First we won - then we lost!

The 30 day legislative session is over for the moment.  A
special session is promised by the governor to address health
insurance reform which failed for lack of action by the Senate. 
The special session will be SOMETIME in the summer. 

As you may have heard,  we were successful in getting $700,000 for child care rate increases into HB2, the state budget.  CYFD supported this money, but it was vetoed by the governor.  IF possible,  I will try to get the money in the special session.  The governor has said the special will only be about health insurance reform, but we can try.
 
At the beginning of the session it was revealed that the state only had $360 million in new recurring money available for expanding and maintaining state funded services.  Compared to the last several years, this is a small amount and revenue projections indicate that only $200 million will be available next year unless the economy dramatically improves.  IF this revenue prediction remains true, we will have a difficult time getting ANY rate increases or expansion of the percentage of poverty.
 
Of deep concern now is that the legislature underfunded Medicaid by at least $20 million (maybe as much as $38 million).  That could have broad impact throughout the state and impact the health care of some of your clients.
 
Nothing passed with health insurance reform because of the lack of money and the deep disagreement about how to address the issue.   As we have let you know, child care providers are EXEMPT from the health insurance requirement in the governor’s executive order.  If health insurance reform legislation requires mandatory insurance, you will not be exempt.  It will be important to let legislators know that many of you cannot afford it especially at current reimbursement rates.
 
Another bill which emerged again this is the unionizing for non licensed providers.  It was not germane this session, but will likely be introduced in the 2009 session.  This bill would allow registered homes to unionize and then negotiate reimbursement rates with CYFD.  As licensed centers and homes you do not have any right to negotiate rates with CYFD.  It might also mean that all
the rate increases that we get in the session would have to go to registered homes rather than your programs which have much higher quality.
 
We need to begin soon planing our strategy for the 2009 session as it will
be a difficult one!
 
Linda Siegle
NMCCEA Lobbyist