The Colorado Department of Early Childhood has made the decision to postpone deep cuts to the Early Intervention Colorado program, which provides therapeutic care to young children with developmental disabilities. The initial plan was to implement a four-hour-a-month cap on services starting next week due to a $4 million budget shortfall. However, as of Friday afternoon, all cuts have been paused until further notice.
Acting Early Intervention program manager, Lenita Hartman, sent an email to program partners stating that they are actively working with the Joint Budget Committee to explore potential solutions and address the concerns raised. An update with more detailed next steps for the program will be released by the end of the day Monday or early next week.
The decision to postpone the cuts came after an emergency hearing called by the legislature’s Joint Budget Committee on Thursday. Lawmakers questioned agency officials about the budget shortfall and criticized them for not informing the committee sooner. The committee is now looking for ways to find the necessary funds to keep the services in place.
One option being explored is redirecting underutilized money from the state Department of Health Care Policy and Financing to support the Early Intervention program. Chief financial officer, Jeanni Stefanik, estimated that up to $2.5 million might be available for this purpose. The Department of Early Childhood is working with the budget committee and the health care finance department to find a legislative funding solution.
At least $1 million is needed to ensure that providers who can’t bill their services to Medicaid can continue working with children who receive federal assistance. It’s unclear how much more money the program needs to prevent the implementation of the monthly service cap.
The Early Intervention program serves children up to the age of 3 with developmental delays and disabilities, with an average of 11,178 children benefitting from the program each month. The agency appropriated $87.4 million for the program, with about 70% of the funding coming from the state.
The budget shortfall was discovered just a few weeks ago, with increased caseloads and the end of stimulus funding contributing to higher-than-expected spending. The agency is looking at ways to make the program more financially sustainable, including implementing cuts and cost containment measures.
While the agency projects a $4 million shortfall, there is a possibility of a $1 million surplus due to projected underspending in other areas of the program. The agency plans to use part of this surplus to address the spending gap, but wants to ensure that essential services are covered until the end of the fiscal year.
The situation is described as a balancing game, as the agency needs to find a way to cover the costs of services not reimbursable by Medicaid. Children on Medicaid who receive care from providers not covered by the federal program require funding from the state’s general fund.
The Department of Early Childhood is working with lawmakers to find a solution that will allow the Early Intervention program to continue providing vital services to children with developmental disabilities. The agency is committed to ensuring that children on Medicaid receive the care they need, even in the face of budget challenges.
