On Monday, March 28, the Senate Appropriations Committee took testimony from the Family and Social Services Administration (FSSA), the Indiana Department of Corrections (IDOC), and Indiana Supreme Court Chief Justice Shepard.
Non Medicaid portion of the budget:
- 9.4M reduction in appropriation request for CHOICE
- Implementation of transition from Care Select to Chronic Disease Management will help FSSA reduce costs by over $11M.
- Reductions of almost $18M in administrative costs due to attrition, efficiencies and contract deductions.
- Over $11M in savings from maximizing federal dollars.
- Continuation of RCAP moratorium for a savings of $3M.
- Reduction of approximately $7M in DD state line funding as a result of transitioning individuals to waiver funded services.
- Elimination of DDRS Crisis and Outreach contracts that will save approximately $6M
- $15M in annualized savings due to the SOF Transition plan.
House version of FSSA’s budget:
Rep. Espich’s version of the budget included amendments that will “decrease the savings” that FSSA proposed they could make with their recommended policy changes. See below for a list of the changes that Espich made, and their “additional costs” to the state.
Changes to Non Medicaid portion of the budget:
- Increase CHOICE appropriation by $4.7 and $9.4 in FY 12 and 13.
- Modified language around Evansville facilities limiting FSSA’s ability to gain efficiencies and savings (FSSA will lose savings of $.7 and $.7 in FY 12 and 13)
Changes made to Medicaid portion of the budget:
- Reinstated optional services to Medicaid, which will cost $12.9 and $14.0M in FY 12-13
- Language on managing Mental Health Drugs was changed to reduce the Potential savings by at least 50%, “costing” ($3.6M and $3.6M in FY 12-13
o Exempts psychiatrists from having to get prior authorization, grandfathers patients currently receiving Medicaid from having to adhere to the preferred drug list.
- Change the language regarding the Nursing Facility Quality Assessment Fee (QAF) costing an additional $20.8M and $17.2M in FY 12-13.
- “Increase in Medicaid appropriation to cover funds previously augmented” ($11.5 & $11.5 in FY 12 and 13.
- Indiana’s prison population has increased by 41% since 2000. The inmate population growth is surpassing DOC’s housing capacity. Indian’s prisons are currently operating at 99.8% capacity. They have done all they can do to create space and reorganize the existing system to accommodate population growth. The only other options are changing legislation and/or funding the expansion of facilities. DOC urges the legislature to consider altering sentence requirements and funding community based corrections.
- 78 counties are participating in community corrections programs. These programs are proving to be effective options for managing population growth and limiting costs. See page 18 of presentation to see breakdown of the types of community correction programs (work release, home detention, day reporting, etc).
Four major changes in DOC budget request:
- Contractual increase for food service contract. Increase requested due to increased population and rising food costs.
- Contractual increase for medical contract (will result in savings for state)- increase request due to increased population, rising medical costs, and expanded scope of service. The current contract pay private vendors on a per offender/ per day rate. Sherriff’s have a “legislative deal” that states that they will only pay private vendors the Medicare rate + 4% for services. By instituting the Medicare +4 contract, the state will save $4,655,000/year.
- Contractual increase for New Castle Correctional Facility- They have a contract with a private vendor that requires DOC to pay a daily cost for the supervision and housing of offenders in this facility. Due to increasing offender populations, DOC needs to operate this facility at maximum capacity throughout the biennium (thus they have to increase their budget request).
- Active electronic tracking of sexually violent predators- A new statute, effective July 2010, requires DOC to place active electronic tracking devices on all offenders defined as “sexually violent predators.” The Criminal Law and Sentencing Policy Study Committee recommended that DOC amend this law so that they would only have to track offenders deemed to be at high risk of committing a new sexual offense. Implementing the tracking system without amendment will cost $11.3M over the biennium. Amending the law will cost $2.6M over the biennium.
Committee will consider four items:
- Increased funding to update the appellate case management system for electronic filing and service of documents.
- Continue to allow the salaries of judges to be considered alongside all other state employee raises.
- Increase funding for the Public defenders commission as more counties choose to participate in program
- Allow fees to be increased from $7-10 for JTAC