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The South Carolina State Budget: Limited Options, Fewer Solutions

The South Carolina State Budget: Limited Options, Fewer Solutions. Rep. Dan Cooper Chairman, Ways & Means Committee Rural Hospitals Meeting Monday December 6, 2010 Columbia, South Carolina. Outline. Current Budget Allocations Possible Solutions.

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The South Carolina State Budget: Limited Options, Fewer Solutions

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  1. The South Carolina State Budget: Limited Options, Fewer Solutions Rep. Dan Cooper Chairman, Ways & Means Committee Rural Hospitals Meeting Monday December 6, 2010 Columbia, South Carolina

  2. Outline Current Budget Allocations Possible Solutions

  3. Allocations General Fund Allocations for FY 2010/11

  4. Allocations Total Fund Allocations for FY 2010/11

  5. In terms of real dollars:

  6. FY 2011-2012 • As we move into next year the BEA does anticipate limited growth (1%) that would generate total general fund revenue for the year of $5.86 billion. • But when you factor in Constitutionally required items and annualzations the budget gap is approximately $1 billion.

  7. Possible Solution Considerations State Agency Restructuring Committee Education Funding Reform Health Care Funding Reform

  8. 1. State Agency Restructuring Committee Proviso 89.136 We have 3 Subcommittees • 12 Member Committee • Co-Chaired by Rep. Cooper and Sen. Leatherman • Other Members: • House – Bingham, Merrill, Loftis, Dillard, & Lowe • Senate – McConnell, Shoopman, Jackson, Hutto, & Alexander • Budget and Control Board • Health, Social, Environmental, and Criminal Justice • Education, Transportation, and Regulatory

  9. Possible Outcomes of Restructuring • Budget and Control Board Subcommittee: • Abolish the current Budget and Control Board and move many of its functions to a newly created Cabinet level Department of Administration • Review the need/function of the five-member Budget and Control Board • Health, Social, Environmental, and Criminal Subcommittee: • Combine Sea Grant Consortium and the Conservation Bank with DNR • Consolidation of PPP and Corrections • Consolidation of state-wide law enforcement agencies (DNR, PPP, SLED, DPS)

  10. Possible Outcomes of Restructuring cont. • Education, Transportation, and Regulatory Subcommittee: • Board of Regents Model or further enhance the role of the Commission on Higher Education • Department of Cultural Affairs (State Museum, State Library, Dept. of Archives and History) • Combine Minority Affairs, Consumer Affairs, and Dept. of Human Affairs into a single agency

  11. But even if we do all that… … and then begin to completely zero out agency general fund budgets, it really does not get us very far.

  12. To achieve the dollars savings needed…. The new state organizational chart would look something like this. This would be all that exists in State Government.

  13. Everything else would be gone….

  14. 2. Education Funding Reform • Simplification and Consolidation of the funds in the EIA and the K-12 General Fund, to include the (EFA) to streamline funding to districts and provide maximum flexibility. • Diploma Requirements – create multiple diploma tracks: • Occupational Track - for students with IEPs • Standard Track – 20 credit hours • Advanced Track – 24 credit hours • Modify the Index of Taxpaying Ability • There is a study committee that is set to report January 1st

  15. 3. Health Care Funding Reform • Current Year: • HHS will come before the B&CBd. next month to request approval to run a deficit for the current FY (2010/11) of $354 million • Next Year: • HHS’s budget request for next year (FY 2011/12) is $663 million (that does annualize their deficit). • Possible Solutions? • 1 – Reduce Enrollment – limited on what we can do here by Health Care Reform • 2 – Change/Eliminate Services Offered • 3 – Reduce Reimbursement Rates

  16. Health Care Funding Reform cont. • What are our optional programs? • Chiropractic Services for Adults • Clinic Services for Adults • Dental Services for Adults • ESRD Vitamins and Nutritional Supplements • Hospice Services for Adults • Psychiatric Hospitals for Children • ICR/MR • Integrated Personal Care • Optometry Services for Adults • Pharmacy for Non-Institutionalized Adults • Podiatry Services for Adults • Outpatient Services for Adults in Home Health • RBHS for Adults • Rehab Therapy for Adults • Climate Control • Appliances • Chore Services • Eliminate Environmental Modifications • Incontinence Supplies • Respite Care • Medically Complex Children’s Waiver – In Home Respite • Medically Complex Children’s Waiver – Medical Day Care • Nutritional Supplements • Telemonitoring • Program of All Inclusive Care for the Elderly • If we completely eliminate all of the above programs we reduce the cost of the program by $100 million per FY.

  17. Health Care Funding Reform cont. • In terms of provider reimbursement rates the savings are again limited. • A 3% reduction across all provider types would save: • $29.9 million • While a 10% reduction across all provider types would save: • $100 million • It is expected that a 10% rate cut to some rural hospitals would force them to close their doors.

  18. Rep. Dan Cooper Chairman, Ways and Means Committee South Carolina House of Representatives Questions?

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