Cuts Affect Wide Range of Services
States began cutting their budgets last spring, as the recession brought sharply weakened revenues. The cuts have intensified as the economy has worsened. Even as the need for state-funded services rose, states cut funding for services by 4 percent for fiscal year 2009 and an additional 4.8 percent for 2010, according to preliminary estimates by the National Association of State Budget Officers. These cuts are affecting important services. At least 45 states plus the District of Columbia have reduced services since the recession began. Service cuts with particular ramifications for vulnerable populations have occurred in the following areas:
- Public health programs: At least 29 states have implemented cuts that will restrict low-income children’s or families’ eligibility for health insurance or reduce their access to health care services. For example, Rhode Island eliminated health coverage for 1,000 low-income parents; Minnesota is cancelling a health insurance program for 29,500 low-income adults; Tennessee has frozen enrollment in its state children’s health insurance program (CHIP); and California is increasing the costs borne by families of nearly 1 million children that participate in its CHIP program.Washington is increasing premiums by an average of 70 percent for a health plan serving low-income residents.
- Programs for the elderly and disabled: At least 24 states plus the District of Columbia are cutting medical, rehabilitative, home care, or other services needed by low-income people who are elderly or have disabilities, or are significantly increasing the cost of these services. For example,Ohio made deep cuts to community mental health services and Arizona eliminated temporary health insurance for people with serious medical problems.
- K-12 education: At least 29 states and the District of Columbia are cutting aid to K-12 schools and various education programs. California, Michigan, and Mississippi have made significant cuts to school aid. Hawaii is furloughing teachers for 17 days this year. A cut in funding means that as many as 10,000 children in Illinois may lose eligibility for early childhood education, and Massachusetts is reducing funding for a number of early care programs.
- Higher education: At least 39 states have cut assistance to public colleges and universities, resulting in reductions in faculty and staff in addition to tuition increases. The University of California is increasing tuition by 32 percent. Tuition at all 11 public universities in Florida increased by 15 percent for the 2009-2010 school year. Students in Washington and other states face significant tuition increases as well, costing families hundreds of dollars per year. Michigan and New Mexico have made deep cuts to need-based financial aid programs.
- State workforces: At least 42 states and the District of Columbia have made cuts affecting state government employees. At least 26 states have instituted hiring freezes, 14 states and the District of Columbia have announced layoffs, 26 have reduced state worker wages, and several have delayed scheduled pay increases (including cost of living adjustments). In total, state and local governments have eliminated a total of 151,000 jobs since August 2008, according to the U.S. Bureau of Labor Statistics. Additional workers have lost pay and benefits.
Saturday, February 27, 2010
45 Little Hoovers
The Center on Budget and Policy Priorities reports on state-level budget cuts:
The full report is HERE.