On Wednesday, February 23, 2011, Tom Pollock and Robin Theis, on behalf of the Long-Term Care Imperative, gave testimony to the House Health and Human Services Finance Committee about Governor Dayton’s proposals for older adult services. In their testimony, they outlined how Governor Dayton turned his back on the state’s most vulnerable adults when he proposed a biennial budget that cuts $87 million out of vital programs that ensure that Minnesota’s poorest seniors have access to care. These cuts amount to almost 8 percent to nursing homes and assisted living establishments.

In their testimony, they emphasized that Minnesota’s nursing homes and assisted living providers contribute over 112,600 jobs and over $6.7 billion to the state economy. Over 70 percent of providers’ budgets go to wages and benefits for their employees. The governor’s proposed cuts of nearly 8 percent to nursing homes and assisted living establishments undermine this economic engine and will directly lead to increased unemployment for caregivers.

If Governor Dayton’s proposal were to become law, it will impact the caregiver wages and benefits and could force additional job loss. Also, nursing facilities on the brink of closure are certain to go over the edge if these reductions become law. In rural communities the closure of nursing homes—often the top employer in town—means, in effect, the closure of these small towns.

In addition to the sizeable cuts, the governor proposed a massive $28 million increase in the Medical Assistance surcharge on seniors residing in nursing homes. The surcharge is a true “Granny Tax” that does not go back to providers, but instead is diverted to other budget priorities.

Additionally, they emphasized that the compounding effect of the previous cuts to Elderly Waiver—combined with the proposed new cuts in Elderly Waiver—could mean that nursing homes could be the only option left for thousands of low-income Minnesota seniors.

The testimony emphasized the devastating impact of the cuts, and reaffirmed the point that the cuts proposed by Governor Dayton represent $71.4 million in lost economic activity for Minnesota at a time when the state’s chief executive should be focused on economic recovery.

This testimony came on the first of three days of scheduled testimony regarding the cuts in the Governor’s budget.

Toby Pearson
952.851.2480
tpearson@careproviders.org

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