STATE BIENNIAL BUDGET

Transcription

1 STATE BIENNIAL BUDGET Governor Scott Walker signed the state biennial budget (2017 Wisconsin Act 59) on September 21, Prior to signing the budget, the Governor issued 99 vetoes. County-related highlights of the state s two-year spending plan include: Next Generation 911: The budget provides approximately $7 million annually, beginning in FY19, for creation of a statewide 911 network. Creation of a statewide network is the critical first step towards upgrading Wisconsin s 911 system. Child Welfare Funding: The budget provides an additional $5 million annually, beginning January 2018, for child welfare services and nearly $3 million for the expansion of in-home safety services program statewide over the biennium. The child welfare funding increase is the first increase in the children and family aids appropriation since the appropriation was created. County Transportation Funding: The budget provides the largest increases in county transportation funding in more than a decade. Specifically, the budget provides approximately $13 million in additional county general transportation aids (GTA), an additional $5 million annually in local road improvement program (LRIP) funding, an additional $7.5 million annually in local bridge funding, and an additional $33.7 million in routine maintenance agreement (RMA) funding. The budget also enacts the federal swap program that results in efficiencies by exchanging federal funding for state funding in the local surface transportation program. County Conservation Funding: The budget provides $900,000 annually in additional funding for county land conservation staffing and cost-sharing grants. While past budgets have appropriated additional funding for the program, this budget represents the first time the additional funding will be appropriated on an ongoing basis.

2 Regional Service Delivery: The budget allows counties to form joint commissions to deliver services collaboratively. This new budget language will give counties the option to deliver services regionally or cooperatively with other units of local government without impediment from existing state statutes. County Veterans Service Officer Grants: The budget reverts county veterans service officer grants back to a block grant program and eliminates all restrictions on how the grant dollars can be spent. This change will allow the grant dollars to be spent as efficiently and effectively as possible in an effort to increase services to veterans. The WCA Government Affairs staff has prepared the following summary of countyrelated provisions enacted as part of the state biennial budget bill. Please contact a member of the WCA Government Affairs team with any questions. Final Budget Summary 2

3 AGRICULTURE, ENVIRONMENT, AND LAND USE UW-Extension Pollution Abatement Program: The budget eliminates the requirement that the DNR allocate $500,000 in each fiscal year for education and technical assistance provided by the UW-Extension relating to the nonpoint source water pollution abatement program. County Conservation Activities: The budget increases the amount of cost sharing for non-point abatement projects and other land and water conservation activities performed by counties by $825,000 annually. Soil and Water Resource Management Bond Authority and Cost Share Grants: The budget provides $7 million in SEG-supported general obligation bonds for grants to counties for implementation of land and water resource management plans, including cost-share grants to landowners. Funding amounts are consistent with the prior biennium. Environmental Management Account Funding Changes: The budget increases expenditure authority for watershed nonpoint source contracts and other environmental aids. In addition, the budget reduces the transfer of funding from the general fund by $3.2 million and instead transfers the aforementioned amount from the general fund to the nonpoint account. Department of Forestry Relocation: The budget requires the chief forester to relocate to a location north of STH 29. Further, the budget provides relocation assistance to any existing employees currently in the division s central office that are willing to relocate to a state office north of STH 29. Aquatic Invasive Species Education and Control Grants to Local Governments: The budget provides $500,000 conservation SEG (Water Resources Account) in fiscal year in one-time funding for aquatic invasive species education and control grants. Permitting of Concentrated Animal Feeding Operations (CAFOs): The budget requires that DATCP and DNR jointly conduct a study, to be completed by December 31, 2018, to determine whether the Wisconsin Pollutant Discharge Elimination System permit program for Concentrated Animal Feeding Operations (CAFOs) should be transferred from DNR to DATCP. Private Onsite Wastewater Treatment Systems (POWTS): The budget extends funding for the POWTS replacement or rehabilitation grant program to the end of the biennium. County Conservation Staffing and Cost-Sharing Grant Program: The budget provides an increase in funding for the program of $900,000 in each year of the biennium. Total annual funding for the program is $8,964,100. Final Budget Summary 3

4 County and District Fair Aids: The budget provides $25,000 in each year of the biennium for aids to county and district fairs. The total budget allocation is $50,000. Forest Mill Tax: The budget eliminates the forest mill tax and transfers monies from the general fund in the amount of $89.2 million in and $91.6 million in into the forestry account of the conservation fund. As a result of the general fund transfer, funding in the forestry account of the conservation fund is unchanged from the prior year. COUNTY ORGANIZATION AND PERSONNEL Crisis Intervention Services: The budget provides $60,000 in each year of the biennium from the Department of Veterans Affairs administration and grants and loans appropriation for a crisis intervention services demonstration program administered by the Department. County Veterans Service Office (CVSO) Grant Program: The budget restores the CVSO Grant Program to a block grant as it was prior to the biennium. The restrictions on the uses of the grant dollars have also been eliminated granting the CVSOs more flexibility in utilizing the funds. Rental Unit Energy Efficiency: The budget eliminates rental unit energy efficiency standards and certifications, along with the powers of the Department of Safety and Professional Services (DSPS) related to those standards and requirements. DSPS will be allowed to take enforcement action for violations of the standards that occur before the effective date of the budget. Also, the budget eliminates the requirement that the owner of the rental property, before transferring ownership, must do one of the following: 1) have the rental unit inspected by a certified inspector who will then issue a certificate that the unit meets minimum energy efficiency standards; 2) if the unit is scheduled for demolition within two years, a waiver of certification must be obtained from DSPS or a certified inspector; or 3) obtain a stipulation between the transferee of the unit and DSPS or the city, village, town in which the unit is located showing that the transferee will bring the unit into compliance with minimum energy standards within a year of the transfer. The budget also eliminates the requirement that the Register of Deeds not record a document that transfers real estate that contains a rental unit unless the document is accompanied by that certificate, waiver or stipulation under current law. Total budget adjustment for this program will be -$47,600 in PR and -$320,000 in PR- REV. Prevailing Wage: THE GOVERNOR PARTIALLY VETOED THIS PROVISION. The budget fully repeals prevailing wage (state prevailing wage law and highway prevailing wage law) for state construction projects including projects led by the DOT effective September 1, Final Budget Summary 4

5 State Funding and Positions to Replace Depleted Federal Funds for Elections Administration: The budget provides $2,898,300 in GPR and $1,277,100 in FED to the Elections Commission s federal aid for election administration appropriation as well as 21 positions for the Commission s general program operations appropriation for the agency to continue providing services that have been supported from federal Help America Vote Act (HAVA) of The Elections Commission must use all available HAVA funds remaining in the agency s appropriation prior to spending any GPR that is provided for the purpose of replacing HAVA funds. Local Government Property Insurance (LGPI) Fund: The budget closes the LGPI fund to new policies after July 1, 2017 and renewals after December 31, Coverage cannot be extended beyond December 31, 2018 and all claims must be filed before July 1, 2019 or they will not be covered. Any funds remaining after July 1, 2019 will be dispersed amongst the local governmental units that were insured on July 1, Currently there are 157 policies issued through LGPI with a total insured value of $1.6 billion. Brown County Innovation Center: The budget provides $15,000,000 for the innovation center in Brown County under the state s building program. As part of this appropriation, the Building Commission will provide $5,000,000 in GPR-supported bonding to assist the County in the construction of a science, technology, engineering and mathematics innovation center within the Brown County Research and Innovation Park. The funding from the state will be in the form of a grant to the County. The State Building Commission would be required to confirm that the County has secured additional funding for the project of at least $10,000,000 from non-state revenue sources. DOA will be required to review and approve the plans for the project prior to the issuance of a grant from the State Building Commission. Finally, the funding for this project was modified to require that the innovation center will be located on or adjacent to the UW-Green Bay Campus. Close Registration for Domestic Partnerships and Eliminate Certain Benefits Administered by ETF: The budget eliminates the option for Wisconsin residents to register a domestic partnership under Chapter 770 beginning six months after the effective date of the budget. The delayed effective date will provide the necessary time for domestic partners to determine if they will obtain a marriage license to retain benefits. All current domestic partners will be able to retain their designation and rights established by law however, to retain healthcare benefits, domestic partners would have to become legally married. Health insurance for surviving domestic partners of deceased employees and decease retired employees will be retained by the survivor. Also, the surviving spouse of a protective occupation participant would be eligible for duty disability survivorship benefits if the spouse was in a domestic partnership with the participant on the date the disability occurred. Health and Human Services Department of Children and Families (DCF) Final Budget Summary 5

6 Children and Family Aids Increase: The budget increases the Children and Family Aids allocation by $1.25 million FED in FY18 and by $5 million FED in FY19. This represents a $5 million calendar year increase beginning in CY18. The budget also increases funding in the children and family aids allocation by $460,600 annually to reflect base reestimates and to fully fund foster care rates under current law. Total funding for the children and family aids allocation is $70,211,100 in FY18 and $74,308,000 in FY19. Surplus Retention Limitations for Providers of Rate-Based Services: The budget modifies statutory contracting requirements for rate-based services. The changes take effect on January 1, 2018, and would first apply to contracts commencing performance after that date. The budget requires that a contract for a rate-based service must allow a provider to retain from a surplus up to 5% of the revenue received under the contract unless a different percentage is determined by DCF, DOC, or DHS by rule. As a result, counties would not be able to specify a lower retention percentage in the contract. DCF, DHS, and DOC would be required to consult with one another and promulgate administrative rules: (a) requiring that contracts for rate-based services allow the provider to retain from a surplus up to a rate of 5%, or other rate determined by DCF, DHS, and DOC, of the revenue received under the contract; and (b) establishing a procedure for reviewing rate-based service contracts to determine compliance with state law requirements for purchase of care and service. Further, the rates established by DCF, DHS, and DOC by administrative rule would apply uniformly to all rate-based service contracts. The budget repeals several provisions under current law relating to a maximum retention of 10%, return of the excess above 10%, application of the accumulated reserves, and DCF development of payment levels that correspond to performance measures, and instead requires that if the aggregate surplus retained by a nonprofit provider of a ratebased service under all contract periods ending in the calendar year for that rate-based service exceeds 5% of the total revenues under such contracts as of December 31, then the provider of the rate-based service must provide written notice of the amount of the excess to all purchasers under those contracts. The provider would be required to return a purchaser s proportional share of the overall excess if that purchaser provides a written request no later than six months after the date the purchaser receives the written notice of the excess. If DCF, DHS, or DOC determines based on an audit or fiscal review that the amount of the excess identified by the provider is incorrect, then DCF, DHS, and DOC would be able to recover the funds after the six-month period has expired. DCF, DHS, and DOC would have to commence any such audit or fiscal review within six years after the end of the contract period. Final Budget Summary 6

7 The budget also increases the dollar threshold for DCF, DHS, and DOC to provide a purchaser with a certified financial and compliance audit report from $25,000 to $100,000. Foster Care Rates: The budget increases the basic maintenance rates for foster care by 2.5% for CY18 and by another 2.5% for CY19 ($284,200 in FY18 and $855,900 in FY19). Of this amount, $172,600 in FY18 and $519,500 in FY19 would support children and family aids payments for child welfare expenditures outside of Milwaukee County. Kinship Care Rates: The budget provides an increase of $577,100 in FY18 and $1,306,200 in FY19 in order to support an estimated 1% annual increase in caseloads and to fully fund increased kinship care benefits. Monthly benefits under the budget will increase by 2.5% beginning January 1, 2018 and by 2.5% beginning January 1, Tribal High-Cost Placement Funding: The budget consolidates the appropriations funded by tribal gaming receipts for unexpected or unusually high-cost of: (a) out-ofhome placements of Indian children by tribal courts and subsidized guardianship payments for guardianships of Indian children ordered by tribal courts; and (b) out-ofhome placements of Indian juveniles who have been adjudicated delinquent by tribal courts. The budget also provides additional spending authority of $247,500 annually for the newly-combined appropriation. Total funding in the budget is $717,500 annually. Services for Victims of Sex Trafficking: The budget provides $1,000,000 annually to expand services for victims of child sex trafficking and converts the appropriation from annual to biennial. The budget grants juvenile courts exclusive original jurisdiction over any child who is a victim of, or at substantial risk of becoming a victim of, child sex trafficking. Runaway and Homeless Youth: The budget creates a new appropriation and provides $100,000 annually to DCF to support grants to programs selected by DCF that provide services for runaway and homeless youth. Wisconsin Shares Child Care Subsidy Program: The budget: To conform with federal law, provides for a minimum period of eligibility equal to the lesser of three months after the permanent termination of an authorized activity, such as employment, or until DCF, a local agency, or a county department redetermines the individual s eligibility. Provides that in authorizing hours of child care that DCF must take into consideration the child s learning and development and promote the continuity of care. DCF would not be required to limit authorization of hours to the participating parent s scheduled educational or work activities or to the amount of hours spent in those activities. Provides that a temporary break from an authorized activity is itself an authorized activity for purposes of Wisconsin Shares eligibility. Final Budget Summary 7

8 Provides that children would not lose eligibility for aging out of Wisconsin Shares by reaching the age of 13 (or 19 if disabled) until the participating parent s eligibility is redetermined at the end of the twelve-month period. Requires as a condition of eligibility that participating children be immunized in the same manner required by state law for public schools, except that the immunization requirement could be waived for reasons of health or religion. Creates an asset limit of $25,000 for eligibility in the Wisconsin Shares child care subsidy program. The asset limit would not apply to foster parents, subsidized guardians, interim caretakers, or kinship care relatives. Mitigating Benefit Drop-Off in Wisconsin Shares: The budget allows participating families in Wisconsin Shares to continue eligibility after the family s income increases above the 200% FPL exit threshold. The budget provides continued eligibility to participating families whose incomes have increased above the 200% FPL exit threshold. The family s co-payment would increase by $1.00 for every $3.00 by which the family s gross income exceeds the 200% FPL exit threshold. The subsidy amount would be reduced by an amount equal to the increase in the co-payment. As a result, the subsidy would scale down with an increase in income rather than sharply dropping at the exit threshold. However, if the gross income of a participating individual s family exceeds 85% of the state median income for a family of the same size, then the individual would not be able to receive a child care subsidy. Child Care Background Checks: The budget: Requires DCF to conduct all background checks of child care providers, caregivers, and nonclient residents. Persons and child care providers seeking a license, a contract, or certification would have to submit a background information request. Conforms background checks to federal law. Requires a background check of a person who is not a resident of this state or who has not been a resident of this state at any time within the five preceding years to include a criminal history, sex offender registry, and child abuse and neglect registry search of all states in which the person was a resident in the preceding five years. Alters the list of serious offenses for which an individual is barred from being a child care provider, caregiver, or nonclient resident of a child care provider. Allows a person who is denied a license, certification, contract, or employment because of information contained in a background check to seek review of that denial from DCF and to appeal that review decision. Shortens from 60 days to 45 days the amount of time that a child care provider may employ or contract with a caregiver or allow the residence of a nonclient resident pending receipt of the person s background check results. Final Budget Summary 8

9 Requires preservice training and ongoing training on an annual basis of child care providers, and their caregivers, that receive reimbursement under Wisconsin Shares. Fostering Futures: Connections Count: The budget provides $200,000 in FY19 to fund the Fostering Futures: Connections Count grant program, which supports neighbors and community leaders to connect vulnerable families with young children to formal and informal community support programs. Total funding provided under the budget would be $360,300 in FY18 and $560,300 in FY19. Homeless Case Management Service Grants: THE GOVERNOR PARTIALLY VETOED THIS PROVISION. The budget provides $500,000 annually for DCF to support 10 annual grants of $50,000 to shelter facilities to provide intensive case management services to homeless families. Services would focus on providing financial management, employment, school continuation, and enrolling unemployed or underemployed parents in W-2 or the FSET program. Allowable uses also include publicprivate partnerships between local governments, religious organizations, local businesses, and charitable organizations which deliver immediate housing relocation services, including but not limited to paying rent on behalf of participants in private housing. The Department of Administration would award the grants. In-Home Safety Services: The budget increases funding for child welfare safety services by $889,800 TANF in FY18 and $1,921,600 TANF in FY19 to expand the use of inhome safety services statewide. The budget also requires counties to provide matching funds at the same percentage currently required for children and family aids funding. Child Welfare Prevention Services: The budget provides $3,900,000 annually for statewide child welfare prevention services. Current law restricts child welfare prevention services funding to Milwaukee County. The budget allows DCF to use the funding outside of Milwaukee County. Require Child Support Compliance for FoodShare: The budget restores the child support cooperation requirement in the FoodShare supplemental nutrition assistance program as a condition of eligibility and provides DCF with $140,300 GPR and $272,200 FED in FY18 to implement the change. The budget specifies that the change would not take effect unless DCF determines that the new provisions related to FoodShare eligibility, as they pertain to child support and paternity order establishment and compliance, can be implemented in a manner that is substantially state budget-neutral in regard to child support fees. The budget requires DHS and DCF to request any applicable waivers or other federal authorization necessary to allow for budget-neutral implementation with respect to these fees. The GPR funding is placed in the JCF program supplements appropriation for release under a 14-day passive review process. Supporting Parents Supporting Kids Demonstration Program: The budget provides $200,000 in FY18 and $928,600 in FY19 to support an expansion of the supporting parents supporting kids (SPSK) program into three additional counties in FY19. Final Budget Summary 9

10 Wisconsin currently receives federal child support noncustodial parent employment demonstration funding to operate the SPSK program in Brown and Kenosha Counties. The program assists low-income noncustodial parents who are unemployed and not meeting their child support payment obligations by providing partial suspension of administrative enforcement measures, assistance with job search and job skills, training on child development, and parental programming to connect with their children. Wisconsin applied for, and received, a federal waiver to continue the program into FY18. This allows Wisconsin to receive federal matching funds on state spending. In utilizing the new funding, DCF intends to change the program from voluntary participation into mandatory court-ordered participation. Department of Corrections (DOC) - Juvenile Corrections Juvenile Correctional Institutions (JCI): The budget: Allows DOC to place individuals under the age of 18 and sentenced in adult court in the JCIs. Sets the ADP at 220. Modifies the daily rate charged to counties for placements in a JCI as follows: o Maintains/adds a $6 per day add-on to the daily rate. o Adds 8.25 positions to bring the state closer to PREA compliance. o New daily rate - $390 in FY18 and $397 in FY19. The budget: o Funds 3.25 new mental health positions at Copper Lake with GPR instead of PR. o Funds nine new positions for juvenile medication administration with GPR instead of PR. Funding the positions with GPR instead of PR has the effect of not placing these costs in the calculation of the daily rate. Juvenile Investigative Reimbursement: The budget modifies the appropriation for reimbursement of investigative expenses of counties containing juvenile correctional facilities from an annual to a sum sufficient appropriation and reestimates funding in the appropriation by $18,000 annually to $36,000 annually. Department of Health Services (DHS) Nursing Home Reimbursement: The budget: Increases nursing home reimbursement rates by 2% in FY18 and by an additional 2% in FY19. Increases funding for behavioral and cognitive impairment (BEHCI) access and improvement incentives by $5 million annually ($10 million over the biennium). Increases reimbursement rates paid to ICF-IIDs by 1% in FY18 and an additional 1% in FY19. Final Budget Summary 10

11 Children s Long-Term Supports (CLTS): The budget provides funding to eliminate the existing waiting list for CLTS services by the end of FY18. The budget also makes several statutory changes related to the program: Authorizes DHS to require counties to maintain a specified level of contributions to the CLTS program; Requires DHS to determine the amount of contribution that each county is required to maintain based on a county s historical expenditures for the program; Requires counties to cooperate with DHS to determine an equitable funding methodology and county contribution mechanism for contributing to CLTS program costs, and to ensure that county contributions determined by DHS are expended for the program in the counties; Authorizes DHS to contract with a county or a group of counties to deliver services under the program. The budget also, effective December 31, 2017, repeals 2015 Act 55 provisions that specify that any funding the state retains for the provision of school-based services that exceed $42.2 million in FY16 and $41.7 million in FY17 be transferred to the MA trust fund to fund services for children on the CLTS waiting list. Childless Adult Employment and Training Waiver: THE GOVERNOR PARTIALLY VETOED THIS PROVISION. The budget: Directs DHS to request a waiver amendment to include an employment and training program for childless adults enrolled in MA. Requires DHS to submit a report to the JCF no later than three months following the final approval of the proposed waiver amendment by CMS. Specifies that the report shall include the following: (1) a description of each component of the approved waiver, including any pertinent information on DHS plan for implementation; and (2) an estimate of the impact on MA enrollment and the MA budget of the waiver provisions in the biennium and beyond. Specifies that DHS may not implement the provisions of the waiver unless the JCF meets under s of the statutes to review the report and approves the waiver. Specifies that the JCF may modify the waiver by removing one or more components. Requires DHS to implement the waiver as approved, with any modifications adopted by the JCF. Requires DHS to submit a subsequent waiver amendment to CMS consistent with the JCF s actions if necessary to implement the waiver as modified. Funding for implementation of the proposed childless adult employment and training program was removed from the budget. This would require DHS to implement the program with base funding and positions. Coverage of Institute for Mental Disease Services: The budget modifies provisions in state law that prohibit MA coverage of services provided in an institution for mental disease for persons ages 21 through 64 to permit DHS to provide MA coverage for these services to the extent permitted under federal law or under waiver agreement, if federal financial participation is available to support these services. Final Budget Summary 11

12 Personal Care Rate Increase: The budget increases the MA reimbursement rate for personal care services by 2% in each year of the biennium. The new rates would take effect on July 1, Medical Assistance Purchase Plan and EBD MA Eligibility: The budget: Income Calculation for MAPP and Other Long-Term Care Programs: Subject to federal approval, excludes medical and remedial expenditures and long-term care costs that exceed $500 per month that would be incurred by the individual in absence of coverage under MAPP or an MA long-term care program from countable income. Under current law, an individual may qualify for MAPP if the individual s net household income is less than 250% of the FPL for the size of the individual s household. The budget maintains the current income limit, but enables individuals to spend down to meet this standard. Asset Exclusion for Certain Retirement Benefits: Subject to federal approval, excludes assets from retirement benefits accumulated from income or employer contributions while the individual is employed and receiving MA benefits. In addition, excludes any assets accumulated in an individual s independence account when determining financial eligibility for the community options program, the community integration program, Family Care, IRIS, Family Care Partnership, and certain SSI Medicaid categories. Assets accrued in an independence account are excluded when determining MAPP eligibility under current law. MAPP Premium Payments: Establishes a new premium structure for MAPP participants so that each MAPP participant would pay a premium of at least $25 per month. For a participant whose individual income exceeds 100% of the FPL for a single-person household, requires the individual to pay, in addition to the $25 monthly premium, a premium equal to 3% of his or her adjusted earned and unearned income that exceeds 100% of the FPL. Requires DHS to temporarily waive an individual s monthly premiums when DHS determines that paying the premium would be an undue hardship on the individual. MAPP Proof of Gainful Employment and Earned Income: Subject to federal approval, requires that MAPP participants prove gainful employment and earned income to DHS by providing wage income or prove in-kind work income by federal tax filing documentation. To qualify as gainful income, specifies that the amount of in-kind income must be equal to, or exceed, the minimum amount for which federal income tax reporting is required. Financial Eligibility Changes for EBD Medicaid: Subject to federal approval, increases the income eligibility limit for medically indigent elderly, blind, or disabled individuals in the MA program by establishing the income threshold at 100% of the FPL. Federal Approval and Contingency: Provides that if DHS determines that a state plan amendment or waiver of federal Medicaid law is necessary to implement the premium methodology and changes to the income and asset standards, requires DHS to submit a state plan amendment or waiver request to the federal Department of Health and Human Services (DHHS) requesting these changes. Final Budget Summary 12

13 Provides that if DHHS disapproves the state plan amendment or waiver in whole or in part, DHS may maintain the current income and asset eligibility requirements, and premium methodologies for MAPP, rather than the income and asset eligibility requirements and premium methodologies included in the budget. Effective Date and Initial Applicability: Provides that the statutory changes to MAPP would take effect on July 1, Specifies that the changes relating to program eligibility and premium determinations would first apply to initial eligibility determinations and cost-sharing reviews and reviews for continued eligibility and cost-sharing on July 1, 2018, or on the first day of the fourth month beginning after the date of federal approval of the state plan amendment or waiver request, whichever is later. Lead Poisoning MA Reimbursement for Investigations and Statutory Definition: Effective January 1, 2018, the budget increases from $ to $800 the MA reimbursement rate for lead investigations. The budget modifies the statutory definition of lead poisoning or lead exposure from the current law definition of 10 or more micrograms per 100 milliliters of blood to a reduced threshold of 5 or more micrograms per 100 milliliters of blood, which is the current standard used by the Centers for Disease Control and Prevention. Birth to 3 Program MA Reimbursement for Services: The budget increases Medicaid reimbursement for Birth to 3 by allowing the Birth to 3 allocation to be used for the nonfederal share of any newly implemented Birth to 3 Medicaid services. The budget also authorizes the department to submit any Medicaid state plan amendment that increases Medicaid reimbursement for Birth to 3. The budget eliminates current law reimbursement under the Medical Assistance program for services provided by a special educator under the Birth to 3 program, also known as early intervention services, and instead allows DHS to pay the costs for services provided under the Birth to 3 program that are included in the individualized family service plan and that were not previously authorized for payment under the state Medical Assistance program. Family Care Funding for Direct Care Services: THE GOVERNOR PARTIALLY VETOED THIS PROVISION. The budget: Provides $12,500,000 GPR in FY18 and $12,500,000 GPR in FY19 in the JCF s program supplements appropriation. Requires DHS to work with the Family Care MCOs and CMS to develop an allowable payment mechanism to increase the direct care and services portion of the capitation rates in recognition of the direct caregiver workforce challenges facing the state. Requires DHS to seek the release of these funds under s of the statutes, upon CMS approval of a payment mechanism. Requires DHS to seek any federal approvals necessary to implement the plan by December 31, Final Budget Summary 13

14 Increases funding for MA benefits by $17,773,700 FED in FY18 and $17,958,100 FED in FY19 to reflect MA matching funds that would be available to support these costs. Nursing Home Bed Tax Exemption: THE GOVERNOR VETOED THIS PROVISION IN ITS ENTIRETY. The budget exempts county owned IMDs and state licensed nursing homes that are not certified to participate in Medicaid and Medicare from the state nursing home bed assessment. The budget requires DHS to seek approval from the federal government for the exemption. The exemption would take effect on July 1, 2017 or the date on which the state receives federal approval for the exemption, whichever is later. Family Care Partnership Program: THE GOVERNOR VETOED THIS PROVISION IN ITS ENTIRETY. The budget directs DHS to submit a request for a waiver from the Centers for Medicare & Medicaid services (CMS) to expand the Family Care Partnership program statewide by December 31, Under the budget, within 60 days of receiving approval from CMS, DHS shall submit a plan to expand Partnership statewide to JCF for approval following the guidelines issued in the waiver. If CMS denies the waiver request, DHS shall submit a report to the JCF outlining the reasons why the request was denied. Clinical Consultations: THE GOVERNOR PARTIALLY VETOED THIS PROVISION. The budget directs DHS to provide reimbursement for clinical consultations under the MA program, subject to federal approval. The budget repeals this provision effective June 30, The budget requires DHS to report to the JCF by March 31, 2019, on utilization of these services. The budget defines clinical consultation as, for a student up to age 21, communication from a mental health professional, or a qualified treatment trainee working under the supervision of a mental health professional, to another individual who is working with the client to inform, inquire, and instruct regarding all of the following and to direct and coordinate clinical service components: (a) the client s symptoms; (b) strategies for effective engagement, care, and intervention for the client; and (c) treatment expectations for the client across service settings. Income Maintenance Contracts: The budget provides funding ($12,393,800 annually GPR and FED) to allow CY18 and CY19 contracts to be funded at CY17 levels. IM Fraud Funding: The budget provides $500,000 annually to increase, from $1,000,000 per year to $1,500,000 per year, the amount of funding that would be budgeted for DHS to provide to local units of government to conduct Medical Assistance and FoodShare fraud prevention and investigation activities. OIG Audits of MA Reimbursements for Family Planning Services Provided by Certain Providers: The budget requires the DHS Office of the Inspector General to conduct an audit of all family planning service reimbursements paid to covered entities Final Budget Summary 14

15 under the medical assistance program for the period January 1, 2013, to December 31, 2016, and to conclude the audit no later than June 30, The budget specifies that 20 percent of the total moneys received (the state s share of overpayment recoveries) from these audits would be budgeted in the biennium to supplement each of the following appropriations: (a) DHS fraud and error reduction activities; (b) public health general aids and local assistance; (c) community aids; (d) grants for community programs; and (e) services for sex-trafficking victims administered by DCF. FoodShare Employment and Training Program Universal Referrals: THE GOVERNOR VETOED THIS PROVISION IN ITS ENTIRETY the Governor is directing DHS to develop a protocol for better informing all FoodShare applicants and participants about FSET. The budget requires income maintenance workers to provide all FoodShare applicants and participants information about the FSET program at least once every six months, in addition to maintaining the current practice of referring all ABAWDs to FSET regardless of whether they need to meet the work requirement. FSET Pilot for Able-Bodied Adults with Dependents: THE GOVERNOR PARTIALLY VETOED THIS PROVISION. The budget creates a pilot program, designed to implement mandatory FSET participation for certain able-bodied adults with dependents (school-age children), to operate from April 2019 through the end of June The budget requires that the pilot region selected by DHS be composed of no more than two FSET vendor regions. The budget requires an evaluation of the pilot program and makes statewide expansion contingent on the evaluation. The budget transfers the GPR funding that would be provided under this item from DHS to the JCF program supplements appropriation. The budget requires DHS to submit a detailed plan for implementation of the pilot to the JCF in order to seek release of funds for this provision under s FoodShare Eligibility Asset Limit: The budget prohibits individuals who are not EBD from participating in the FoodShare program in any month in which the household of which the individual is a member has liquid assets that exceed $25,000. The budget specifies that the asset requirements would first apply to initial applications and redeterminations for FoodShare benefits that occur after July 1, 2018, or the date FNS approves the state s waiver request, whichever is later. The budget expands current statutory authority for DHS to use the financial record matching program for the FoodShare program, in addition to current authorization for Medical Assistance. NOTE: The JCF deleted all funding and positons in the budget related to this item. FoodShare Eligibility Child Support and Paternity Compliance: The budget: Makes statutory changes related to cooperation in establishing child support orders, not falling delinquent on child support, and paternity establishment as eligibility requirements for the FoodShare program. Places the reestimated GPR funding amounts into the JCF s program supplements appropriation and specifies that these funds could be released upon request of Final Budget Summary 15

16 DCF or DHS under a 14-day passive review process for the purpose of implementing the proposed FoodShare eligibility provisions. Specifies that the statutory changes in the budget would not take effect unless DCF determines that the new provision related to FoodShare eligibility, as it pertains to child support and paternity order establishment and compliance, can be implemented in a manner that is substantially state budget-neutral in regard to child support fees. Requires DHS and DCF to request any applicable waivers or other federal authorization necessary to allow for budget-neutral implementation with respect to these fees. Requires DCF and DHS to notify the Governor and the JCF, upon making such a determination, and specifies that the new provisions would take effect on the first day of the sixth month beginning after the date of DCF s notification. Expunging Unused FoodShare Balances: The budget: Requires DHS to remove all FoodShare benefits electronically and store the benefits offline for accounts that are inactive for a minimum of six months. Provides that accounts would be considered inactive if, for a period of six months or longer, an individual or household that is receiving FoodShare benefits through an electronic benefit transfer system uses no benefits that have been posted to the individual s or household s account. Requires that benefits stored offline must be made available to the individual or household again within 48 hours after a request by the individual or a household member to restore the benefits or upon reapplication for FoodShare. Requires that DHS attempt to notify the affected individual or household before benefits are removed and describe the steps the individual or household must take to get the benefits returned to the account. Requires DHS to permanently expunge any benefits that have not been used after a period of one year. Allows the implementation of this provision only if DHS seeks and obtains any necessary approvals from the U.S. Department of Agriculture to implement this provision. Youth Crisis Stabilization Facility: THE GOVERNOR PARTIALLY VETOED THIS PROVISION. The budget creates a definition and certification process for youth crisis stabilization facilities. The budget also: Specifies that the funding (at least $1,245,500) for youth crisis stabilization facility grants would be provided on a one-time basis in the biennium from the appropriation that funds the general operations of the state mental health institutes. Deletes the Department s authority to transfer funds from the MHI PR appropriation for the youth crisis stabilization facility after June 30, Requires DHS to include in its budget request a proposal to provide ongoing GPR funding for the youth crisis stabilization facility. Final Budget Summary 16

17 Creates a sum-certain appropriation for making youth crisis stabilization grants and authorizes DHS to transfer funds to that appropriation. Authorizes DHS to transfer the amounts shown in the appropriation schedule for this appropriation from the mental health institutes PR appropriation. Places funding for the youth crisis stabilization facility in the JCF s supplemental appropriation. Specifies that DHS may submit a request under s of the statutes to release the funding for youth crisis stabilization grants. Specifies that any such request must be submitted prior to DHS soliciting proposals for grants and must include a description of the Department s plan for distributing grants, including the conditions that the Department would specify for the expenditure of grant funds and the criteria the Department proposes to use for selecting grantees. The JCF may approve or modify and approve the plan submitted by the Department. Peer Run Respite Center for Veterans: THE GOVERNOR PARTIALLY VETOED THIS PROVISION (funding source appropriation-related). The budget provides $450,000 and authorizes DHS to make payments to an organization that establishes peerrun respite centers that provide services to veterans who are experiencing mental health conditions or substance abuse. The budget authorizes, on a one-time basis, a transfer of $450,000 in FY19 from the mental health institutes institutional operations appropriation to fund the peer run respite center. The budget requires DHS to include in its biennial budget request a proposal for providing ongoing general purpose revenue funding for a peer-run respite center that provides services to veterans. Mental Health Institutes Program Revenue Surplus: THE GOVERNOR VETOED THIS PROVISION IN ITS ENTIRETY. The budget requires DHS, at the close of each even-numbered fiscal year, to determine the amount of the unencumbered balance in the program revenue appropriation account for the state mental health institutes and provide this information to county and tribal human services agencies; requires DHS, if the amount of the unencumbered balance exceeds 17% (two months) of the expenditures associated with the mental health institutes funded from that appropriation in the evennumbered year, to include in its next biennial budget request a proposal to use the amount exceeding the 17% balance for mental health services during the following biennium; requires the Department to consult with county human services agencies in developing a proposal for the use of the surplus funds. Videoconferencing for Court Hearings in Civil Commitment Proceedings: The budget modifies provisions relating to court hearings conducted under Chapter 51 to specify that if a person who is the subject of a hearing is detained in a facility that is more than 100 miles away from the courthouse where the hearing is held, the court may conduct the hearing by videoconference if the detention facility has videoconferencing capabilities that meet the current law technical and operational standards used for circuit courts, except that the hearing may not be held by videoconference if both the corporation counsel and the counsel representing the subject object to holding the hearing by videoconference. The budget specifies that this provision does not preclude a court from holding a hearing by videoconferencing in other circumstances. Final Budget Summary 17

18 Supervised Release of Sexually Violent Persons: THE GOVERNOR VETOED THIS PROVISION IN ITS ENTIRETY. The budget modifies statutory requirements relating to plans for supervised release of sexually violent persons (SVPs) and representation of SVPs by the State Public Defender as follows: Specifies that if a court finds that an individual has met all the criteria for supervised release, the court must order the county of the person s residence, as determined by DHS, to prepare a report to submit to DHS. Requires the county to create a temporary committee to prepare the report, consisting of: (a) the county human services department; (b) a representative from DHS; (c) a local probation or parole officer; (d) the county corporation counsel or his or her designee; and (e) a representative of the department of the county that is responsible for land use planning or the department of the county that is responsible for land information. Specifies that the report would identify an appropriate residential option in that county while the person is on supervised release and demonstrate that the county has contacted the landlord for that residential option and that the landlord has committed to enter into a lease. Lists the factors a county must consider when identifying an appropriate residential option. Specifies that the county must consult with a local law enforcement agency having jurisdiction over the residential option; permits the law enforcement agency to submit a written report that provides information relating to the residential option. Requires the county to submit its report to DHS within 120 days following the court order (180 days within the first 12 months). Provides a penalty if a county fails to meet the 120 day timeline. Requires DHS, within 30 days after the court orders the county to prepare a report, to determine the identity and location of known and registered victims; authorizes the county to consult with DHS on other matters while preparing the report, and requires DHS to respond as soon as practically possible. Child Psychiatry Consultation Program: The budget increases funding for the Child Psychiatry Consultation Program by $500,000 annually. Dementia Care Specialists: The budget provides $893,000 in FY18 and $2,256,000 in FY19 to maintain ongoing support for the 19 current dementia care specialist positions through June 30, 2018, and to fund 24 dementia care specialist positions, on an ongoing basis, beginning July 1, Communicable Disease Control and Prevention Grants: The budget incorporates the statutory provisions of 2017 Assembly Bill 293 into the budget, and provides $500,000 GPR annually for DHS to provide as grants to local public health departments to control and prevent communicable diseases as follows: Provides $500,000 annually, in a continuing appropriation, for DHS to distribute as grants to control and prevent communicable diseases. Permits local health Final Budget Summary 18

19 departments to use grant funds for disease surveillance, contact tracing, staff development and training, improving communication among healthcare professionals, public education and outreach, and other infection control activities which local health departments are required to undertake in accordance with Chapter 252. Specifies criteria DHS must consider when determining the amount of grant funding to distribute to each local health department. These criteria would include: (a) base funding amount, with each local health department guaranteed at least some level of base funding; (b) general population; (c) target populations; (d) risk factors; and (e) geographic area, including consideration of the size of the geographic area served by the local health department or the density of the population. Provides DHS discretion in how these criteria are applied, including in determining what level of base funding to provide to each local health department. Requires local health departments receiving funding under this program to submit biennial financial statements to DHS on their use of the funds, with the first such statement due January 1, JUDICIAL AND PUBLIC SAFETY Treatment Alternatives and Diversion Program (TAD): The budget provides $250,000 PR annually for TAD during the biennium. These funds will be used to support TAD grants to counties that do not currently receive a grant under the TAD program. These PR funds will be transferred from the Attorney General s discretionary settlement fund in Pay Progression: The budget provides increased funds for salary increase for assistant district attorneys (ADAs) and deputy district attorneys (DDAs). Funding for will be $1,005,700 for fiscal year and $2,606,000 for fiscal year These funds provide $1.97 per hour average annual increase for eligible ADAs and DDAs under the pay progression plan. Judicial Compensation: The budget increases compensation reserves in for a 2 percent salary increase for judges and justices on September 30, 2018 and another 2 percent increase on May 26, Funding for judicial salary increases will be provided in compensation reserves. Prison Contract Bed Funding: The budget provides $8,630,500 annually for prison contract beds. The total number of project beds anticipated is 1,239 annually which includes the need for temporary placements for extended supervision or temporary lockups which can be within a county jail. With the expansion of capacity for the Racine Youthful Offender Correctional Facility and the expansion of Earned Release, the number of contract beds will decrease to 1,109 in and 997 in Expansion of Opening Avenues to Reentry Success (OARS): THE GOVERNOR PARTIALLY VETOED THIS PROVISION. The budget provides $330,400 in GPR Final Budget Summary 19