March 2, 2007
Revenue Agreement Highlights Budget Talks
Governor Spitzer and legislative leaders have reached agreement on available revenues clearing a major hurdle toward reaching agreement on a final state budget.
The leaders agreed that another $575 million is available above the $120.6 billion executive budget proposed in January. Earlier this week the Senate Majority forecasted an increase in receipts of approximately $1 billion and the Assembly Majority predicted an increase of about $830 million.
NYSAC has prioritized its budget recommendations and will be working with the Senate and Assembly as they develop their one-house budget proposals over the next ten days. (Ken Crannell)
RED ALERT: New Medicaid Billing Requirements
The Centers for Medicare & Medicaid Services (CMS) has issued new guidance in Medicaid billing for services provided under the School Supportive Health Services Program (SSHSP) and the Preschool Supportive Health Services Program (PSHSP). According to a letter sent to counties from the State Education Department, school districts must bill the Medicaid program only for the following types of services that are Medicaid reimbursable: speech services, transportation and counseling services. This is effective immediately and according to the NYS Office of the Medicaid Inspector General (OMIG), no Medicaid claims should be submitted for payment, regardless of the service periods, which do not comply with the requirements contained in the letter. In addition, the alert sent by the OMIG states that there can be severe fiscal penalties for failure to comply with these new requirements. NYSAC has reached out to the Governor’s office in order to coordinate with the State Education Department and Department of Health and move forward on this issue. Please share this information with the appropriate county official and contact NYSAC if you would like a copy of the letter. (Jessica Morelli)
Senate Appoints New Social Services Committee Chair
This week Senate Majority Leader Joe Bruno appointed Senator Carl Kruger (D-Brooklyn) Chair of the Senate Social Services and Children and Families Committee. The unprecedented appointment surprised many in Albany since Kruger is a democrat and all other committees in the Senate are chaired by members of the majority, republicans. NYSAC is pleased that the committee chairmanship has been filled; it has been vacant since December 31st. We worked extensively with the previously chair, Senator Ray Meier (R-Oneida) and are hopeful hat Senator Kruger will follow in Meier’s footsteps. The Senate Social Services and Children and Families Committee is an important committee for counties since counties are the administrative arm of the state’s human services programs. In addition, up to two-thirds of county budgets are social services programs. While the Senate has one committee, the Assembly breaks the issue areas into two committees: Social Services, currently chaired by Assemblywoman Deborah Glick (D-Manhattan) and Children and Families, chaired by Assemblyman William Scarborough (D-Queens). (Jessica Morelli)
State of the Judiciary Speech Has County Implications—References Probation, Judge’s (DA) Pay Raise and Indigent Defense
This week, Chief Judge Judith S. Kaye delivered her fourteenth annual State of the Judiciary address. In her speech, she highlighted the need for increased judicial salaries, jury reform, the consolidation of the court system, the importance of quality indigent defense services and a proposal for the court system to take over probation.
Several items proposed by Judge Kaye would impact counties. For instance, when judges and justices of the Unified Court System receive pay raises, it triggers a statutory pay increase for all full time district attorney’s and the five county clerks of the City of New York. NYSAC is lobbying State leaders to hold counties and local taxpayers harmless for the potential pay increase.
Judge Kaye also suggested that the State take over the Indigent Defense Program. She believes that a single statewide system is the best method for providing equal representation for indigent defendants. She believes it is the State’s obligation to provide these services in a uniform fashion.
On probation, Judge Kaye described how the current probationary scenario benefits the State by placing individuals on probation that would otherwise be in State prison. She said that “[t]he State has failed to live up to its statutory bargain of contributing fifty percent towards the costs incurred by local probation departments.” She proposes merging the Division of Probation and Correctional Alternatives into the Judiciary, thereby creating a new State Office of Probation and Correctional Alternatives. As part of her proposal, Chief Judge Kaye recommends giving probation departments an additional $75 million in State funding, to be phased in over a three-year period. Judge Kaye contends this merger “makes sense on many levels” and cites the close working relationship between probation and the courts.
NYSAC will continue to work with the Judiciary, State and local officials to develop comprehensive yet mutually beneficial solutions to these programmatic changes Judge Kaye hopes to impose. (Adriano Bongiorno)
Governor adds $1.4 Million to Offset DA Raises
The salary increase for judges included in Governor Spitzer’s Executive Budget trigger an automatic raise for District Attorneys as delineated in section 183-a of the Judiciary Law. Last week, in his 21-day amendments to the Executive Budget, the Governor included an additional $1.1 million to offset the local impact of this mandated pay increase for District Attorneys, outside New York City. However, the salary increase proposed by the Governor will be retroactive to April 1, 2005 and if counties are required to increase local salary increases on a retroactive basis, the statewide impact would be approximately $6 million dollars to all localities, including New York City. (Adriano Bongiorno)
Governor, Legislative, Business and Labor Leaders Announce Accord on Workers Compensation Reform
Governor Spitzer, Senate Majority Leader Joseph Bruno, Assembly Speaker Sheldon Silver and the leadership of the Business Council of New York State and the New York State AFL-CIO announced agreement this week on sweeping reforms to the State’s Workers Compensation system. Under the accord, benefits for injured workers will increase for the first time in over a decade and employer premiums will be reduced by 10 to 15 percent with additional savings anticipated in future years.
The reform package includes the following measures.
- The maximum weekly benefit for injured workers will be increased from $400 to $500 in year one, to $550 in year 2, $600 in year 3 and to two-thirds of the average weekly wage in New York in year 4. Once the benefit reaches the level of two-thirds of the average weekly wage, the maximum benefit will be indexed annually.
- The minimum weekly benefit will be increased from $40 to $100.
- The cash payment term of permanent partial disability will be capped by establishing a maximum number of years for which payments can be made. Medical payments will continue and a safety net program will be established to assist hardship cases.
- New therapy and medical assistance programs will be establish to facilitate prompt return to work.
- Strong anti-fraud measures will be established and new provisions to crack down on employers who do not provide workers compensation insurance will be implemented.
- The Compensation Insurance Rating Board, which determines employer premium rates, will sunset in February of 2008. The Superintendent of Insurance will be charged with providing recommendations to the Governor and the Legislature on what, if anything, should replace the board by September of 2007.
- The Superintendent of Insurance will be directed to pass along any savings achieved through the reforms of the system in employer premium rate reductions.
The Governor also announced that he is directing the Superintendent of Insurance to work with the Workers Compensation Board, the Department of Labor and representatives of the State Legislature to pursue additional administrative reforms and to propose additional legislative action. Key elements of the Governor’s charge to the Insurance Superintendent include:
- developing of a comprehensive and transparent means of collecting and evaluating data on the costs and outcomes of the workers compensation system,
- designing and implementing an expedited hearing process to reduce litigation and shorten the time required for injured workers to receive treatment and return to work,
- designing and recommending a new system of fact-based medical guidelines to replace the current system by years end, and
- implementing training on the treatment guidelines and provide training to law judges on their implementation.
The Governor has been meeting with Business, Labor and legislative leaders to develop the reform agreement since December. Legislation to implement the reform agreement announced this week has not yet been introduced in the Legislature. (Jeff Osinski)
Next week
- The Senate and Assembly will be in Session on Monday, Tuesday and Wednesday of next week.
- The National Association of Counties (NACo) Legislative Conference will be held from March 3rd through the 7th next week in Washington, D.C.
