What is meant by “State-Only Services”?

“State-only services” means those services funded entirely with state dollars, as opposed to the ALTCS program, which is funded in part with federal funds. Persons receiving state-only services have cognitive disabilities, cerebral palsy, epilepsy or autism resulting in substantial functional limitations. State-only services include residential, respite, habilitation, employment support, day treatment and training, and therapies.

Will the Federal Stimulus Dollars Prevent Further Cuts to DD Services?

Some, but not all. Federal stimulus dollars will likely prevent reductions in eligibility standards for federally-matched programs, such as AHCCCS and ALTCS. Unfortunately, stimulus money will provide no relief from the FY 2009 DES-DDD cuts, and nothing in the stimulus package will provide relief for FY 2010 DDD state-only services.

Is it True that the Legislature Intends to Change the Mission of DES to Focus Solely on Employment Services?

Probably not. While the Chairmen of the Appropriations Committees in the House and Senate have proposed such a change in connection with the FY 2010 budget, the proposal has not yet been considered by those bodies. There is nothing yet to indicate that a majority of members, or the Governor, are in agreement with such a change.

If State Budget Cuts Were Not Supposed to Affect the ALTCS Program, Then Why Were the Rates for Habilitation Communication and Music Therapy Reduced?

The enhanced provider rate for these two services was not matched with federal dollars and entirely state funded. These services were reduced to the reimbursement level recognized and matched by the federal government.

Will the Cuts to DD Services be Restored/Prevented by the Recent Lawsuits?

A coalition of DD providers and their clients filed suit against the state based upon the cuts to provider rates and state-only services. A ruling is expected shortly. If successful, there could be some temporary, short term relief from the FY 2009 cuts, but there is no guarantee that future cuts will not be implemented by DES-DDD or the Legislature.

** Lawsuit Update: On March 11, 2009, Judge Joseph Heilman of the Maricopa County Superior Court issued an order temporarily preventing DES from implementing its plans to reduce provider rates by 10% and suspend state-only and early intervention services. As a result, DES will be issuing “corrective notices” to individuals and families restoring and continuing services at previous levels. Judge Heilman concluded that DES-DDD likely violated state and federal law in making the cuts by, among other things, failing to utilize the ISP process, and that the proposed cuts will place consumers and providers in immediate and irreparable harm. This victory for individuals and families will probably protect services through fiscal year 2009. The lawsuit does not guarantee that cuts will not be made in fiscal year 2010.

Are the FY 2009 Cuts to DD Services Temporary, or Will they be Continued into FY 2010 (which Begins on July 1, 2009)?

The Legislature has not passed a FY 2010 budget, so we don’t know. If the reduced FY 2009 DES budget is continued into FY 2010, the effect will not be as severe because cuts will be annualized over the whole year, rather than the four months that were left in FY 2009. On the other hand, if the Legislature passes a FY 2010 budget with cuts to DES that are above the FY 2009 reductions, we could see services permanently reduced.

Should we Appeal the Suspension of Our State-Only Services?

Yes. Consumers and families should take advantage of any opportunity to appeal the reduction, suspension or denial of services. State-only services will be suspended regardless of whether one appeals or not, and any appeal is unlikely to change the outcome. However, it is important for consumers and families to make their position known to DES-DDD and lawmakers.

*This is not intended to provide legal advice; contact an attorney for individual questions.

What Happens to Consumers Receiving Residential Assistance Through the DD State-Only Program?

DES-DDD officials have stated that cuts will not affect state-only residential services, and that no one will lose the “roof over their head.” However, the reduction in services and supports which allow individuals to live with their families or independently may necessitate changes in residential settings.

Did DES-DDD Make Administrative Reductions or Only Cut Services?

DES has reduced administrative expenditures through staff reductions, furloughs and operating reductions. Within DDD alone, nearly 100 employees have been terminated, and remaining employees have been furloughed, so that they are required to take unpaid time off. Numerous other administrative reductions have been implemented by DES, including the elimination of $6 million that was intended to upgrade the eligibility system.

Why has DES-DDD Kept the State-Run Institution at Coolidge Operating?

DES-DDD and policymakers are looking at options for the Arizona Training Program at Coolidge, and in particular, whether closing that facility would result in state savings.

If the Legislature Reduced the FY 2009 DES Budget By $100 million, why did DES make Reductions totaling $150 million?

DES had an existing budget shortfall of approximately $50 million. That is, caseload growth made the original FY 2009 appropriation insufficient. So, in addition to the existing $50 million shortfall, DES had to absorb the legislatively mandated $100 million reduction.

Will the Legislature’s Recent Appropriation of $18 Million to DES Help?

On March 12, 2009, the Legislature appropriated about $18 million in federal stimulus funds to DES to be used to backfill some, but not all, of the child care reductions. This money will allow DES to maintain child care eligibility for families making below 165% of the federal poverty guideline. This money will not directly affect any of the DES-DDD programs.