Budget panel's $4.7 million reduction affects spousal pay, jobs programs

The Legislature's joint budget subcommittee on human resources approved cutting $2.6 million from a spousal pay program, effectively eliminating the program, and $2.1 million from an employment initiative that helps people with disabilities obtain jobs without losing benefits such as food stamps.

The spousal pay program benefits husbands and wives who care for their spouses.

"If you are a budget cutter, these cuts may make sense," said Don Bruland, director for senior and disabled services of the Rogue Valley Council of Governments. "But if you are a service provider, they do not."

The spousal pay cut would affect 40 to 50 people, while the employment initiative cut would affect more than 200.

The subcommittee approved a two-year division budget, which even with the cuts remains at more than $410 million because of increased federal reimbursement for nursing homes and community care alternatives.

But Bruland said increased costs, particularly for lower-wage workers who provide care, will force agencies like his to trim in-home services for people who are in community alternatives to nursing homes.

"As a result, many of these people will be deteriorating and requiring more intensive care," he said. "This budget says we will not provide for them now. But this still is a real cost. The question is whether we cut them later if we need to pay for higher levels of care. Of course, the answer is no, we will have to pay for them later -- and we will have to find other ways to cut."

The subcommittee voted 5-3 along party lines, Republicans for and Democrats against. Sen. Eileen Qutub, R-Beaverton, said the cuts were prompted in part by pressures to produce more money for state aid to public schools.

But social services advocates and Gov. John Kitzhaber said neither schools nor social services need to suffer in the budget battle.

"The primary leadership strategy at this point appears to be to make advocates for each believe that the only option is to cannibalize the other's budgets," said Kathryn Weit of Portland, who spoke for the Human Services Coalition of Oregon. "We are here together to say that is totally unacceptable. This is not and should not be a `Sophie's Choice."'

The budget for senior and disabled services is the first to emerge from the subcommittee. Others, including those for mental health and the Oregon Health Plan, are scheduled soon.

Kitzhaber said again that Republican legislative leaders should produce their balanced-budget plan before negotiating with Democrats.

"I have some concerns about those cuts," he said. "You can figure out where the cuts are going to have to come from. If you look at where their expenditures are for public schools and higher education, and if they stick to their expenditure limit, it is not a pretty picture.