02/02/2010

The President's 2011 COLA Consolidates and Cuts VR Programs

                 NRA's Washington Wire: 


                 The President's 2011 budget, with all due respect, appears to be a conglomeration of cuts, consolidations and competitive grants. The President's budget freezes all discretionary funding in all Departments and Agencies (except Defense and Veterans Affairs) for three years.



                 Get ready, folks, Title I of the Rehabilitation Act is about to get hit with a tidal wave of consolidations, which ultimately translate into a cut in funding, especially if those consolidations are going to be counted as "new" money to satisfy the Cost of Living Allowance (COLA) to which Title I is entitled by statute.



                   Title I funding is based on the Consumer Price Index, Adjusted for Urban Areas (CPIU), which this year was a negative, as far as I can tell at this time. 



                  I took a longer look at the President's budget last night and it does NOT appear that Title I got the Cost of Living Allowance which, I believe, is mandated by statute, but this is because the CPIU was a negative this year, as far as I can tell at this time.



                  The 2011 Budget recommends the consolidation of four programs, which have had discrete funding in the past, into Title I of the Rehab Act.  These programs include, Title VI and Title III programs, including Supported Employment, Projects With Industry (PWI), Migrant and Seasonal Farm Workers and In-Service Training.  I believe the justification for this consolidation is that these programs DUPLICATE programs and supports in Title I.  I respectfully disagree with this recommendation because I believe these programs complement, rather than duplicate, programs in Title I of the Rehab Act.



                    There is recommended in the 2011 budget $25 million in new money for long-term services and supports for eligible youth in Supported Employment (which program is recommended to be consolidated in to Title I), but these are competitive grants and, as such, the money does not follow the Supported Employment program in to the Title I consolidation.



                      There is also recommended in the President's budget $60 million in Innovative Grants; once again, these are competitive grants, which are to be divided evenly between the U.S. Department of Education and the U.S. Department of Labor.  No one really knows the purpose of this recommendation although, I as your Director of Government Affairs, perceive this recommendation as possibly one of the first steps toward service integration, which may not serve VR well over the long term. 



                      Couple these cuts and consolidations with the reinstitution of the Pay-As-You-Go Rule (PAYGO), which the Senate reinstituted last week, which will make it much more difficult to advocate for additional funds for discretionary programs, and what you have is an uphill fight for funds.



                      Then, there is the proposal, which may ultimately be included in the Senate VR bill, which would set-aside $50 million for enhanced Transition outcomes, once the COLA in Title I of the Rehab Act reached $100 million.     



                     The President has promised to institute by Executive Order a Fiscal Policy Commission, the purpose of which is to take a long look at programs that are funded mandatorily.  Title I of the Rehab Act is funded mandatorily and as such will be part of the focus of this new Commission.



                  The 2011 Budget also proposes to consolidate two Independent Living (IL) programs with what they describe as overlapping purposes into one.  Currently, the Department of Education administers the IL State Grants formula program and the IL Centers. The President's budget cites that reports show that an estimated 60 percent of the formula funds are used for the same purpose as competitive funds to provide independent living services, either directly or through grants and contracts with the centers for IL and other providers.  Consolidating these two authorities, the justification states, would reduce program duplication, give States more independent living programs, hold States accountable for implementing effective service systems and improve services in areas with unmet need.



                      The National Rehabilitation Association fully appreciates that almost all programs in Federal agencies and Departments will be taking a cut or experiencing consolidation of programs, but we believe the programs that are slated for funding cuts/consolidations in the Rehab Act are proven programs that, as we said above, complement rather than duplicate, the programs under Title I.



                      The Congress will most assuredly be taking a longer look at the President's budget, as well, and we are hopeful during forthcoming hearings on the budget in both the House and Senate that some of the questions which we have on this budget will be answered.



                      Please know the National Rehabilitation Association takes these budget cuts and consolidations very seriously and we will be assertively seeking both answers to our questions and expanding our outreach to Congress on just how important these programs under all Titles of the Rehab Act are to individuals with disabilities.



                         You can help, too, by registering now for NRA's 29th Annual Government Affairs Summit, which begins on Sunday, March 14, continues on Monday, March 15, and culminates with NRA's Day on the Hill on Tuesday, March 16.