"The country's current economic climate, along with dwindling financialsupport from the federal government, have made this year especiallydifficult," said Richman. "Despite these challenges, while we have been ableto maintain the critical safety net for individuals and families in need, inthe coming year we will renew our efforts to develop innovative ways to servethe people of Pennsylvania."

One major victory is that children with autism spectrum disorder and theirfamilies will receive unprecedented new protections to receive the servicesand treatment they need. Working with Speaker Dennis O'Brien, the departmentworked hard to pass legislation that will assure that private health insurersshoulder their fair share of covering autism treatments up to $36,000 peryear. This groundbreaking legislation will improve access to services forthousands of children and their families living with autism by building astronger provider network, and is considered one of the best laws in thecountry.

Other highlights of the spending plan include:

-- Raising reimbursement rates by $21.7 million ($10.2 million statefunds) to improve access to critical Medical Assistance services, includinghome health care services for children, dental care, and primary carephysicians;

-- Serving an additional 2,600 children in the next year by expandinginvestments in high quality pre-kindergarten through the Pennsylvania Pre-KCounts program;

-- Doubling the funding for autism services to adults from $23.4 millionto $46.4 million in state and federal funds;

-- Serving an additional 2,930 children with physical and developmentaldisabilities with Early Intervention services; and

-- Serving an additional 2,100 older Pennsylvanians and an additional1,300 people with disabilities by expanding the availability of communityservices.

The 2008-09 budget also provides a cost-of-living increase for manyproviders, including community mental health and mental retardation, communityservices for the elderly and persons with disability, and nursing homes. Thegoal of this increase is to help providers offset rising food, energy andother costs.

"The slowing economy and reduced support from Washington made this a verydifficult budget year. While I was disappointed that we were not able todeliver 100 percent of the proposals in my original budget, this budget hassignificant wins for Pennsylvania children, families and others in need ofassistance," said Governor Rendell.

"Because of the smart way we manage our programs, we were able to deliverfunding increases while other states across the nation had to resort to majorcuts," he said. "New Jersey had to close a $3 billion budget gap and did soin part by reducing hospitals and nursing homes funding by over $150 million.Florida was facing an even larger deficit, and cut payments to hospitals,nursing homes and managed care by over $500 million. California is stilldeadlocked on its budget, in part because Governor Schwarzenegger has proposedmore than $1 billion in cuts to Medicaid and social service programs."

The impact of the cuts in these others states show the need forPennsylvania to renew its efforts to hold down costs. The department believesit can save Pennsylvania taxpayers $100 million a year by paying lower priceson prescription drugs for children and families who receive health carethrough Medical Assistance. Pennsylvania can save, on average, 30 percentover what managed care companies currently spend on pharmaceuticals.

While efforts to realize these savings by making the department the singlebuyer came up short this year, slower economic growth will only intensify theneed for savings. The department is evaluating options for making sure thattaxpayers get the best possible prices and the highest possible savings.

The Governor's budget renews Pennsylvania's commitment to maintaineligibility for those applying for and receiving services through MedicalAssistance, ensures children do not experience any reduction in services,while continuing to provide for the growing number of vulnerable individualsand families in need.

Graphics, budget highlights and additional details about the 2008-09 statebudget are online at www.budget.state.pa.us .

CONTACT: Stacey Witalec

(717) 787-4592SOURCE Pennsylvania Office of the Governor