Legislative Bulletin: Lawmakers Reach Final Budget Agreement
April 3, 2020
The Final Budget for State Fiscal Year (SFY) 2020-2021 has been passed by the Legislature and has now moved to the Governor’s desk for signing. While some of this year’s budget outcomes were not what we hoped for, there is more work to be done as the State continues to combat the spread of coronavirus.
Lawmakers Reach Final Budget Agreement
What has been an unprecedented budget cycle came to a close last night when the Senate and Assembly concluded their budget work and passed the State Fiscal Year (SFY) 2020-2021 Final Budget bills. Governor Cuomo and legislative leaders reached the budget agreement earlier this week, and despite doubts and many outstanding questions regarding the state’s economic forecast, the agreement managed to include some big policy initiatives such as changes to bail reform, the legalization of paid gestational surrogacy and mandatory paid sick days for all employees. As was the case last year, the legalization of marijuana was not approved in the spending plan.
LeadingAge New York released a brief overview of the SFY 2020-21 Final Budget yesterday afternoon, summarizing areas that affect multiple long-term care, post-acute care, and senior service lines. We will be publishing our comprehensive budget overview and sharing with members no later than Tuesday evening. In the meantime, members can click here to view a Health & Medicaid Budget Overview from Hinman Straub. More general highlights of the agreement are also outlined in Governor Cuomo’s April 2nd press release.
Not covered in yesterday’s budget update is an across the board cut to Medicaid. LeadingAge NY needed to confirm the specifics of the cut before notifying members. However, we have now clarified that the final budget agreement imposes a 0.5 percent across-the-board (ATB) reduction to Medicaid payments which is in addition to the 1 percent ATB cut currently in place. As a result, Medicaid payments will be reduced by 1.5 percent beginning April 1, 2020. We are seeking to confirm that the parameters of this cut are the same as the ATB cut imposed in January which exempted hospice. This reduction is slightly lower than the cut included in the Medicaid Redesign Team (MRT II) recommendations which would have made the total cut 1.875 percent. More details on this and other Final Budget provisions will be provided in our comprehensive budget summary to come next week.
But Wait, There's More...
The most unique aspect of the Final 2020-21 Budget is that, due to the current public health crisis and the subsequent slow-down of economic activity, the State does not have a clear picture of expected revenues for the remainder of the year. Ultimately, the budget was agreed upon while facing a deficit estimated to be as high as $15 billion. In an effort to address the instability of State finances, the Final Budget allows the Director of Budget (DOB) to adjust general or state special revenue as necessary to ensure that the budget is balanced. DOB will have three opportunities to make these adjustments throughout the year. Each time DOB moves to make an adjustment, the legislature will have 10 days to respond or disapprove the change.
Additionally, the budget as passed provides flexibility for the Executive to delay or defer MRT II recommendations in light of the COVID-19 pandemic. We believe this also provides an opportunity to draw down increased federal Medicaid matching dollars that have been authorized in the recent federal stimulus package, or dollars that could come in future federal packages.
What these unique circumstances mean for LeadingAge NY members is that our budget and funding related work is not over yet. LeadingAge NY will continue to stress to the Executive and the Legislature that we must protect long-term care providers as we combat the spread of coronavirus. We will continue to work tirelessly to ensure that federal stimulus dollars be appropriately directed to long-term care. And we will be sure to keep you informed along the way.
Since the release of the Executive Budget Proposal and the announcement of MRT II, LeadingAge New York worked to advance key budget proposals, achieve necessary revisions, and successfully oppose other proposals that would have adversely affected members and the individuals they serve. Our successes would not have been possible without your continued participation in advocacy efforts. Thank you so much for using your voice!
Nursing Home and Assisted Living COVID-19 Cost Survey
In support of Department of Health efforts to respond to provider needs, we and other associations are collecting information regarding the financial impact of the COVID-19 pandemic on providers. Nursing Home and Assisted Living providers should have received a request that they complete a survey on COVID-19 related costs by next week, or as soon as possible. There are two individual surveys for the related provider type, and we have linked them below for easy access:
- Nursing Home COVID Cost Survey – to be completed by CFO/Director of Finance
- Assisted Living COVID Cost Survey – to be completed by Administrator
We understand that this is an added burden during a hectic time and thank members for making the extra effort to respond to this request. If you have questions, please address them to Ken Allison, kallison@leadingageny.org.
CARES Act Expands Federal Small Business Loans
The Coronavirus Aid, Relief, and Economic Security (CARES) Act signed on March 27 provided about $2 trillion in federal dollars in response to the COVID-19 pandemic. About $350 billion of these funds are directed to provide loans to small businesses, with opportunity for loan recipients to receive forgiveness and not have to repay the amount borrowed. On April 3, small entities including smaller 501(c)(3) not-for-profit organizations will be able to access these funds. On March 31, the U.S. Department of Treasury issued guidance for potential borrowers and for lenders.
This LeadingAge Article provides a summary of the small business loan provisions included in the CARES Act, the Treasury guidance and potential next steps for aging services providers.
LeadingAge & LeadingAge NY Coronavirus Resources
LeadingAge NY is following all COVID-19 news very closely and doing our best to keep members informed of updates, recommendations and guidelines from the Department of Health (DOH). We encourage members to keep an eye out for email updates as well as visit our Coronavirus Resources page for the latest news and guidance. We also have re-organized our Member Q&A website so members can more easily navigate and search by service line.
LeadingAge NY is hosting COVID-19 Weekly Update calls, which are being held on Mondays from 11 am – 12 pm. You can click here to join the call from your computer, android or apple device. Or you can join the call by dialing in: 877 853 5257 (Toll Free); Webinar ID: 852 964 255.
LeadingAge NY is working with LeadingAge National as well to monitor the fast-changing situation. National is offering the following resources:
- Coronavirus Resources Page
- COVID-19 Group in the MyLeadingAge Member Community - LeadingAge members can hear from one another and share best practices for dealing with the coronavirus
- Coronavirus Daily Member Update calls at 3:30 pm ET. Past call recordings are available here and you can register here for calls scheduled through 4/26/20.
Contact: Ami Schnauber; 518.867.8854; aschnauber@leadingageny.org
Sarah Daly; 518.867.8845; sdaly@leadingageny.org