HHS Cuts Approved

Dan Gorenstein's picture
By Dan Gorenstein on Wednesday, November 19, 2003.
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Lawmakers signed off on a plan to cut 26 million dollars from New Hampshire Health and Human Services.

New Hampshire Public Radio's Dan Gorenstein reports.

As the newest Commissioner of Health and Human services, John Stephen inherited a daunting task-

He was ordered to eliminate 20 million dollars of program services and four million in personnel costs.

Earlier this month the new commissioner called for a reduction in mental health counseling, drug and alcohol treatment, and services for children.

He also proposed restricting eligibility in what?s called the Katy Beckett program.

That program offers assistance to families with severely disabled children to keep them out of institutions.

Stephen says he?s concerned the Katy Beckett program has grown from four to twenty million in less than ten years.

13:39 looking at the budget...I saw some numbers I though were high. And were dramatic increases.

Stephen admitted he hasn?t conducted a formal program review.

But he was certain he could save half a million dollars.

Track 6
:54 the draft set of rules I have before me, I can tell you I feel very comfortable with those numbers....that is a very conservative estimate in my opinion.

The legislative committee granted Stephen approval to audit the program to determine who should qualify.

But a few lawmakers pressed the Commissioner.

How would the program cuts affect the families enrolled?

The commissioner didn?t provide that information.

His lack of specifics on all the proposed cuts prompted three of the ten committee members to vote against Stephen?s budget plan.

Republican Senator Dick Green says with more time and data, the joint committee could have made a more responsible decision.

Track 13
2:09... I am not going to support something, by rubber stamping when I?ve only had it for two weeks. The data we received today it was very general, it was not specific. It didn?t tell us how many people would be affected, which positions were going to be affected, and how do I make an intelligent decision based on that?

Stephen also proposed cutting 4.2 million dollars over the next two years to hospitals for capital costs.

Gina Balkus with Dartmouth Hitchcock says her hospital could lose about 1.5 million over the next two years.

Track 16
:40 ... we can try to cost shift this to commercial payers, then that means people with health insurance will pay more. If we are not successful, we have to look at other options. And that could include reviewing programs, and maybe cutting programs, see if layoffs are necessary, and reviewing our levels of service to Medicaid patients.

While one senator apologized for grilling Stephen on his budget proposal, another applauded the new commissioner for his effort.

Often cuts to the HHS budget means reductions in federal aid.

In this case, the state could stand to lose an additional six million dollars.

But Republican Senator Bob Clegg said Stephen did his best to avoid painful cuts.

Track 10
1:35 ... typically, since I?ve been up here, we are used to commissioner?s coming up here and giving the most horrendous cuts in the world to try to avoid following legislative requests. He spent weeks and weeks trying to find the least amount of harm to the ones he serves.

Pieces of this new HHS budget must now get approval from the Governor, Executive Council and the full legislature.

In an additional move, Stephen also announced 4 million dollar cuts in personnel over the biennium.

For NHPR News, I?m DG.

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