“Some 55 million beneficiaries will find out for sure Wednesday when a government inflation measure that determines the annual cost-of-living adjustment is released.

Congress adopted the measure in the 1970s, and since then it has resulted in annual benefit increases averaging 4.2 percent. But there was no COLA in 2010 or 2011 because inflation was too low. That was small comfort to the millions of retirees and disabled people who have seen retirement accounts dwindle and home values drop during the period of economic weakness, said David Certner, legislative policy director for the AARP.”

Read more from the L.A. Times

Wilson argues: “But as The Inquirer noted (“Shorting those in need,” June 23), annual increases for most of the services have been insufficient. Richman failed to note that the increase in funding she mentions is for expanded services, and not for the existing services that more than 700,000 individuals rely on. State funding has not kept pace with inflation.”

The Inquirer points out that this funding shortfall was proposed “despite waiting lists of tens of thousands of people who need these services, and despite rising agency costs for necessities such as fuel for transportation.”

About 700,000 people in Pennsylvania rely on these services, from autistic children to mentally retarded adults living at home with elderly parents. Overall state and federal funding for mental-health/mental-retardation programs totals about $5.4 billion. That includes a proposed $70 million increase to take about 900 families off of a waiting list, but there is no cost-of-living increase.”

The editorial board understands there is not nearly enough state money to fund every demand thrown the Legislatures way.  But, they point out that the mental health and mental retardation facilities often do not have a loud lobbying voice – as other interests do.  Therefore, they often get shorted in the state budget – when they need the additional funding the most. 

With funding for MH-MR and nursing homes falling way behind the rate of inflation, it is not only hard to care for those that need this help, it’s hard to find people who are able to work at a salary that simply cannot sustain a family.

A continuation of inadequate services can only lead to the entire system of these care facilities falling to pieces. “And it should go without saying that untreated mental illness represents a serious threat to the community that is not taken seriously enough.”

The Patriot says it’s time for the Legislature to pass legislation to make a cost-of-living increase mandatory every year for MH-MR and nursing care facilities.

Mental health agencies asked this year for a mere 3% increase in funding to keep up with inflation.  They say that basically, “the governor’s administration told them: Get in line and ask for it.

Oh, and be prepared to do the same thing next year.”

Advocates for these facilities that treat the mentally ill, ask why they should be required to hold rallies and lobby days every year to ask for funding?  Rallies take resources, time and money and often aren’t guaranteed success.  In those years when these facilities aren’t given a cost-of-living adjustment the programs suffer, employees suffer, and patients who need help are put on wait lists.

The Times-Leader asks, “Why should the region’s mentally disabled individuals and their parents be rounded up each year, transported to Harrisburg and paraded before legislators and the news media to state their case for additional funding?

The Times-Leader finds something very wrong with the current budget process and asks that local legislators lead the way to change the way it  works.

 ”Without a cost-of-living adjustment, the community-based service system cannot grow to meet the state’s needs,” said Alan Hartl, top legislative liaison for the Pennsylvania Community Providers Association.

The agencies are asking for a 3% increase to meet the rising cost of care, transportation and utilities.

In other news, Rendell also continues to say that  there is no question that PA could be fined up to $3 million a day by the federal Labor Dept. if the budget is not passed in time.

He then continued that CA had been fined in 1994 in a similar situation.  However, Leni Fortson, a spokesperson from the Dept. of Labor rebutted that this was simply not true.

She claimed that the state asked the dept. in 1998 (not 1994) what would happen if it violated that labor law and the dept. provided pertinent court cases in response.  The spokeswoman said that, “No investigation took place that resulted in any type of sanctions.” 

The editors ask: “Wouldn’t it make sense for care of those who can’t care for themselves to be among the top priorities of state government? Given that the government is funded by people who are residents of Pennsylvania, you’d think so.”

However, despite 3% inflation in the last three months this years current budget plan once again flat-funds these facilities.  Since 1994 these facilities have fallen behind the rate of inflation by 33.01%.

The Sun-Gazette states: “This happens because every year, as the budget pie is being divided, other interests are given a priority over programs such as those offered locally by Hope Enterprises and the Lycoming County Mental Health-Mental Retardation program.”

The editorial board support a bill that would guarantee that these facilities get a cost-of-living adjustment in funding every year, stating that it’s more than reasonable, and seems like “the right thing to do.”

James Campbell, President of Hope Enterprises,  (a fully-state funded Mental Health agency) along with the state Mental Health-Mental Retardation Coalition and state Association of Rehabilitation Facilities are all fighting for an annual guaranteed cost of living increase equal to the rate of inflation.  Last year the House and Senate passed a bill that required a COLA based on inflation which Gov. Rendell then vetoed.  He then later approved a mere 3% increase.

The  Sun-Gazette reports:

“Flat funding often means a loss of employees. ‘In this region, we turn about 30 percent of the agency over each year and that’s a scary thing for consistency of care,’ Campbell said.

Campbell said the agency will ‘never catch up’ from being 37.69 percent behind inflation, and the ability to fund programs is not Hope’s only concern.

‘We’re just trying to stop this falling behind. We’ve been able to survive on what we have had. But we’re running out of things to do, how to cut costs and still provide quality services to people that are in need. We’ve tried every trick in the book to try and retain good people.’”

Direct support professionals empoyed at community MH-MR programs have an average annual salary of only $16,824.  In addition to poor salaries, this flat-funding has caused wait-lists across the state for people needing support that can’t be funded, said  Campbell.

Campbell explains that this year, like years past, MH-MR providers are fighting not only to get a COLA but trying to get one guaranteed with each year’s budget.

A bill that would grant this guarantee, sponsored by Sen. Erickson (SB 1373), passed the Senate on Tues. June 3rd, and has moved onto the House Health and Human Services Committee.  However, the companion bill in the House (HB 2241) sponsored by Rep. Barbara McIlvaine-Smith has not yet seen debate in the Democrat-controlled House as it has been stuck in the House Appropriations Committee since May.

State Rep. Garth Everett stated that he’d “love” to debate and vote on the House bill, but they haven’t had the chance yet “because of the way the budget is being held up”.

[HealthpointPA note: Gov. Rendell, Administration Officials, and the Department of Public Welfare all contend that COLA's for MH-MR facilities and other non-medical provders are not affordable in the current budget -- but one way to make them affordable in the future is to support the DPW pharmacy carve-out plan.  Many legislators, including most of the GOP, remain very skeptical of the carve-out.  Read more about this isssue in Healthpoint's June 2nd budget update].