Iowa Democrats decry Branstad health-care item vetoes

Legislative Democrats expressed dismay Friday over Gov. Terry Branstad's decision to veto money for mental-health programs and home and community-based services for Iowans with disabilities in two fiscal 2014 budget bills.

In finalizing work Thursday on the new state budget to take effect July 1, Branstad used his item-veto authority to block the transfer of $13 million to the risk pool administered by the Iowa Department of Human Services for payment of mental-health costs at the county level. He also nixed $8.7 million intended to whittle down the waiting list for medical assistance home and community-based services waivers.

The governor said the Iowa Health & Wellness Plan, which he signed Thursday subject to federal waiver approval that expands health-care coverage to thousands of low-income Iowans, will provide more access to high-quality health-care programs when it is implemented next Jan. 1.

In his veto messages, Branstad “counties are already receiving additional funding aiding the redesign of the mental-health system,” which is transitioning to a network administered regionally to deliver services locally. He said mental-health services covered by the risk pool “will be fully funded by federal dollars which greatly reduces the demand on county mental-health funds.”

Branstad said counties already are receiving $11.6 million in transition funds and $29.8 million in equalization funding, as well as $110.7 million to be collected statewide in property taxes to support mental-health services. “The additional risk pool funding is not necessary at this time,” he concluded.

However, Sen. Jack Hatch, a Des Moines Democrat eyeing a 2014 gubernatorial run, called Branstad's action “short-sighted” and urged his colleagues in the split-control Legislature to consider restoring the vetoed money with a supplemental appropriation when lawmakers reconvene next January.

“These vetoes not only put undue pressure on local budgets, they hurt the most vulnerable among us,” Hatch said Friday. He said the “ill-advised veto” of mental-health risk pool money “has the effect of forcing county supervisors in affected counties to find ways to replace funds we promised to them. Property tax increases at the local level are more likely because of this veto.”

Sen. Rob Hogg, a Cedar Rapids Democrat also mentioned as a possible 2014 gubernatorial candidate, said “there was absolutely no need” for Branstad to veto money for the mental-health safety net given the state's budget surplus and concern for improved mental-health services to enhance public safety in the wake of shooting in Connecticut and Colorado.

“With the item veto, counties and community providers will once again struggle to provide basic mental health services,” he said.

Hatch, co-leader of the House-Senate health & human services budget subcommittee, said the possibility of future funding for people with disabilities who receive home and community-based services – including up to 5,000 Iowa families of people with developmental disabilities, brain injury and mental illness – does nothing for adults with disabilities currently on waiting lists for services to allow them to live independently in their homes and communities.

However, in his item-veto message with Senate File 446, Branstad said “past history demonstrates that funding specifically earmarked to buy down the waiting list is not a successful long-term solution.”

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