families network

[Guest guest]

Hello Families Network and Happy New Year!

In light of the fiscal crisis that New Jersey is facing, and very low income

revenues to the State, the Governor announced $812 million in specific cuts

to the fiscal year 2009 budget earlier this week.

Of these, the cuts to DDD equal about $45.5 million which is approximately

5% of DDD's total budget.

Here are the specifics of the cuts:

$20 million - " contract closeouts and efficiencies " (this is made up of

various efficiencies and underspending from sources across DDD's budget such

as residential projects committed but not started, vacancies, etc.)

$17 million - prior year community provider contract recoveries (DDD will be

reviewing contracts from past few years, identifying money that was not

spent but has not yet been returned to DDD, and recouping that funding)

$4.5 million - waiting list adjusted spending projection (it is our

understanding that while they are taking back about one third of the $12

million in waiting list funding, they do expect to be able to still serve

about 125 people with the remaining funding before the end of this fiscal

year)

$2 million - additional federal revenue from the waiver (this is based on

the amendments that were recently approved)

$1 million - central office & community programs equipment (freeze on all

equipment purchases for the Division and agencies)

$670 thousand - reduction in physician staff at developmental centers

$400 thousand -capital projects (stopping all capital spending at the

developmental centers)

$16 thousand - increased employee sharing for cafeteria meals

While these cuts mostly will not impact direct services, we are still very

disappointed to see this much money being cut from DDD's budget. Also,

please keep in mind these are the fiscal year 2009 cuts and are expected to

go into effect quickly. As you know, we are hearing that we might be

looking at a much scarier scenario when it comes to fiscal year 2010, which

starts in July.

As always, please don't hesitate to contact me if you have any questions and

I will continue to provide you with information as I get it.

Denbigh Dixon

Director, Family Advocacy Program

The Arc of New Jersey

985 Livingston Avenue

North Brunswick, NJ 08902

(732) 246-2525 ext.49

ddixon@...

www.arcfamilyadvocacy.org

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