Budget Advocacy

1. Budget Advocacy Advocacy 101 for community organizations September 13, 2005 Guest: John Clark, Office of State Comptroller CT Health Policy Project www.cthealthpolicy.org

2. The basics • Budget reflects our priorities -- not speeches, not even laws • $15.3 billion in General Fund for this year • Growing 8.8% this year • State fiscal year – July 1 thru June 30 (FY 06 refers to 2005-2006 fiscal year) • Interest on the debt -- $1.7 billion this year, 11¢ of every state dollar • Total debt is $12.7 billion, about $3600 per resident, no. 1 in US in debt/capita

3. Where it goes Medicaid 21% (50% reimbursed by fed.s) Education 20% Debt service 11% Health & Hospitals 9% Corrections 9% Where it comes from Personal income tax 36% Sales tax 22% Federal funds 16% Business taxes 8% Licenses, fees 6% Gambling 4% Cigarettes 1.6% Gas tax 3% The budget

4. Structure of the budget • Two parts – spending and revenue • Spending has two parts – appropriations and bonding (borrowing) • Technically a two year budget, but they make so many changes in the off years, it is really an annual process • Budget bill and implementers (the devil in the details) • Sections and line items not always rational or very descriptive

5. The players • Governor • Legislative Leaders – Speaker of the House, President of the Senate, House and Senate Majority Leaders • Co-Chairs, Appropriations and Finance Committees • Appropriations Subcommittee Co-Chairs • Office of Policy & Management (OPM) • Office of Fiscal Analysis (OFA) • Agency budget analysts, policymakers, legislative liaisons • Office of the State Comptroller

6. The process • Essentially year round • In fall agencies send current services levels and “options” to OPM/Gov • Gov proposes her budget in Feb • Divided up to Finance and Approp.s, then to relevant subcommittees • Hearings by agency, committee meetings • Subcommittees to comm in Mar/Apr • Finance and Approp.s reconcile • Negotiate with Gov • Pass and budget, she signs – hopefully by the end of the session • And take a short breather before it all begins again

7. Where to begin • Get your issue on the radar screen early and strong • Agency – see if they will include with their budget to OPM • Gov and OPM – try to get it into Gov’s proposal • Build political support early – regular lobbying • Testify? – hard to get above the noise, dangers of lumping in with other groups • Speak to Comm and Subcomm chairs to get it added to their budget • Work with OFA, thru friendly leg.s, on fiscal estimates

8. Tips • Generally same tips as for other advocacy • Prepare -- have your #s handy • Clear information – easy to read • Show your work, site sources (after clear info) • Build political support like any other issue – meetings w/ leg.s, calls, letters • Op-Eds and letter to editor very good ways to make your case • Work to keep fiscal estimates reasonable, have more back up than you think you’ll need • Be available, vigilant, keep in touch with friends in leg. so you can address issues that arise, your opponents won’t call you • You are in this for the long haul – even if you get the $$ this year (unlikely in first year), you will have to defend it in the future

9. Traps • Spending cap – “we can’t afford it” • They find ways around that for what they want • This is why they get the big money • “Find me the money somewhere else” • The divide-and-conquer trap, give up another program or find savings in your own to pay for it • When we have found them money (both savings and/or new money) they used it for other things anyway • We already tried that • They will say this even when they know it isn’t true • Give the reasons that either they didn’t, or this time will be different • Very few things work perfectly the first time

10. Numbers • DO NOT be intimidated • The most important pieces of fiscal estimating you already have – reality and common sense • Most important part of effective fiscal estimates is making them understandable but solid • Most only involves arithmetic • Just take your time to look over data, check it with last year’s numbers, etc. • Persistence in getting data from government, FOI is a critical tool • Get help, if you need it, develop relationships, but also develop the capacity internally • Share with your champions, let them use it as they see fit (do not insist on credit, do not publish automatically, only as a deliberate plan)

11. Spending Cap • 28th amendment to CT Constitution, was the price for passing an income tax • Limits state spending increase to avg. increase in CT personal income or inflation • Denise Merrill was right -- More of a “guide” than an absolute • They blow past it when they want to, first line excuse in saying no to advocates

12. Rainy Day Fund • Hedge against bad economic times • Surpluses must go there first theoretically • Holds up to 5% of General Fund appropriations • Emptied fast to cover declining revenues • State may need a higher threshold to really even out cycles and allow better planning – national avg. is 8%

13. The art of the fiscal note • Appendix to bills estimating how much the bill would cost the state (and municipalities) if passed • Drafted by OFA • High fiscal note can kill a bill • Often very subjective estimates • Often based (sometimes entirely) on agency input • Can give input to OFA, generally thru a legislator • Generally do not share publicly on your website, but deliver to your champion/messenger • Do your homework on estimating, show ALL your work, use credible sources • Difficult/impossible to change after the note is out • No one ever checks to see if notes are realistic afterwards, impolitic and pointless

14. Federal block grants • Run through agencies who decide how it will be divvied up, with legislative approval • Public hearings, but not well advertised • e.g. MCH grant • from HRSA • $5 million • must be matched with state funding • Services include newborn screening, children with special health care needs, outreach and care coordination for at-risk pregnancies, oral health

15. Bonding • State borrowing, supposedly for infrastructure and long term costs • Governor proposes, compromise with legislature, bill passes • But to be spent (allocated), it must pass the Bond Commission • Bond Commission agenda set by OPM – need them to get a project on the agenda • To see what gets on the agenda each month, and what has been funded in the past, check the Comptroller’s Bond Allocation Database – fascinating

16. Resources • OFA Budget Book http://www.cga.ct.gov/ofa/Documents/OFABudget/2005/Book/OpenBook.htm • Governor’s budget http://www.opm.state.ct.us/budget/2006-2007Books/2006-2007GovBudget.htm • Comptroller’s Bond Database http://www.osc.state.ct.us/finance/

17. For more help and regularly updated information go to The Health Advocacy Toolboxwww.cthealthpolicy.org/toolbox