Newton Independent
County officials and employees from across the state are descending on the state capitol today for the Second Annual County Day hosted by the Iowa State Association of Counties.
The event gives ISAC members an opportunity to promote legislation important to the citizens that live within their counties. And one issue specifically planned to be addressed today is the funding for county mental health/developmental disabilities services and what is called mental health property tax relief.
County expenditures for mental health/developmental disabilities services account for a statewide average of 17 percent of a county's expenditures, the state association of counties said in a release corresponding with its legislative day. Counties statewide have budgeted to spend $373 million on these services in the current fiscal year. The $373 million comes from three sources: county property taxes, state appropriations and federal matching funds.
The property tax dollars that counties can raise for these services are frozen at $125 milion. That amount was established in 1996 in a deal brokered by then Sen. Tom Vilsack, adopted by the Iowa Legislature and signed into law by then Gov. Terry Branstad.
Counties agreed to the frozen property tax levy in exchange for $96 million in mental health property tax relief and a promise that the future growth in the system would be funded by the state. State funding comes in two pots of money: mental health property tax relief and mental health allowable growth.
Now, 14 years later, county officials say they have lived up to their end of the bargain while the state shortchanges the deal.
According to the county association, the County Mental Health Allowable Growth Appropriation for fiscal year 2010 did not allow for any real growth. The amount originally recommended for fiscal year 2011 was about $8 million less than the amount appropriated for fiscal year 2010. The remaining amount was reduced even further by the governor's 10 percent across-the-board budget cut.
Not only has the allowed growth amount decreased, but the Property Tax Relief appropriation has also declined.
Property tax relief was central in the agreement between the counties and state in 1996 to begin to move mental health expenses away from property taxes and onto the state. In previous across-the-board cuts, this funding stream was not cut because of the state's recognition of its importance. However, it was not exempted in the governor's latest cut.
Counties have survived this year only because the federal economic stimulus legislation reduced the amount of match counties have to pay for Medicaid services. However, the federal stimulus money comes to an end mid-way through the 2011 fiscal year.
So, county officials contend, in addition to not having any allowable growth from the state for two years and a major reduction in property tax relief, counties' federal money from the stimulus package will soon dry up. That will cause significant problems in maintaining the existing levels of services, not even counting new consumers and increasing costs of providing services.
The state association is calling on the Legislature to fully fund Mental Health Property Tax Relief and to adequately fund mental health/developmental disabilities allowable growth. It supports legislation to allow counties to address the underfunding through adjustments to the levy.
"County supervisors and the community services directors who manage these services for counties have been put in a box," said Cass County Supervisor and Association President Chuck Rieken. "They increasingly have to rely on state and federal funds to provide services to their citizens - with no ability to raise additional funds locally. I understand these are difficult times for the state budget, but do we really want to turn our back on those most in need of assistance. It seems to me funding these services should be at the top of the state's priority list."
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