Thursday, March 21, 2013

Federal Sequestration Impact on Colorado Health

MCT Illustration
The Colorado Department of Public Health and Environment Prevention Services Division is committed to honest, open and transparent communication to our partners on the impacts of the federal budget sequestration that began March 1. We will post what we know when we know it here on COPrevent.

Regardless of the current budgetary climate, we will continue to implement lean practices and focus on evidence-based interventions to ensure the health of all Coloradans.





Association of Maternal and Child Health Programs - Legislative Alert

Today (March 21), the U.S. Congress approved the Consolidated and Further Continuing Appropriations Act (H.R. 933), which provides funding for the remainder of FY 2013 (Mar. 27-Sept. 30). President Obama is expected to sign this bill into law.

This legislation locks in sequestration for FY 2013. It also provides funding for most federal agencies at FY 2012 levels minus a small across the board reduction. All grants funded via formula should expect at least a 5 percent reduction as a result of sequestration. For the Title V Maternal and Child Health Services Block Grant after sequestration and the small across the board cut AMCHP projects the new baseline for FY 2013 could be $606 million or less. Also due to sequestration, the Maternal, Infant and Early Childhood Education Home Visitation program will be cut by $20 million.

However, this bill does provide increased funding for some agencies and programs. Specifically:
• National Institutes of Health +$71 million
• Special Supplemental Nutrition Program for Women, Infants and Children (WIC) +$150 million
• Child Care and Development Block Grants +$50 million
• Head Start +$33.5 million

While an important accomplishment in this budget climate, these programs will still suffer net reductions due to sequestration. Importantly, for WIC the funding increase along with unspent SNAP transfer funds, contingency funds, unspent recovered funds means that WIC will likely be able to manage through the rest of the fiscal year without cutting any participants.

AMCHP will continue to advocate on your behalf urging Congress to provide sustained funding for the Title V MCH Block Grant and other maternal and child health programs. We are disappointed that sequestration is moving forward for this fiscal year and we hope that Congress will devleop a plan to repeal sequestration and address our nation’s long-term fiscal health without further cutting discretionary programs.


CMMS Clarification

An email was recently disseminated addressing the possibility that your grant or cooperative agreement award may be affected by the federal sequestration.   However, we were incorrect in sending out this letter to you/your organization in relation to the CHIPRA grants.  These will not be impacted by sequestration.  While it was our intent to share information as early as possible, we apologize for any confusion or uncertainty our initial email may have caused.

We thank you for your understanding and for the continued valuable work you accomplish achieving the mission of the Centers for Medicare & Medicaid Services, and in enrolling children in Medicaid and CHIP coverage.
                                                                          -Paul Schimmel, Centers for Medicare and Medicaid Services

Administration for Children and Families, HHS


As you are likely aware, in accordance with the Budget Control Act of 2011, a series of spending cuts, called sequestration, will cancel approximately $85 billion in budgetary resources across the Federal government for the remainder of the Federal fiscal year. As a partner with you in accomplishing the Administration for Children and Families’ mission, we are writing to provide you with information about what this reduction means for the funds provided to your organization. 

At this time, the Department of Health and Human Services and the Administration for Children and Families are taking every step to mitigate the effects of these cuts. However, based on our initial analysis, the overall funding for fiscal year 2013 for the Community-Based Child Abuse Prevention Program will likely be reduced by 5%. Therefore, the remaining grant awards for the fiscal year will be reduced.

Reductions for individual grantees will vary depending on the factors that are used to allocate funds in accordance with the statutory requirements. You will be contacted by the appropriate Grant Management Officer with additional details at a later point.

Thank you for your continued partnership with the Department of Health and Human Services and the Administration for Children and Families, and for your cooperation as we work together to manage these circumstances.
                                                                                                                   -Bryan Samuels, Commissioner
Centers for Disease Control and Prevention Message
March 2, 2013

As you are likely aware, in accordance with the Budget Control Act of 2011, a series of spending cuts, called sequestration, will cancel approximately $85 billion in budgetary resources across the Federal government for the remainder of the Federal fiscal year. As a partner with the Centers for Disease Control and Prevention (CDC), we are writing to provide you with information about what this reduction means for the funds provided to your organization.

At this time, the Department of Health and Human Services and CDC are taking every step to mitigate the effects of these cuts, but based on our initial analysis, it is possible that your grants or cooperative agreement awards may be affected. Examples of this impact could include: not issuing continuation awards, not awarding incremental funds on multi-year awards, or negotiating a reduction in the scope of your awards to meet the constraints imposed by sequestration. Additionally, plans for new grants may be re-scoped, delayed, or canceled depending on the nature of the work and the availability of resources.

To the extent that fiscal year 2013 funds for your grants or cooperative agreement are affected due to these budget cuts, you will be contacted by the appropriate Grant Management Officer with additional details at a later point. Please note that these budget cuts do not affect grant or cooperative agreement awards made with fiscal year 2012 resources.

Thank you for your continued partnership with the Department of Health and Human Services and CDC, and for your cooperation as we work together to manage these circumstances.
                                                                                -Sherry Smallwood, Chief Grants Management Officer


Health Resources and Services Administration Message

As you are likely aware, in accordance with the Budget Control Act of 2011, a series of spending cuts, called sequestration, will cancel approximately $85 billion in budgetary resources across the Federal government for the remainder of the Federal fiscal year.  As a partner with the Health Resources and Services Administration ( HRSA), we are writing to provide you with information about what this reduction means for the funds provided to your organization.

At this time, the Department of Health and Human Services and HRSA are taking every step to mitigate the effects of these cuts.  However, based on our initial analysis, the overall payments for the fiscal year for our formula programs will likely be reduced by 5%; therefore, the remaining payments for the fiscal year will be reduced to reflect the new total for your program.

To the extent that your grant is affected due to these budget cuts, you will be contacted by the appropriate Grant Management or Project  Officer with additional details at a later point.  

Thank you for your continued partnership with the Department of Health and Human Services and HRSA, and for your cooperation as we work together to manage these circumstances.
                                                         -Michael J. Nelson, Office of Federal Assistance Management, HRSA


Office of Management and Budget Report
March 1, 2013

The Office of Management and Budget (OMB) on March 1 issued a sequestration report to the Congress for fiscal year (FY) 2013 as required by the Balanced Budget and Emergency Deficit Control Act. This report provides calculations of the amounts and percentages by which 
various budgetary resources are required to be reduced, and a listing of the reductions required for each non-exempt budget account. 

Health care related cuts include $209 million from the Food and Drug Administration, $289 million from the Centers for Disease Control and Prevention and $1.5 billion from the National Institute for Health.

The law requires the President to issue a sequestration order today (March 1) canceling $85 billion in budgetary resources across the Federal Government for FY 2013. Specifically, OMB calculates that, over the course of the fiscal year, the sequestration requires a 7.8 percent reduction in non-exempt defense discretionary funding and a 5.0 percent reduction in non-exempt non-defense discretionary funding. Because these cuts must be achieved over only seven months instead of 12, the effective percentage reductions will be approximately 13 percent for non-exempt defense programs and 9 percent for non-exempt non-defense programs. 

View or download the full report HERE

White House Fact Sheet

According to a White House fact sheet on sequestration, Colorado will lose approximately $480,000 in funds to help upgrade its ability to respond to public health threats including infectious diseases, natural disasters, and biological, chemical, nuclear, and radiological events. In addition, Colorado will lose about $1.3 million in grants to help prevent and treat substance abuse, resulting in around 3,500 fewer admissions to substance abuse programs. And the Colorado State Department of Public Health and Environment will lose about $212,000, resulting in around 5,300 fewer HIV tests.

Maternal and Child Health (MCH)

The federal Health Resources Services Administration and the Maternal and Child Health Bureau have not provided any information or guidance to states about the scope or magnitude of the proposed budget cuts.  Reductions of 5-9% have been noted in the press. In addition, it is not known what cuts (if any)  federal agencies will absorb internally, which impacts the percentage that may be passed on to states.


As soon as we have more information, we will be in contact with you.  As always, thank you  for your ongoing partnership and commitment to MCH.  We are looking forward to seeing many of you next week at the annual MCH meeting.  Hopefully, we will have some updated information to share at that time.
                                                 -Gina Febbraro, MCH Unit Manager and Karen Trierweiler, MCH Title V Director
Women, Infants and Children (WIC)

Federal and Colorado state officials are urging caution in the aftermath of a Congressional delay to address spending cuts that could impact funding to Colorado Women, Infants and Children (WIC) programs, telling state and local agencies not to stop providing services to eligible program participants.

The U.S. Department of Agriculture (USDA) reports that sequestration cuts reduce funding for USDA programs by nearly $2 billion in fiscal year 2013, potentially impacting 600,000 low-income women and children nationally who could receive nutrition assistance and associated nutrition education and breastfeeding support through the WIC program.

The Continuing Resolution that WIC and many other federal programs rely on for funding runs through March 27, 2013. The USDA and state officials are asking state and local agencies to refrain from taking any actions to limit access or reduce the number of eligible persons receiving benefits through the end of March.

The USDA is telling us that we may not know our allocation for the remainder of the year until the end of March. This means that it may not be until that time that we know if any additional cuts to local contracts are needed or if we have sufficient food funds to serve the current number of participants. USDA staff are working to secure contingency and potential reallocation funds, to combine with whatever FY2013 allocation is established, to mitigate any potential cuts. State staff are doing all they can to manage costs and minimize any potential impacts to local agencies.

Agencies providing WIC services should be cautious with expenditures and hiring decisions and to assure participants they are not at risk of losing program benefits.
-Patricia M Daniluk, MS, RD, Director, Nutrition Services Branch, WIC Program

Women's Wellness Connection (WWC):



                                                                                                                                   -One Voice on Cancer


No comments:

Post a Comment