June 26, 2013
Posted June 2013
AIDS INSTITUTE BUDGET REDUCTIONS – 2013 AND 2014
Dear Provider – Please take a few moments to read the following information about budget reductions at the AIDS Institute:
- The AIDS Institute has been functioning in an environment of significant budget cuts, and changes not only in HIV prevention but also health care systems, for the last several years. During this time, State and federal funds have been cut by more than $40 million.
- These reductions arrive at a moment of profound change in the health care delivery system, including the shift to managed care for PLWHA, changes in Medicaid reimbursement methods and the transition of our COBRA case management programs to health homes – for example.
- In 2013-14, the AIDS Institute will see cuts totaling $38.2 million; up to $28.6 million in State and federal reductions and an additional $9.6 million in sequestration cuts.
- The State’s public health budget was cut significantly this year, with the AIDS Institute losing $5.7 million, or about 5.6 percent.
- The AIDS Institute has tried to address these challenges and absorb cuts internally wherever possible. Although 63 CDC positions have been eliminated, most through attrition, some layoffs have occurred. 23 CDC positions were eliminated in the past 2 years alone and 32 Ryan White-supported positions have been eliminated. Over 100 State positions have remained vacant for years. In addition, the AIDS Institute has forward-funded contracts to the extent possible and prioritized direct services over non-direct services. However, we are at a point where cuts to contractual services are unavoidable.
- The AIDS Institute’s plan for addressing the funding cuts involves maintaining core programs to the extent possible by imposing some targeted reductions to avoid larger across-the-board cuts, and shifting resources from areas where other funding or reimbursement is available (such as Medicaid, MRT, or New York City funds) to ensure that key priorities are funded at a level to sustain essential service delivery.