Health and human services agencies see budget cuts

After receiving a veto from Gov. Mark Dayton calling its first spending proposal “reckless and foolish,” lawmakers worked to reduce unnecessary spending throughout Minnesota’s health and human services agencies while still providing an adequate balance of funding.

Sponsored by Rep. Matt Dean (R-Dellwood) and Sen. Michelle Benson (R-Ham Lake), the 680-page law trims $463.47 million in General Fund state health and human services agency spending during the 2018-19 biennium.

An additional $392 million from the Health care Access Fund will be spent over the biennium. Funded through a 2 percent tax on medical providers set to expire in 2020, the fund finances MinnesotaCare health insurance programs that increase access to health care for low-income Minnesotans. The increased spending from this fund for the upcoming biennium will be used to fund $389 million in Medical Assistance expenditures.

Under the law Department of Human Services’ General Fund appropriations will decrease by $500.2 million, including:

• $173.26 million for capitation payment delay;

• $19.3 million for MNChoices administration reform using person-centered planning principles;

• $18.61 million from the one-time use of Child Care and Development Block Grant funds for Child Care Assistance Programs;

• $15.27 million for child care assistance program integrity modifications;

• $13.08 million to defund the Medical Assistance Reasonable Opportunity to Enroll verification; and

• $11.73 million to provide long-term care Medical Assistance facilities for the Return to Communities program.

Notable funding increases for the department include:

• $24 million to fund self-directed workforce negotiations to implement rate adjustments in compliance with wages and benefits negotiated between Minnesota and the Service Employees International Union;

• $22.85 million for increased security hospital staffing to improve client care and staff security;

• $18 million for child care assistance program modification;

• $17.3 million to modernize the Medicaid management information and integrated service delivery systems;

• $12.42 million for compliance with federal managed care and access to care rules; and

• $10.28 million for state-operated services sustainability.

The Department of Health will see a budget increase of $36.3 million, most of it in General Fund spending, including $12 million for home visiting services for pregnant and parenting teens, and $7.63 million for operating adjustments.

The Board of Nursing ($2.67 million), Board of Nursing Home Administrators ($2.47 million) and Board of Medical Practice ($2.3 million) receive funding increases.

But, the Board of Physical Therapy ($1.47 million) and Board of Social Work ($533,000) will see a budget decrease.

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