DRO Legislative Update: February 17, 2012

State Budget Action

Last week took a surprising turn as Governor John Kitzhaber released his own version of how to balance the state budget. In a statement, Gov. Kitzhaber commented: “I am proposing strategic and targeted reductions to rebalance the state budget with a focus on putting limited resources where they can do most good.  We must maintain critical services…”  Some legislators were encouraged by the Governor’s involvement, while others commented that his proposals complicated the current budget negotiations.

Disability Rights Oregon is supporting the DD Coalition and others in continuing to lobby legislators to avoid a possible 4% reduction in DD services that are planned for March.  On Thursday, many people with disabilities, their families and supportive organizations joined at the State Capitol to protest cuts to DD services in what has been called, “DD Advocacy Week”.

Proposed cuts to DD services for residential, vocational and brokerages that were originally scheduled for October 2011 were pushed back to March 2012 in hopes that a DD Provider Assessment would pass in February.  Although efforts continue around this legislation, advocates are also pushing for a “budget note” or another appropriation from the Legislature to eliminate the reductions or push it back to September.  This would buy the Legislature time to apply for a waiver from the federal government allowing the state to get additional dollars.

DRO is also supporting a broad coalition of mental health advocates who are fighting to preserve the Dammasch Trust.  The Trust was created with proceeds from the sale of Dammasch State Hospital in order to fund community housing for adults with mental illness.  State law that created the Trust says: "At least 95 percent of the sale proceeds shall remain in the account in perpetuity."  Advocates are concerned that using Trust money for other purposes will not only violate the clear dictates of the law but will undermine efforts to serve Oregonians with mental illness in their communities.

Coordinated Care Organization Legislation Moves Forward

On Tuesday, Senate Bill 1580 passed the Oregon Senate.  A majority component of Gov. Kitzhaber’s reform package, the bill establishes a coordinated delivery system using “coordinated care organizations” that will help drive down health care costs and produce better outcomes for Oregon’s 600,000 Medicaid beneficiaries.  According to the Governor and outside fiscal analysts, passage of SB 1580 could help the state secure up to $2.5 billion in federal funds, which could definitely help fill budget holes.

Senator Elizabeth Steiner-Hayward, the newest member of the Senate, stated: “the bill would bring the state closer to the day where every Oregonian has access to high-quality, affordable health care.”  SB 1580 now awaits action by the Oregon House.

Cleft Palate Legislation Passes Oregon House

Last Thursday, House Bill 4128 passed the House floor unanimously (57-0).  The bill requires private group and individual health benefit plans to cover medically necessary dental orthodontic services for treatment of craniofacial abnormalities (specifically cleft lip and palate cases). Chief Co-sponsors Rep. Val Hoyle and Rep. Jim Weidner both spoke in favor of the bill.  The bill now moves to the Senate and is expected to pass.

HB 4128 helps families of those born with craniofacial abnormalities by simplifying the costs of treatment that often force the family to delay needed treatment. A child born with a cleft frequently requires several different types of services over a number of years with treatment often beginning in the first months of life.  Absent treatment, these children may have real and lasting challenges, like breathing, social integration, hearing, speech and language abilities. With proper and timely treatment, a child with an oral cleft can have the same opportunities in life as other children.

Deadlines, Deadlines and More Deadlines

This week marks some important deadlines in the 2012 Legislative session.  All committees must schedule public hearings and work session by Tuesday, February 21st.  All work session must occur in the second chamber by Thursday, February 23rd.  Legislators are planning on working next weekend and adjourning by February 29th.