DIDD & The American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act of 2009 (ARRA) has helped thousands of Tennesseans with developmental disabilities maintain their current level of services. Before the enactment of ARRA, for every $1 the state spent on Medicaid services the federal government would contribute $2. Now with the passage of ARRA, this match has increased. For every $1 the state spends the federal government will contribute $3.
Had this additional federal revenue not been available, the Department of Intellectual and Developmental Disabilities, like most state agencies, would have had to reduce its fiscal year 2009-2010 state dollar budget by 14.76%. These reductions would have been necessary due to the state of Tennessee's revenue collections falling short of budget. For fiscal year 2008-2009, this revenue short fall is estimated at $1.1 billion.
The following reductions were restored to the Division's fiscal year 2009-2010 budget with the passage of ARRA:
- A 6.7% reduction in funding for home and community based services for individuals with intellectual disabilities.
- Operational funding for the Harold Jordan Center, a forensic services program located on the campus of Clover Bottom Developmental Center.
- The Tennessee Family Support Program which serves 4300 families who have a family member with a severe or developmental disability
- State funding for services not provided in the Medicaid program such as hospital attendants, transportation, housing subsidies, some dental services, household establishment, etc.
- State funding for 312 non class members who are not Medicaid eligible.
- Respite services provided by the state's developmental centers
The ARRA funds allow the Division to delay implementing these reductions until Fiscal Year 2010-11 when the recovery funds will no longer be available. This 18 month period will allow the Division to review, refine and make any necessary adjustments to the proposed reductions.
Recovery funding will not be used to expand services or to increase enrollment within the Division's three home and community based waiver programs. These programs can not be expanded as the Recovery Funding is only available through December 2010. Once this increase in federal funding ends, the state will not have the recurring state funding necessary to support the expansion of services or the increase in service recipients.
DIDD has never proposed reducing the number of people receiving home and community based waiver services. Present eligibility standards will remain in place and the Division will continue with its current enrollment practices.
Governor Bill Haslam
