Recently and unexpectedly, we learned about potential budgetary cuts from the Montana Department of Public Health and Human Services (DPHHS) that could profoundly impact our organization, and the 115 people we serve. On June 30th, we were notified that our funding is dependent upon state tax revenue triggers in Senate Bill 261. Montana tax revenue is down, and the department is planning to implement a 3.47% cut in Reach’s rates beginning October 1st, 2017. That would come out to over $105,000 per year removed from our budget, and comes on the heels of already cutting over $100,000 by eliminating 4 staff positons, and reducing hours of two others.
We were blindsided by this development, and a further reduction of over $105,000 would be devastating. The amendments to Senate Bill 261 were not brought forth until April 26th when they were adopted in conference committee, and hurried to the floors of both houses. They passed both second and third reading the very next day, and the legislature adjourned the morning of April 28th. There was no public hearing offered for this process, which undid all the community input that was given during the consideration of the budget (House Bill 2). In addition, Senate Bill 261 never included severe cuts for providers like Reach. There was only a 0.5% across the board cut to DPHHS, and no one expected this would come out of the providers’ budgets, especially not 3.47%. DPHHS is using its discretion to disproportionately cut funding for non-profit organizations that provide developmental disability services.
Because Reach’s budget is predominately comprised of compensation, this cut would only be accomplished by reducing staff and important services for their clients. But we are not giving up the fight!
