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Pennsylvania HIV/AIDS organizations grapple with budget cuts, recession by Matthew Ray
EDGE ContributorMonday Nov 9, 2009 As both the city and the commonwealth grapple with ongoing budget shortfalls, local HIV/AIDS organizations continue to struggle during what have proven a very rough year.
Mayor Michael Nutter announced in July the city would stop paying its vendors until the state approved its budget - vendors who include HIV/AIDS service providers and other nonprofits that receive federal, state and city funding, which is often all funneled through the city. Some organizations were forced to delay payments to their vendors until local officials restored the funding.
Meanwhile, the legislation was not only in limbo with the city budget, but state appropriations as well. Harrisburg lawmakers finally agreed upon a budget only 100 days after the state’s fiscal year began. This resolution came as a huge relief to social service agencies across Pennsylvania that went more than three months without proper funding.
Even though legislators approved a budget, some agencies may have to reduce services because of the recession and funding cuts.
State funding for HIV/AIDS programs, for example, dropped from $10 million to a bit under $7.75 million. This funding supports statewide comprehensive prevention programs that include HIV prevention planning, HIV counseling, testing and referral services, health education, and public-information programs. State officials expressed concerned, but they felt these cuts did not amount to a doomsday scenario.
"There is less money to be passed around, yes..., but, the state does a specific approval process to determine how much every individual health department will receive in each of the funding programs," Ken McGarvey, prevention manager for the state’s division of HIV/AIDS, said. "Those departments with the greatest needs will still get the greatest funding. The state also takes into account HIV epidemiology in each area, and what type of federal funding is expected as well."
McGarvey further acknowledged the funding decrease is "disappointing," but he added he believes there are alternatives.
"Hopefully by creating partnerships between the state, federal government, and private and public institutions - we can make sure that all the bases are covered."
Jane Shull, executive director of Philadelphia FIGHT, said her organization continues to evaluate how the new budget will affect its programs.
"I think everyone in the social-service community is saddened, but I don’t think there is anything that can be done about the situation," she said.
The budget also reflected a drop in Ryan White HIV/AIDS Treatment Modernization Act Part B funding from approximately $28 million to $15.6 million. Part B of the program appropriates money to all 50 States and territories that includes a base grant, the AIDS Drug Assistance Program (ADAP) award, ADAP supplemental grants and grants to states for Emerging Communities - those reporting between 500 and 999 cumulative
reported AIDS cases over the most recent five years. The Department of Public Welfare, which oversees the state’s Ryan White funding, receives rebates from drug manufacturers on a monthly basis. And it had a record number of rebate dollars last year.
"Ryan White is the payer of last resort; we can’t get to the Ryan White dollars until we spend down all of the other money," Joe Pease, director of the state’s Division of HIV/AIDS, said. "In fiscal year 2007, the state didn’t spend all of the funding allotted to it through the program. The grant awards, which are dispersed to states by the Health Resources and Services Administration, are made prior to the end of the fiscal year, so the final numbers for fiscal year 2007 were not tabulated by the time the next year’s money was released, leading to the penalization for the current fiscal year."
Pease said he feels this significant decrease will not have a serious impact on Pennsylvanians who receive assistance from Ryan White-funded programs.
On the flip side, some funding remained the same or even increased. Operational and administrative funding for AIDS Health Education remained at $4 million. The state also allocated $1.4 million for HIV/AIDS surveillance, and increased funding for housing for people with AIDS by less then $20,000.
"I think this isn’t shocking to many of us," Shull said of the budget situation. "We will all need to work together and come up with creative and positive ways to make sure all of our community’s needs are met."
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