Friday, April 16, 2010

Gov. Christie Proposed Cuts to Affect Family Care Program


By Alicia Cruz
The Black Urban Times


Governor Chris Christie's $29.3 billion budget proposal may save New Jersayans approximately $53 million in all when it cuts some 12,000 resident immigrants from the Family Care programs roster, and prevents at least 39,000 parents from signing up next year if the proposal is successful in it's attempts to shut the low-cost health insurance program down due to state budget cuts, but it has many worried that the cut may increase visits to emergency rooms and decrease preventative health care for New Jersey's working poor.

The cut will not affect the 200,000 adults and 148,000 children already enrolled.

"I think we're saving pennies to spend dollars," said Sen. Brian Stack, who represents Union City, an area with a large immigrant population.

If the proposal is approved it will take effect at the beginning of the fiscal year, July 1. Debt saddled New Jersey does not have the funds to continue many programs, but the proposed cut of Family Care is a big concern for many, like Human Services Commissioner Jen Velez, who helped develop the program. Velez told the Senate Budget Committee Thursday that the proposed budget cuts totaling about $182 million were made to minimize the impact on services. But Velez acknowledged New Jersey's safety net is "being stretched considerably" by fiscal constraints.

The Senate panel spent Thursday morning reviewing the proposed budget for the state's largest agency before moving on to the plan for Labor and Work Force Development that afternoon.

Acting Labor Commissioner Hal Wirths warned lawmakers that businesses would be paying $400 more a year per employee in unemployment insurance premiums as of July 1 unless lawmakers step in. The $1 billion tax increase would be triggered because the Unemployment Insurance Fund has a negative balance. The state has already borrowed $1.6 billion from the federal government, and is continuing to borrow to meet its unemployment claims.
The once-healthy fund is in the red in large part because lawmakers have raided it of about $4.6 billion.


The Human Services budget funds five psychiatric hospitals, seven developmental centers in addition to many other services for the mentally incapacitated population at a cost of $11 billion.

Another cut eyed closely by the panel is a 50 percent reduction in the amount a family member can receive for necessities after taking in a child who would otherwise be sent to foster care. The budget proposes cutting the subsidy to $500 annually, from $1,000. The money can be requested for necessities like cribs or laptops.

Governor Christie state budget plan, unveiled last month, calls for spending cuts on property tax rebates, aid to municipalities, schools and colleges, as well as thousands of state employee layoffs.

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