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Continued Budget Cuts Avoid Worst Damage,
But Time for Restructuring Grows Near
Wednesday brought another round of State budget cuts that will cause harm but showed careful consideration by the Governor and the other two members of the Board of Public Works. As the State faces a large budget deficit for next year, State leaders need to consider opportunities to restructure government so that more can be done with less. Otherwise, families will suffer just when they need more help because of the economy.
The Cuts of Most Significance to Families
- $1.9 million less for substance abuse treatment and $1 million less for mental health services; these cuts may cause more families to fall into crisis and more children to end up in foster care.
- $3.2 million to keep empty vacant social services positions and $1.4 million less for retention bonuses for social workers; families are already unable to get food stamps in a timely basis because of insufficient numbers of eligibility workers.
- $1 million less for local management boards which provide important services that preserve families and reduce the need for costlier services; they are taking much more severe cuts than state agencies and contractors.
Restructuring Needed Ahead
Barring an unexpectedly dramatic economic recovery or an infusion of even more federal funding, Maryland is facing a large budget gap for the next fiscal year. Because the Governor and state legislators face elections in 2010, tax increases are less likely. The only way to mitigate the harm from significant cuts in spending is to consider significant restructuring of state government and services, including:
- Close juvenile facilities and residential programs that are not rehabilitating youth, investing some of the savings in community-based programs proven to reduce recidivism, like Multi-Systemic Therapy and Functional Family Therapy;
- Terminate contracts with ineffective group home providers and specialized foster homes, with some of the savings paying for enhanced services to parents and family foster homes so that they safely care for more children.
- Create financial incentives for Medicaid managed care organizations to provide preventative services that can lower later costs, particularly intensive care for sick babies; the State is already paying MCOs to provide post-partum care for women after difficult pregnancies, but it is unclear whether services are being provided.
- Invest in services, like home visiting programs and health care for women prior to pregnancies, which strengthen families and prevent costly later interventions; the federal government will pay for the majority of the costs.
- Shift more responsibilities to local governments so they have an incentive to invest in cost-effective preventative services, rather than paying for expensive interventions once children and families are already having problems; the State can significantly reduce the size of its child welfare, juvenile justice and educational bureaucracies.
- Pay principals and teachers for performance and taking on challenges, rather than for just working an additional year.
- Reward school districts that address academic difficulties early; the current system gives more money the longer students remain in special education or are labeled as Limited English Proficient.
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