARTMENT OF HUMAN SERVICES TO ADDRESS THE BUDGET SHORTFALL.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


PART I

     SECTION 1.  This part is recommended by the governor for immediate passage in accordance with section 9 of article VII of the Constitution of the State of Hawaii.

     SECTION 2.  A critical funding emergency exists.  The general assistance program is a block grant program.  The maximum allowance a general assistance recipient may receive is determined by dividing the amount of the appropriation by the number of general assistance recipients.  The general assistance program will expend all appropriated funds before the end of the current fiscal year and the department will be unable to maintain the current maximum general assistance payment benefit.  The current assistance grant for disabled individuals is barely enough to cover living expenses for individuals on a fixed income who have no other viable means of support.  Stopping the grant payment or reducing the amount of the grant payment for these individuals poses a real threat to these individuals' health and safety.  To prevent the reduction of general assistance payments in the fourth quarter of fiscal year 2008‑2009, additional funds are urgently needed.

     SECTION 3.  Notwithstanding any other law to the contrary, there is appropriated out of the general revenues of the State of Hawaii, the sum of $           or so much thereof as may be necessary for the months of April, May, and June of 2009 for the purpose of meeting the general fund shortfall to be used for general assistance payments.

     SECTION 4.  The sum appropriated shall be expended by the department of human services for the purposes of this Act.

PART II

     SECTION 5.  This part is recommended by the governor for immediate passage in accordance with section 9 of article VII of the Constitution of the State of Hawaii.

SUBPART A

     SECTION 6.  Mental health needs of the State continue to outweigh present capacity.  The department of health has been working to improve the mental health of Hawaii's people by reducing the prevalence of emotional disorders and mental illnesses.  However, the current financial crisis and severe economic downturn being experienced in the State and across the nation have caused services such as mental health education, treatment, and rehabilitation through community-based mental health centers and private providers of services to be extremely under-funded, posing a risk to the mental health services provided by the department of health.

     In addition, the Hawaii health systems corporation, the fourth largest public hospital system in the nation, operates public health care facilities that provide essential safety-net hospital and long-term care services throughout the State.  Current financial challenges faced by the Hawaii health systems corporation and the State pose a risk to the public health care services provided by the Hawaii health systems corporation.

     Although both the adult mental health division and the Hawaii health systems corporation are department of health programs, federal medical assistance percentage funding in the amount of $320,000,000 is expected over the next nine quarters from the federal government.  Expending federal medical assistance percentage dollars on medicaid-eligible services, like those provided by the Hawaii health systems corporation and the department of health for community-based care management and other services, and directing the department of human services to use a portion of the funds to pay for these services would not only fund safety net health services immediately from now until June 30, 2009, but allow the State to draw down additional federal medicaid dollars.

SUBPART B

     SECTION 7.  Although funds were appropriated to the department of health for adult mental health services for the fiscal period beginning July 1, 2008, and ending June 30, 2009, a critical funding emergency now exists.  The program will expend all appropriated funds before the end of the current fiscal year, and the department will be unable to meet its fiscal obligation to provide services to certain adults with severe mental illness.

     The adult mental health division serves a continuously increasing number of eligible mental health consumers.  Concurrently throughout the year, the adult mental health division has increased its related services in the areas of case management, crisis services, treatment services, rehabilitation services, and housing.  This emergency increase is to continue existing services to meet the needs of the expanding eligible population and to continue funding of required services developed during the fiscal year.

     The purpose of this Act is to appropriate emergency funds to address the budget shortfall for ongoing services of the adult mental health division.

     SECTION 8.  There is appropriated out of the general revenues of the State of Hawaii the sums as provided or so much thereof as may be necessary for fiscal year 2008-2009 for the revenue shortfall for ongoing services provided by the adult mental health division, for the contractors as follows:

     (1)  Mental Health Kokua                    $2,000,000

     (2)  Steadfast Housing Development Corp.    $3,000,000

     (3)  Institute for Human Services, Inc.       $115,000

     (4)  Waianae Coast Community Mental

          Health Center, Inc.                      $500,000

     (5)  Helping Hands Hawaii                     $320,000

     (6)  Hale Ipu Kukui Alakai                     $51,000

     (7)  Care Hawaii, Inc.                      $4,000,000

     (8)  North Shore Mental Health, Inc.        $

     (9)  Community Empowerment Services, LLC    $

    (10)  Life Foundation                        $

    (11)  Aloha House, Inc.                      $

     The sum appropriated shall be expended by the department of human services for medicaid eligible services provided by the department of health adult mental health division.

SUBPART C

     SECTION 9.  This emergency appropriation is necessary to ensure that the Hawaii health systems corporation can pay for operations and provision of current levels of services at its Maui region facilities, Kauai region facilities, East Hawaii region facilities, and West Hawaii region facilities.

     The purpose of this part is to appropriate general funds to address the budget shortfall for fiscal year 2008-2009 in the following amounts to ensure that the Hawaii health systems corporation facilities have sufficient funding from now until the end of June 2009 to maintain current operational levels:

     Maui region facilities                     $16,000,000

     Kauai region facilities                     $7,900,000

     East Hawaii region facilities               $7,000,000

     West Hawaii region facilities               $3,700,000

     SECTION 10.  There is appropriated out of the general revenues of the State of Hawaii the sum of $34,600,000 or so much thereof as may be necessary for fiscal year 2008-2009 for the Hawaii health systems corporation to maintain current operational levels.

     The sum appropriated shall be expended by the department of human services for medicaid eligible services provided by the Hawaii health systems corporation.

PART III

     SECTION 11.  If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

     SECTION 12.  This Act shall take effect upon its approval.