Position Statement

Governor Codey’s proposed budget includes a number of provisions that are of critical importance to the member organizations of the Catholic Coalition for a Just Budget. We acknowledge and appreciate that the proposed budget was prepared in view of New Jersey’s fiscal challenge, especially the forecasted deficit. Yet, even in this context, we agree with the Governor’s strong statement made in his budget address that the crisis should not be solved “on the backs of the poor”:

1. Include a 3.3% Increase in Community Provider Contracts and establish an annual cost of care increase based on the CPI for Urban Wage Earners for the Northeastern Region. The current budget proposal offers no increase. As a result, cost increases incurred by providers for salaries, insurance, utilities and other core expenses are not addressed. Historically, increases in the state budget for community provider contracts have lagged well behind inflation. Over the past 12 years, the Consumer Price Index in the Northeast showed an increase of 38.7 percent. Contracts for community providers increased only 19.5 percent during this same period. These lags have now created a situation where providers will be forced to reduce services at a time when they are needed more than ever. We call for a minimum of a 3.3% increase in contracts this year to begin to address this disturbing trend, with index increases thereafter.

2. Preserve and strengthen health related programs. Ensure that health related services are not compromised for our poor and vulnerable citizens:

a. Maintain Charity Care Funding at FY 2005 level, New Jersey Catholic hospitals are largely located in urban areas where the uninsured and underinsured seek needed health care when they have no place else to turn. The latest figures available (2003) show that NJ Catholic hospitals provide 23% of all charity care in the State costing over $178 million. Reimbursement from the State was over $33 million short of the costs valued at Medicaid rates. Last year’s gain in Charity Care funding was helpful, but did not solve Catholic hospitals’ fiscal crisis. The Governor’s FY 2006 budget proposes funding cuts, while our hospital costs have increased. At a time when the number of uninsured in the state is rising, the Legislature must not accept a budget containing any proposed cuts to Charity Care.

b. Strengthen New Jersey Family Care. In FY 2002 the NJ Family Care Program received national praise for its outreach to uninsured children and families as well. The cuts to the NJ Family Care in FY 2003 & 2004 should be reversed and funds appropriated so that enrollment can be reopened for both parents of children eligible for NJ Family Care and for eligible childless couples and single adults..

c. Eliminate Proposed Medicaid Co-Pays. The proposed budget includes a $1 co-pay for prescriptions and a $3 co-pay for Medicaid services such as doctor visits, homecare, chiropractic and medical day care. These co-pays are extremely burdensome for individuals who have very low-income. Research shows that co-pays will result in people in need not receiving critical medication or medical services.

3. Increase Housing Assistance. Housing costs in our state are among the highest in the nation. Housing is a basic human need. One-third of all New Jersey families live in homes that are unaffordable, overcrowded or substandard. Ten percent, or 288,000 families, pay more than half their income for housing. The rising costs of living have left many low-wage and fixed-income households paying an increasing percentage of their income on housing. Due to the scarcity of rental or operating subsidies, most new affordable housing being built is not affordable to those in greatest need. We call on the legislature to increase housing assistance by $50 million. This would give low-income NJ residents access to 8,000 additional rental assistance vouchers and a chance to afford adequate housing.