Nixon Withholds Mental Health Funding

Last week Governor Nixon announced his decision to veto or restrict over $1.1 billion from the fiscal year (FY) 2015 budget passed by the Missouri legislature.

Nearly every department will be affected by the cuts, but I spoke with Department of Mental Health (DMH) officials this week to discuss how the withholds would impact the services delivered to Missouri’s most vulnerable citizens. The Governor vetoed or restricted about $34 million from the department’s FY 2015 operating budget as passed by the General Assembly, including $12 million meant for private provider rate increases and $10 million allocated for provider rate rebasing.

The legislature worked diligently to secure a 2% provider rate increase for private entities serving individuals through programs administered by DMH, the Department of Health and Senior Services, and the Department of Social Services. These providers offer Missourians essential medical and mental health services, but the state’s rates for their work often fail to keep pace with inflation and the cost of conducting business.

Rates for providers working with developmentally disabled individuals were supposed to be rebased beginning next month. Currently, providers’ rates vary based on the year their contract began, so rebasing is designed to equalize payments between providers performing similar services.

Unfortunately, Nixon’s funding restrictions prioritized government workers over the private sector. State workers were given a 1% pay increase in the legislature’s budget, and the Governor restricted, but did not veto, these funds. If the state’s fiscal health improves, it is possible that those employed by the state will receive a pay increase while payments to private entities will remain stagnant.

The services offered by these private providers help low-income and disabled Missourians live more independent, healthy, and productive lives. In coming budget cycles, I will continue advocating for rate increases to ensure that they are compensated fairly for their work.