June 2011

Economy

As the fiscal year comes to a close at the end of June for many states, the national economy is on the edge of another recession.  Gross domestic product growth is at 2%, consistent with the rate of economic expansion across the country.  While another recession is not likely (i.e., that requires at least six months of declining national production), job growth is not as strong as many economists had hoped. Sustained growth requires net job gains of 150,000 per month and the average for the calendar year through May is less than half that number.  Ohio's 8.7 unemployment rate is percentage points better than the national average.  But state finances are not good, even with rising tax revenues.  Many states - Ohio included - have past obligations to fund.  The result is tight state budgets nationally, with Ohio's recently passed state budget no different.  In FY12, the federal government is expected to send less than $3B to states; that represents a reduction of $48B from FY11.  Making matters worse will be reductions in what Washington will cover under Medicaid and what the courts will permit relative to cuts in education. Currently, Medicaid represents 25% of spending in state budgets across the country, making it the single largest slice of the revenue pie.

Affordable Care Act

In an effort to compromise with the insurance industry, as well as with employers concerned about the costs of implementing healthcare reform, the Obama Administration is expected to cut back regulations  to appeal insurance claim denials.  In addition, they have agreed to give employers more of a voice in new regulations that are being developed.  There are not expected to be any significant changes to employer health care until after 2014, following both the implementation of state health exchanges and the presidential election.  That does not mean, however, that employees should not expect higher deductibles, higher co-pays and continued emphasis on wellness programs.  The bottom line is that the cost of health insurance continues to be a challenge for employers.  In fact, many companies are starting to analyze their data to determine if they would be better served to drop health insurance coverage and pay the penalty for not providing insurance.

Debt Commission Meetings

Vice President Biden's Debt Commission meetings came to a stop after both House Majority Leader Eric Cantor and Senate Minority Whip Jon Kyl walked out  of sessions because of tax policy disagreements. Another issue participants are dealing with are proposed cuts to entitlement programs (i.e., Medicare and Medicaid).

Priced Out: Housing Crisis for People with Disabilities

The Technical Assistance Collaborative, Inc. (TAC), in conjunction with the Consortium for People with Disabilities, released a report, Priced Out 2010. Among the key findings of this report:

• In 2010, the national average for a person receiving SSI needed to pay 112% of their monthly income to rent a modest one-bedroom unit, leaving no income for food, clothes or other necessities. People with disabilities receiving SSI were also priced out of smaller studio/efficiency rental units that cost 99% of SSI income.
• The study found that there are now 218 markets across 42 states where rents for modestly priced units exceed 100% of monthly SSI. Further, there are 30 housing markets where rents were equal to, or in excess of, 150% of SSI.
• In the dozen years since the first Priced Out study, the housing affordability gap for people with disabilities has almost doubled as the cost of a modestly priced rental unit has increased from 69% of SSI in 1998 to 112% in 2010.
• People with disabilities who rely on SSI as their primary source of income continue to be the nation’s poorest citizens. In 2010, the national average monthly SSI payment for a single individual was $703 – equal to only 18.7% of the national median income and over 20 percent below the 2010 federal poverty level of $10,830.

U.S. Department of Education

The U.S. Department of Education's Advisory Commission on Accessible Instructional Materials in Postsecondary Education for Students with Disabilities will be holding an open meeting July 11-12, 2011. A public hearing will be held from 4-9pm on July 12, 2011. The purpose of the public hearing is for the Commission to receive information from its stakeholders on issues pertaining to accessible instructional materials in postsecondary education. The public hearing session will address issues related to law, technology, the market model, and low-incidence/ high-cost materials. Additionally, the public hearing will focus on individual experiences related to accessible instructional materials in postsecondary education. The meeting will take place in Seattle, Washington. However, people can participate remotely by using the following directions:

Remote access will be provided via an Internet webinar service utilizing VoiP (Voice Over Internet Protocol). For the July 11th, 2011 portion of the meeting from 8:30 a.m.-5 p.m., the URL is https://aimpsc.ilinc.com/join/yvbmysr. The login will be available to the public starting at 8am PST. On July 12th, the URL will be https://aimpsc.ilinc.com/join/bbmtzsh for the Commission meeting from 8:30 a.m.-3:30 p.m., and the login will be open to public at 8am PST.

The URL for the public hearing portion of the meeting from 4 p.m.-9 p.m. will be https://aimpsc.ilinc.com/join/yvbmyjr. The login will open to public at 3:45pm PST. Login information is also provided via the Commission's public listserv at pscpublic@lists.cast.organd posted at the following site:

 http://www2.ed.gov/about/bdscomm/list/aim/index.html.

National Perspective is a publication of the Ohio Association of County Boards of DD, designed to update Association members on national and federal issues of interest.