NEEDY HURT BY BUDGET CUTS, OFFICIALS WARN

WAYNE COUNTY - Human service agencies in Wayne County, as well as across
Pennsylvania, are scrambling in the face of what have been called
"draconian" proposed state charity and human service budget cuts totaling
$661 million.

Mark Hoover, CEO for the Human Resources Center, Inc., based in Wayne
County, commented that the most drastic victim of these cuts, if approved,
will be the people the agencies are called to solve-whose services will
undoubtedly be reduced.

Other local agency directors said the same. Especially hard hit is the Drug
and Alcohol Commission county offices across the state. Wayne County D/A
Executive Director Bonnie Tolerico said that their inpatient treatment
funding is in jeopardy- amounting to a slash of over $206,000.

Lobby Held

Numerous representatives of agencies from the area who attended a lobby at
Allied Services in Scranton, May 16, to call for the restoration of funding
in the state budget the legislature is currently debating. The event was
sponsored by human service organizations in Lackawanna, Wayne and
Susquehanna Counties. In all, about 400 agency representatives, advocates
and clients attended.

In March, the General Assembly passed a 2003-2004 state budget submitted by
Governor Rendell, which Rendell subsequently signed. The budget slashed $128
million that had been budgeted for human services, treatment of mental
health, mental retardation treatment and drug and alcohol abuse. The new
fiscal year starts next Monday, July 1; before that date, opponents hope to
reverse the cuts, but Rendell has stated the cuts are needed in difficult
budget times.

Specifically, statewide,

* $37 million would be cut from the Human Services Development Fund (HSDF),
reducing its allocation from $39 million to only $2 million;

* $33 million would be cut from Mental Health/Mental Retardation (MH/MR)
programs, representing a five percent cut in MH. Mr. Hoover said that the
allocation for MR would remain at zero, as it has been for three years;

* $58 million would be cut from Drugs & Alcohol (D/A) programs, wiping out
the entire allocation.

Cuts in these areas would reduce funding in Wayne County by $399,960; in
Susquehanna County by $384,724; and in largely urban Lackawanna County by
$2,369,489. The total proposed cut for this region is $3,154,173.

In Wayne County, $126,945 could be cut from MH/MR programs. MH/MR funds
support counseling, case management, behavioral and therapeutic support and
specialized residences such as group homes. In the three counties, there are
12,434 people relying on MH/MR programs. There may be 943 people facing loss
of all services by this cut, and over 12 staff could be laid off.

Enormous Impact On D/A

Drug and alcohol program funding in Wayne County could be slashed by
$206,532. D/A funding helps programs that offer medical and non-medical
detox, impatient and partial hospitalization, outpatient counseling, case
management, intensive case management, crisis intervention, hotline, school
intervention and assessment services, primary prevention and education, and
tobacco cessation.

In Wayne, Lackawanna and Susquehanna combined, 2,727 people receive D/A
treatment (not including those in prevention programs). There is a potential
1,268 people who could lose the services, and 25 staff that could be cut. In
total, in the three counties, $3,154,173 would be cut, 15,756 people could
lose services and 52 jobs could be lost.

Mrs. Tolerico of the Wayne County D/A Commission, said that they never
expected this, and despite the growing caseload and the Court continuing to
require needed inpatient treatment, as of July 1st they will be faced with
how to pay for the programs that hopefully would turn around the lives of
many on addictions. Losing $206,000 is 60 percent of their annual budget.

Five years ago when she became director, they had 282 clients; this past
year they had 500. The local D/A office does an assessment and determines if
outpatient or inpatient treatment is needed. About 55 clients a year go to
inpatient programs, which normally run for 28 days. Last year, 24 of these
clients were served due to alcohol problems; the second most frequent, and
growing "drug of choice" is heroin, with 13 inpatient cases.

The impact on their budget affects treatment money for those found eligible
for Medical Assistance, and those who are coming off that aid. They are also
concerned the cut may drop funding for the "working poor" who cannot get
Medical Assistance and are not insured.

The smallest group of clients are those who have their own insurance to pay
for the treatment. It costs about $5,000 per client to attend one of the
inpatient rehabilitation programs, which are privately run.

The D/A funding cut has devastated staff morale, Mrs. Tolerico said, staff
whose jobs could be in limbo and are themselves concerned for their clients.
Those clients who want to get help are also very concerned, and are
assisting in sending letters to the legislators. Those who are currently in
inpatient programs face the uncertainty if funding will be there for them to
finish, come July 1. Seven people currently are in such facilities. Mrs.
Tolerico said they have decided to not lay off any of their staff at this
point. "I have the faith that the money will be restored," she said.
Legislators talk in public of restoring the money. She said the local
legislators have been supportive.

Some prevention program money has been tapped to keep emergency detox
services running, she said.

D/A has cut back their hours for the three-person prevention program staff
from three to two days a week; Mrs. Tolerico and their two case managers
have cut from 37.5 hours to 35 hours a week.

There's also an impact on outpatient D/A services, Rich Moroczka, director
of the Carbon, Monroe and Pike D/A Commission, said. Wayne County contracts
them to provide outpatient counseling at the Honesdale offices. He said they
have had to reduce from three counselors here to two. There is a possibility
they may have to develop a waiting list for help, as a result. There were
close to 200 outpatient admissions last year in Wayne County.

Prioritizing needs of who gets help first will be needed. Assessments of who
could be served by outpatient rather than inpatient will be all the more
critical, starting July 1, Mrs. Tolerico said.

Disabled Affected

Wayne County funding for HSDF would decrease by $50,000, from $116,483 in
the 2003-2003 fiscal year, to $66,033 for the next fiscal year, that starts
this July 1st. HSDF provides funding for families and children ineligible
for services from any other system. Some examples of services HSDF supports
are home delivery of meals and transportation for the elderly; help for
people dependent on drug and alcohol; assistance for people with mental
illness and mental retardation; crisis intervention services; support for
the homeless; counseling for the blind and adult day care.

In the three county area, 595 people receive assistance from programs funded
by HSDF; a potential 241 could face loss of all services and over 14 staff
could lose their jobs. Disabled individuals between the ages of 18 and 59 in
Wayne County are facing having to cope without the county help, Andrea
Whyte, director of Wayne County Human Services, stated. Funding through
HSDF, services for 60 to 70 disabled people will be eliminated unless the
budget cut is restored, she said.

These services include transportation, home-bound meals, home care and
visits. Mrs. Whyte said that these clients have been notified, and are very
upset with the news; they have joined the effort to lobby the legislature
with letters.

Two social workers and one staff person who helps with the information
referral service, would be cut.

Worst in 30 years

Mr. Hoover stated that in his 29-1/2 years in the human services field, this
is the worst cuts he has seen proposed by the state legislature. Mrs. Whyte
called it a "mess" in that different things are heard about the outcome. She
too has never seen such cuts in her 30 years in social services.

Most devastating is the D/A budget, Mrs. Whyte affirmed, adding that
recovery works - and if a person is not allowed treatment to recover from
addiction, there will be further burden on families and society.

Francis T. Calpin, of Condron & Company, a Scranton firm that is assisting
agencies campaign to restore the cuts, remarked that the enormity of the
cuts will eliminate the effectiveness of the agencies to the point where it
will be had to meet the minimal service requirements, and will impact on
human beings.

Mr. Hoover said that funding decrease for the MH/MR services will not hurt
the Human Resources Center, Inc. as much as their sister agencies.

He held out hope that the reviving state economy and extra funds from the
cigarette tax will help ease the fiscal turmoil the state was facing, and
allow funds to be restored for the 2003-2004 budget year. Meanwhile, human
service agencies are forced to craft their own budgets with what little is
left.