Legislative update

ESHB 1694 - the “pre-emptive” budget cutting bill that passed the House last week was heard in the Senate Ways and Means Committee on Wednesday, and while it has yet to be scheduled, it may see executive action this week. Thanks to all of you who have continued to communicate your concerns. In testimony before the Ways & Means Committee, the Washington Health Care Association pointed out that the proposed cuts go into effect in the last two or three months of the FY 2009, leaving very little time for providers to make adjustments to their budgets. WHCA continues to argue that providers will not be able to reduce payments for fixed operations costs. The only area of flexibility is in staffing where approximately 65 percent of the costs occur and the result will be layoffs and job losses that will impact direct care to the state’s most vulnerable. The job loss cannot help but impact unemployment costs, health care costs for the uninsured and put more stress on our food stamp and welfare programs, and comes at a time when the long term care industry is one of the few significant sectors of job growth in this country. WHCA also shared concerns with those Senators who do not serve on Ways and Means, and reminded them that the Obama economic stimulus package will result in millions of dollars of unanticipated federal matching funds from the nursing home and boarding home portion of the FMAP (Federal Medical Assistance Percentages), many times greater than the targeted $2.4 million GF-S (General Fund – State) cuts for nursing facilities and $375,000 GF-S cuts for boarding homes. It is important that we continue to remind legislators that these new resources make nursing home and boarding home rates cuts unnecessary.

Legislative discussions regarding both the 2009 Supplemental Operating Budget and 2009-2011 Biennial Operating Budget continue. This week, WHCA has a number of key meetings with legislators and legislative staff to discuss the enhanced FMAP revenues from the federal economic stimulus package. WHCA’s goal is to ensure that those monies are used to ensure stable and adequate funding. Nursing home and boarding home rates continue to fall short by over $18 per resident day, and the $92 million total funds cuts proposed in the Governor’s budget for nursing homes will have a detrimental effect on quality of resident care.

St. Francis wants to encourage you to continue your communications efforts with your legislators regarding all of these issues. As a reminder, you want to make sure that your communications are factual and non-aggressive in nature. While we may be disappointed in the vote of House members who voted in favor of budget cuts in ESHB 1694, it’s important that we avoid assessing blame for these actions. The leadership in the House is locked up in support of the proposed cuts until they have a better picture of the state’s revenue picture and the economic stimulus package. We have heard there may be an effort to backfill cuts with the enhanced FMAP dollars.

The supplemental and biennial budget proposals are slated for release following the March revenue forecast and caseload updates; then it will be more important than ever that your contact your legislators to oppose cuts to nursing homes and boarding homes.

Here is contact information for our elected officials:

Senator Dale BrandlandRepublican Whip(R) 42nd LEGISLATIVE DISTRICT
Olympia Office:203 Irv Newhouse BuildingPO Box 40442Olympia, WA 98504-0442(360) 786-7682Fax: (360) 786-1999
E-mail form: http://apps.leg.wa.gov/memberemail/MailForm.aspx?Chamber=S&District=42

Rep. Doug Ericksen(R) 42nd LEGISLATIVE DISTRICT
Olympia Office:425B Legislative BuildingPO Box 40600Olympia, WA 98504-0600(360) 786-7980
E-mail form: http://apps.leg.wa.gov/memberemail/MailForm.aspx?Chamber=H&District=42&Position=1

Rep. Kelli Linville(D) 42nd LEGISLATIVE DISTRICT
Olympia Office:204 John L. O'Brien BuildingPO Box 40600Olympia, WA 98504-0600(360) 786-7854
E-mail form: http://apps.leg.wa.gov/memberemail/MailForm.aspx?Chamber=H&District=42&Position=2