2017 Fiscal Year State Budget, NC Budget and Tax Center

Preliminary review of Governor’s Health and Human Services Budget: Supporting the health, safety and well-being of North Carolina Families

Public investments in health and human services of the state budget provide protections for the health and well-being of North Carolina families, children and seniors.  By strengthening healthy outcomes and ensuring access to high quality health services, North Carolina policymakers can improve the quality of life of all North Carolinians and build healthy communities that support thriving economies.

The Governor’s budget is able to make investments in targeted programs and services within health and human services and other areas of the budget because of the reductions in Medicaid costs resulting from lower enrollment and utilization.  This $318 million reduction in Medicaid is being driven primarily by an improving national economy that means less folks are qualifying for Medicaid and by lower utilization that could be resulting from better preventive health care.  Recent policy decisions like cutting reimbursements, raising copays and eliminating optional services over the years have likely also contributed to this lower utilization.

Here are key highlights (and missing items) in the HHS budget:

  • Expand Support for Alzheimer’s Patients and their Families through Project CARE ($1 million)
  • Expand support for Alzheimer’s Patients and their Families through Community Alternatives ($3 million)
  • Serve more four year olds through NC Pre-K through lottery receipts although there still would remain a waiting list of at least 5,000 at-risk children ($4 million)
  • Improve quality of child care in NC by pushing adding 7 FTEs to conduct criminal records verification, fraud prevention and detection and 3 FTEs to invest in training of child care staff ($663,435)
  • No funding to expand access to child care subsidies to ensure quality early childhood experiences for children and support low-income working parents
  • Support Children’s Developmental Services Agencies that serve young children with developmental disabilities ($2.5 million)
  • Ease transition to new state funding model for local public health departments ($17 million)
  • Fund two new positions to support the Maternal and Child Health Block Grant work to reduce infant mortality ($97,597)
  • Enhance child safety through Federal Improvement Plan implementation which will address deficiencies identified in the Child and Family Review ($8.6 million)
  • Provide rental assistance benefit for vulnerable citizens including low-income, elderly and disabled individuals ($459,000)
  • Invest in Medicaid reform to support administrative efforts to transform the Medicaid and Health Choice programs to reach $6 million ($1 million)
  • Address backlog and expand services for individuals with developmental disabilities ($2.5 million)
  • No Medicaid expansion to serve nearly 500,000 North Carolinians without health insurance
  • Implement Governor’s Task Force for Mental Health and Substance Use Recommendations ($30 million)
  • Mental health investments to enhance the community health system ($20.2 million)

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