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Subject: North Carolina Legislative Update

Arc Action E-Alert

Now that the Coalition Rally is over, we need to keep the momentum going.

What we know

- The Rally did have an effect on some members.

- The Senate is still meeting behind closed doors trying to develop a

package that hurts the least.

What we think we know

- The Senate plans to bring a revenue package next week. The package will

include a mixture of small tax increases on smoking and drinking along with

other financing options.

- The Senate (depending on how fast they can move a revenue package) will

then roll out a budget bill that will be less hurtful than planned cuts, but

still very harmful.

What we don't know

- What the budget bill will have in it.

- When the budget bill will be passed.

Of course, what we know, think we know, and don't know can all change

because this is the General Assembly.

Action Needed

Calls and e-mails to (calls are better):

Senate members that are developing the budget are:

Senator Marc Basnight 919-733-6854 marcb@...

Senator Lee 919-715-3030 howardl@...

Senator Plyler 919-733-5739 aaronp@...

Senator Fountain Odom 919-733-5707 fountaino@...

Senator Tony Rand 919-733-9892 tonyr@...

Senator Bill 919-715-3042 billm@...

Senator Bill Purcell 919-715-0690 williamp@...

- Asking the Senate to avoid cuts to Mental Health/Developmental

Disabilities/Substance Abuse Services programs. Tell these legislators

that if services are cut, Mental Health Reform will not happen.

If you call, it is O.K. to leave a messageàcalls are best on Monday

afternoon, Tuesday, Wednesday and Thursday.

Other Action Needed

As you may know, the Department of Human Resources has notified Area

Programs of a rate reduction in the CAP case management rate.

Additionally,

all waiver services rates will be reduced by 5% effective

July 1, 2002. These reductions will have an impact on service quality.

We need to let Secretary Hooker Odom know that these reductions are not

acceptable. Please e-mail (carmen.hookerodom@...) or write (address

is on letter below) and have some CAP recipients do the same with the

following points

- Cutting CAP while leaving institutions virtually untouched (274 thousand

dollars cut in proposed budget) violates the principles of the Olmstead

decision.

- Cutting CAP while not cutting institutions is in conflict with her own

Reform Plan.

- Cutting CAP will have a devastating effect on Mental Health Reform.

- Most importantly, cutting CAP will harm people with disabilities and

their

families.

Below you will see a letter sent to the Secretary. Please feel free to use

this as a guide.

Finally some good (somewhat) news:

On Thursday, Senator Bill Purcell agreed to introduce a bill to provide

expansion funds for CAP-MR/DD and provide direction to the Department in

changing the program. The bill has not been introduced yet, but we believe

it will be this week. Though Senator Purcell does not believe the bill's

funding provision has any chance, it is at least something we can rally

around. A copy of the draft is also below. We will let you know as soon

as it is filed.

This is a tough year, but we must rise to the challenge so people with

disabilities and their families can realize their dreams. Let's keep up

the

good work!

June 3, 2002

Secretary Carmen Hooker Odom

NC Department of Health and Human Services

Building, Dorothea Dix Campus

101 Blair Drive

Raleigh, NC 27603

Dear Secretary Hooker Odom:

I am writing to express our dismay at the reduction of CAP Management and

Service rates announced in a memo from Dr. Visingardi and Ms. Yeager. In

addition to the obvious problem of reducing rates which will reduce

services, the Administration is sending a clear message to families and

consumers that North Carolina has no real intention of providing a real

community-based system.

As you know, our membership has supported the efforts of the Legislature

and

the Administration to " reform " the Mental Health/Development

Disabilities/Substance Abuse Services system. We have encouraged our

members to believe in this effort despite skepticism about whether North

Carolina would be willing to really fund a community system.

With this cut, it is clear that their skepticism was warranted. How does

the Administration justify reducing 20 million dollars from the program

designed to keep people out of institutions while claiming it will reform

the community system? How do you justify cutting 20 million dollars from

the only program which supports families in crisis in the their own

communities while the Administration budget only reduces Mental Retardation

Center spending by 247 thousand dollars. This cut, on top of the proposed

38 million dollars to Area Programs is a slap in the face to all North

Carolina citizens who have developmental disabilities and their families.

Mental Health Reform means nothing if the basic funding used to support

people with disabilities is cut. State and local business plans might as

well be " going out of business plans " if these cuts are sustained.

Downsizing of institutions should really be upsizing if the Governor's

proposed budget is adopted.

On behalf of our 5,000 members statewide, I respectfully request that you

reconsider your plan to reduce the CAP budget. To continue down this path

is to drive the first nail in the coffin of Mental Health Reform.

Sincerely,

Dave , Executive Director

The Arc of North Carolina

A BILL ENTITLED

AN ACT TO APPROPRIATE FUNDS FOR THE COMMUNITY ALTERNATIVES

PROGRAM FOR THE MENTALLY RETARDED AND DEVELOPMENTALLY

DISABLED AND DIRECT THE DEPARTMENT OF HEALTH AND HUMAN

SERVICES TO REVIEW METHODS OF IMPROVING THE PROGRAM.

The General Assembly of North Carolina enacts:

SECTION 1. There is appropriated from the General Fund to the

Department of Health and Human Services the sum of twenty million dollars

($20,000,000) for the 2002 û 2003 fiscal year. These funds shall be used

to continue service and resume admissions of qualified applicants for

CAP-MR/DD services.

SECTION 2. The Department of Health and Human Services shall review

the CAP-MR/DD program and recommend ways to:

(1) Implement the recommendations of the Human Resource Research Institute

report ôTodayÆs Choice: TomorrowÆs Pathö prepared for the North

Carolina

Legislative Oversight Committee on Mental Health/Developmental

Disabilities/Substance Abuse Services and the SecretaryÆs State

Plan, ôState

Plan 2001: Blueprint for Changeö.

(2) Utilize unmatched State funds to expand services through the CAP-MR/DD

program.

(3) Increase the flexibility of the program in order too provide higher

quality services in a more efficient manner.

(4) Reduce the waiting list for Developmental Disabilities services by

increasing utilization of waiver services.

The Department of Health and Human Services shall report its findings to

the Legislative Oversight Committee on Mental Health/Developmental

Disabilities/Substance Abuse Services at its first regularly scheduled

meeting following the adjournment of the 2002 General Assembly.

SECTION 3. Section 1 of this act becomes effective July 1, 2002. The

remainder of this act is effective when it becomes law.

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