Despite stimulus, MRDD still plans to cut costs

By William k. Alcorn

AUSTINTOWN — Federal stimulus money could just about make up for state subsidy cuts suffered by the Mahoning County Board of Mental Retardation and Developmental Disabilities over the next couple of years.

But agency officials are continuing cost-cutting measures for further down the road.

For instance, the county MRDD is planning this spring to notify two teachers of a potential lay-off in September, while hoping that the financial picture improves by then, and they can be retained, said MRDD Superintendent Larry Duck.

He reported that the program has received reductions in state funding of $656,322 since September 2008. He emphasized that in spite of the loss of funds, which was more than twice the expected amount, there is no risk of the board’s closing any of its programs including the adult workshops or the Leonard Kirtz School.

“Cutting back by two teachers doesn’t mean we are abandoning the school. For the next two years, I don’t see us having to do anything more than operate lean and watch our spending. For 2009 and 2010, we’re not planning any more staff or any program cuts. With stimulus money, I feel we can maintain,” he said.

Specifically, the stimulus money will help the program by lowering the local share of the cost of services for waiver clients.

A waiver is a form of Medicaid payment under which Medicaid regulations are waived, and in addition to health care, Medicaid pays for other client services such as social services and transportation. Medicaid provides health care for welfare recipients and other low-income people.

Duck said stimulus money will be used to increase the normal state share of 60 percent to 66.2 percent, thereby lowering the local share from the traditional 40 percent to 33.8 percent. That translates to a savings of about $500,000 to $550,000 a year, the superintendent said.

The stimulus won’t last forever, and unless the state economy improves, the state subsidy cut could continue with no other revenue stream to make up for it, Duck said at a recent MRDD board meeting.

Duck said he does not expect more state subsidy cuts before June 30, which ends the state’s 2007-09 budget. He said he does not know what will happen with funding in the next biennium budget, which is July 1, 2009-June 30, 2011.