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Impact of state cuts on Human Service Agency

Montpelier, Vermont - January 12, 2010

A financial crisis in Vermont. After a year of cuts, the state is still facing a $150 million budget deficit next year.

The Human Services Agency serves about 1/3 of Vermonters. And it accounts for about half of the entire state budget. Clients worry they're being targeted for big cuts.

Brenda Viens is a thrifty Vermonter, growing and canning her own vegetables, for this warm winter soup.

It's not a choice, but a necessity. This 67 year old is retired on a fixed income.

Reporter Kristin Carlson asked, "Are you finding you have to watch every cent?"

Brenda Viens replied, "Oh yes."

A big expense for her and her husband -- prescriptions.

"Most are generics," explained Viens as she counted out the daily dose.

Medicare Part D picks up part of the tab, and so does the state, still leaving Viens to pay several hundred dollars a month. She successfully fought a plan last year by Governor Douglas to have seniors like her pay more, but it's expected the Governor will again propose the idea in his budget speech.

"If I had to pay for the medications," Viens said getting choked up, "There is no way I could do it."

It's not just seniors but welfare recipients also face cuts this year.

"There are going to be reductions and they are going to upset people without a doubt," said Human Services Secretary Rob Hofmann.

The agency's budget has more then doubled in the past 10 years. With state and federal funds, it's grown from $852 million a decade ago, to over $1.8 billion now.

The agency serves about 1/3 of Vermonters in some way -- covering mental health services -- health care programs, the disabled, elderly and the department of corrections.

"I don't think our benefits are overly generous," said Hofmann, "None of us would trade places with our clients. So individually I don't think the benefits are too generous, but in aggregate, they're straining the ability of our state, our tax payers, our businesses to pay for them."

The demand for services is growing, at the same time less money is coming into the state, so the agency is looking cut tens of millions of dollars. About $10-20 million could come from using technology more and being more efficient, but the bulk will come from cuts to programs.

Hofmann: "We are going to try to target our reductions so they have the least impact on the most deserving of our clients."

Deborah Lisi-Baker lobbies for a coalition of disability rights groups. She says members are very scared. Lisi-Baker is talking to lawmakers, telling them cuts are not the answer and leaders should reduce administrative costs and also look to tax increases.

There are ways to design taxes to bring in revenue that in fact in the long run saves Vermont money and saves employers money because you are sustaining the programs that prevent people from becoming poorer and needing more expensive services," said Lisi-Baker.

Brenda Viens understands the state is in a financial crisis, but hopes a balanced budget doesn't come at the expense of a program, helping to pay for life saving drugs for her and her diabetic husband.

"I get upset because I'm afraid, and I think most senior citizens are afraid," said Viens.

Details of proposed budget cuts will come Tuesday January 19th when the Governor delivers his final budget speech.

Kristin Carlson - WCAX News