To: Community members
From: Heidi L. Reed, Commissioner, MCDHH

Yesterday, January 26, the Governor filed his House 1 Budget for FY'12 to propose balanced funding for the state's programs and services next year. This briefing is being sent to provide you with a summary of House 1.

MCDHH Overview

FY'12 appropriation in House 1 would provide MCDHH with a budget of $4,718,131. This total is 2% below the funding level appropriated for FY'11, which was $4,830,218. This decrease is in the dollar amount of $112,087 and follows the current FY'11 reduction of $160,235. MCDHH would respond to this decrease in funding by eliminating or reducing vacant administrative and consulting positions.

MCDHH would maintain Deaf and Hard of Hearing Independent Living Services (DHILS) with level funding. However, the Interdepartmental Service Agreement (ISA) between MCDHH and MRC would not be funded during FY'12, and this would reduce funding for cross- disability DHILS provider agencies.

There will be continued fiscal limitations next year, and it will be important for our state to have as strong a service delivery system as possible with available resources. Along with all other state agencies, MCDHH has a role in the urgent task of changing the ways in which government services do business, and the additional loss of administrative support will be difficult for all of us. We will face this challenge with strong commitment to establishing universal access through effective communication, education, and advocacy services on behalf of Deaf and Hard of Hearing people throughout Massachusetts.

Statewide Budget Overview

House 1 spending next year will be $570 million (1.8 percent) less than FY11. Controlling costs, especially in health care, is an important part of the House 1 budget proposal. State agencies will need to manage with reduced funding levels, and over 900 further position reductions will likely be necessary.

EOHHS Budget Overview

House 1 appropriates $14.95 billion to EOHHS agencies. Compared to FY11, this is an increase of 0.1% ; mostly within the MassHealth program. Appropriations for other agencies and programs within EOHHS would be reduced by $91.1 million, or -1.9%. This reduction in funding will be difficult, and EOHHS is committed to working with stakeholders and consumers to mitigate the impact of necessary reductions.

On behalf of MCDHH, thank you for your dedicated attention throughout the budget process, for the questions you ask, for your recommendations, and for your continued support and partnership with us now and in the year ahead.