TESTIMONY FOR COMMITTEE ON AGING 
FY2007 PRELIMINARY BUDGET HEARING
MARCH 6, 2006

The Council of Senior Centers and Services of NYC (CSCS) would like to thank Aging Committee Chair, Councilwoman Maria del Carmen Arroyo, and Finance Chair, Councilman David Weprin and their respective committees, for the opportunity to testify at today’s FY2007 preliminary budget hearing. On behalf of its 265 member agencies providing community-based services for 300,000 older New Yorkers, CSCS would like to thank City Council for its staunch support of a gamut of senior services. The continuum of services necessary to allow seniors to age in place in their homes and communities – your constituents – is both the economically right and humane investment to make in the communities you represent.

CSCS’ member agencies provide a broad array of services including multi-service senior centers, transportation, meals-on-wheels, case management, home care, adult day services, NORCs, mental health, housing with services, ESL and other immigrant services, crime victims assistance, caregiver support services, intergenerational programs, grandparents raising grandchildren supports, and other services designed to allow seniors to remain in their communities.

BASELINING AGING SERVICES FUNDING AS THE SENIOR POPULATION GROWS IS A SMART INVESTMENT: Each year City Council, advocates and senior service providers have to deal with advocating to win back needed funds allocated by City Council. The elderly population is growing, especially those over 75 and 85 in need of services. The city’s $5 billion surplus provides a good opportunity to invest in these low cost, high impact services. Providing a van to bring seniors to the doctor, to socialization in senior centers or adult day service programs, or to receive a home-delivered meal is critical to the city if it wants to curb long term care costs. Paying for insurance, fuel, repairs or driver salary is like paying the rent – if you don’t pay it, the van sits. 

CSCS also supports the baselining of the funding for all the restorations listed below. Baselining the funds allocated by City Council for FY2006 is a smart investment on the part of the city.

SUMMARY OF TESTIMONY:

1. RESTORATIONS: $ 13.6 MILLION ELIMINATED - ALL THE FUNDING ALLOCATED BY CITY COUNCIL HAS BEEN ELIMINATED:

   • $4 million – new dedicated funding stream for operation costs of vans. Each agency operating vans has received $7800 per van.

   • $1.5 million – NORC expansion

   • $1 million – reinstatement of Safe Streets/Elderly Crime Victims program. Each agency received about 40% of their prior Safe Streets funding.

   • $1 million – new geriatric mental health program (funds go to Department of Mental Health)

   • $5.6 million – City Council discretionary funds. This included an increase of $50,000 per Councilmember for senior services in his/her district.

   • $534,000 - Borough President funds cut – The BP funds had been “baselined” by Mayor Bloomberg during the 2005 budget. However, DFTA has cut a portion of the $7.5 million total BP funding.

   • $8 million – targeted reduction to meals-on-wheels – This would happen if DFTA took the Bronx meals-on-wheels program, “Senior Options” to other boroughs. It is unclear what the status of this is right now.

There are proposals to transfer SCRIE to the Department of Finance and DFTA’s I&R function to 311. The impact of this is unclear at this time.

CSCS also supports increases in the NORC and geriatric mental health programs in order to expand these important services to more seniors citywide.

2. TRANSPORTATION FUNDING -

1. Restore the $700,000 FY2006 PEG taken from the $4 million transportation funding stream. These funds are intended to pay for van repairs.

2. Restore $4 million for operating costs of vans in FY2007 budget – agencies in all City Council districts received $7800 per van to meet fuel, insurance and repair costs. The average senior service agency has three vehicles which means they received $23,400 ($7800 x 3) to pay for the increased costs.

“PIZZA AND SODA CAMPAIGN”- $4.5 million to increase funding for meals: You can’t buy a slice of pizza and soda for $1.85 or $1.89 in New York City. This is all that is allowed for raw food per meal for congregate and home-delivered meals.

To meet inflationary increases in food since 1999, the last year of increases in food allocations, 35 cents per meal more is needed:

• 13 million meals provided annually x 35 cents = $4.5 million

• This would bring it to $2.20 per meal for congregate and $2.24 per meal for meals-on-wheels.

• For every 100 meals a day provided by senior centers and meals-on-wheels programs, an additional $8750 would be added into the budgets of agencies in each City Council district. (100 x .35 = $35 a day multiplied by 250 days a year of meal service = $8750)

Trend factor for increased food costs - A trend factor, used in other programs in the city budget, would address the annual increase in food costs by automatically allocating additional funds to the per meal allotment based on the Consumer Price Index. Based on the $4.5 million it takes to meet inflation since 1999, over the past 7 years, it would cost the city less than $1 million a year to meet inflationary costs. This is less of a bite each year in the city budget than having to fund catch up dollars after many years of no funding. Most importantly, seniors will receive quality, nutritious meals.

3. BRONX “SENIOR OPTIONS” MEALS-ON-WHEELS PILOT PROGRAM – Now in its second year CSCS continues to be concerned about the quality of this program and the ability of providers to provide meals within $5 a meal which includes delivery costs. KPMG, contracting with DFTA to do an evaluation of the Senior Options program, has just begun its study. We urge City Council to remain vigilant on this issue. DFTA never funded services like friendly visiting or telephone reassurance to address social isolation issues. 

4. SENIOR CENTER RENOVATIONS - A waiver from the memorandum between City Council and OMB for senior centers is needed to exempt senior centers from the $500,000 minimum amount for city capital dollars to be used. Also, city policy not allowing use of capital dollars in senior centers in non-city owned property needs to be changed.

5. “KEEP SENIORS STANDING” CAMPAIGN – GRAB BARS LEGISLATION-
   Over the past three years, City Council legislation requiring landlords to install grab bars into the bathrooms of elderly and disabled tenants has received strong support from City Council with 40 members co-sponsoring the bill. Now is the time to pass this legislation. We would like to thank Councilwoman Arroyo for making the grab bars legislation a top priority. We would also like to give our wholehearted thanks to Councilmembers Alan Gerson and Kendall Stewart who have worked on this legislation over the past three years. The coming together of the chairs of the Aging, Housing, and Mental Health/Disabilities committees shows the strong commitment within City Council for this important legislation.

6. SUPPORTIVE HOUSING FOR THE ELDERLY - CSCS wholeheartedly supports Councilwoman Arroyo’s initiative to add a new category to those NYC residents eligible for supportive housing services – the frail elderly. Supportive housing which has been so helpful for historically mentally ill and formerly homeless New Yorkers, holds the same potential for helping frail elderly individuals remain in the community.

FULL TESTIMONY:

RESTORATIONS:

The following budget cuts need to be restored:

• $4 million – new dedicated funding stream for operation costs of vans. Each agency operating vans has received $7800 per van.

• $1.5 million – NORC expansion

• $1 million – reinstatement of Safe Streets/Elderly Crime Victims program. Each agency received about 40% of their prior Safe Streets funding.

• $1 million – new geriatric mental health program (funds go to Department of Mental Health)

• $5.6 million – City Council discretionary funds. This included an increase of $50,000 per Councilmember for senior services in his/her district.

• $534,000 - Borough President funds cut – The BP funds had been “baselined” by Mayor Bloomberg during the 2005 budget. However, DFTA has cut a portion of the $7.5 million total BP funding.

• $8 million – targeted reduction to meals-on-wheels – This would happen if DFTA took the Bronx meals-on-wheels program, “Senior Options” to other boroughs. It is unclear what the status of this is right now.

There are proposals to transfer SCRIE to the Department of Finance and DFTA’s I&R function to 311. The impact of the SCRIE transfer is unclear at this time. We have concerns about transferring DFTA’s information and referral function to 311.

CSCS also supports increases in the NORC and geriatric mental health programs in order to expand these important services to more seniors citywide.

$7800 per vehicle was added to the budgets of senior centers and other transportation providers in each City Council district - We are especially grateful for the establishment of a dedicated funding stream, $4 million, for the operational costs of the over 400 vans citywide run by senior centers, meals-on-wheels programs, NORCs and adult day service programs. It costs about $40,000 a year to operate one vehicle. Skyrocketing fuel and insurance rates have hit these agencies particularly hard resulting in some vans just sitting or being used only part time. The $7800 per van funded: $6000 for insurance, $1000 for fuel, and $800 for repairs. For example, the average senior service agency has three vehicles which means they received $23,400 ($7800 x 3) to pay for the increased costs. We are appreciative that the Department for the Aging has amended these funds into the budgets of existing transportation providers.

The FY2007 preliminary budget proposes to cut $700,000 from this 
$4 million funding stream in FY2006 as a PEG. The $700,000 was intended to be a pot of money agencies could use for reimbursement for van repairs. Of the 400 plus vehicles operated by senior services organizations citywide, 70% are five years or older. The wear and tear on city streets results in the need for repairs to keep these vans operating full time. We urge City Council to reject this FY06 PEG. With a $5 billion surplus in NYC, it is unnecessary for the administration to make this cut. The seniors depending upon the 700,000 one way rides provided by these vans each year will be the losers.

“PIZZA AND SODA CAMPAIGN”

$4.5 MILLION IN NEW FUNDING NEEDED FOR SENIOR MEALS:

INFLATIONARY COST INCREASES EAT INTO THE ABILITY OF SENIOR CENTERS TO PROVIDE THE QUALITY FOOD MEETING REQUIRED NUTRITIONAL STANDARDS:

Since July, 1999 – seven years ago – funding for the raw food costs of providing congregate and home-delivered meals has remained the same - $1.85 for congregate meals and $1.89 for meals-on-wheels. Meals-on-wheels went up to $1.89 in 2001 to pay for a new requirement – adding vitamin C enriched juice to home-delivered meals. During that time food costs increased by 18.7% 

You can’t buy a slice of pizza and soda for $1.85 or $1.89 in New York City. 

While senior center and meals-on-wheels providers do a remarkable job in providing the best quality, nutritious meals they can, common sense says that seven years of no food cost increases has to have a significant impact on their ability to purchase the quality of food they’d like to and to provide a diversity of meals. 

According to a professor of nutrition at Cornell University, in order to meet inflationary cost increases over this time based on the Consumer Price Index for food and beverages in U.S. cities, 35 cents per meal would have to be added. This is necessary just to stay even. This means that the per meal allotment for congregate meals would go from $1.85 to $2.20 and for homebound meals from $1.89 to $2.24.

• 13 million meals provided annually x 35 cents = $4.5 million

• For every 100 meals a day provided by senior centers and meals-on-wheels programs, an additional $8750 would be added into the budgets agencies in each City Council district. (100 x .35 = $35 a day multiplied by 250 days a year of meal service = $8750)

In the mid-1990’s a Congressional report on the elderly nutrition program reported that the average per meal cost nationally was funded at about $2.15. At the time, it was $1.55 in NYC. Thanks to City Council, that amount was raised to $1.85. This means that NYC, an expensive market, was behind over ten years ago compared to other parts of the country. Inflation has made food budgets even tighter. The 35 cents per meal increase addresses the loss of purchasing power due to inflation. It does not address the fact that NYC was behind the rest of the country in allocating meal funds.

The infrastructure of senior centers and other senior services organizations has lost much of its purchasing power due to stagnant budgets for at least seven years. Taken as a package, funding for the vehicles and increasing the per meal allotment directly brings much needed dollars into the budgets of senior centers in each City Council district. In its January, 2005 report, “More With Less is Impossible”, CSCS surveyed senior centers and other senior service organizations across the city. Of the 175 agencies that responded, the survey reports that increase in food costs was second only to increase in office supplies. Increases in paper goods, many used to provide the meals, was the third highest reported increase.

TREND FACTOR TO MEET INFLATIONARY COSTS OF MEALS NEEDED:
In order to meet the ongoing inflationary costs of food and to ensure that programs can meet the nutritional standards set by DFTA, CSCS asks City Council to add in a trend factor based on the Consumer Price Index, into the meal budgets of senior centers and meals-on-wheels programs. A trend factor, used in other programs in the city budget, would address the annual increase in food costs by automatically allocating additional funds to the per meal allotment. Based on the $4.5 million it takes to meet inflation since 1999, over the past 7 years, it would cost the city less than $1 million a year to meet inflationary costs. This is less of a bite each year in the city budget than having to fund catch up dollars after many years of no funding. Most importantly, seniors will receive quality, nutritious meals.

Remember – You can’t buy a slice of pizza and soda 
even for $2.20 or $2.24 in NYC – 
$4.5 million for elderly meals is a good investment

As stated in the CSCS report, “Growing Old in NYC: The Age Revolution,” the American Dietetic Association has found that for every $1 spent in elderly nutrition, a minimum of $3.25 is saved in health care costs. Investing in the meal programs is smart both for the health of seniors and the city budget – and what better time to do it when there is a $5 billion budget.

BRONX “SENIOR OPTIONS” MEALS-ON-WHEELS PILOT PROGRAM – Now in its second year CSCS continues to be concerned about the quality of this program and the ability of providers to provide meals within $5 a meal which includes delivery costs. As stated above, food costs have increased substantially since 1999. It is obvious that the quality of the food has to be impacted by insufficient funding. No “economy of scale” changes could make up for 35 cents a meal loss due to inflation – especially when the city has gone in the opposite direction and cut the meal funding. How long can this be sustained?

KPMG, contracting with DFTA to do an evaluation of the Senior Options program, has just begun its study. We urge City Council to remain vigilant on this issue. DFTA never funded services like friendly visiting or telephone reassurance to address social isolation issues which is a critical function of the meals-on-wheels program.

Only meals-on-wheels in the borough of the Bronx has taken a per meal cost cut which is unfair to frail, homebound seniors in that borough. Not only are we concerned about the Bronx, but we don’t want to see this program go to the other boroughs. 

“KEEP SENIORS STANDING” CAMPAIGN – GRAB BARS LEGISLATION REQUIRING LANDLORDS TO PUT GRAB INTO THE BATHROOMS OF THE APARTMENTS OF SENIORS AND PEOPLE WITH DISABILITIES –

Over the past three years, City Council legislation requiring landlords to install grab bars into the bathrooms of elderly and disabled tenants has received strong support from City Council with 40 members co-sponsoring the bill. Now is the time to pass this legislation. 

CSCS, on behalf of thousands of elderly and disabled people for whom falls prevention can be a matter of life and death, independence and disability and a good quality of life, would like to thank Councilwoman Arroyo for making the grab bars legislation a top priority. We would also like to give our wholehearted thanks to Councilmembers Alan Gerson and Kendall Stewart who have worked on this legislation over the past three years. The coming together of the chairs of the Aging, Housing, and Mental Health/Disabilities committees shows the strong commitment within City Council for this important legislation.

This legislation is modeled after the city’s window guard law requiring landlords to proactively contact tenants each year to see if they need window guards because small children live in the apartment. This smart and humane law has saved lives of children over the past two decades since its passage. Similarly, a grab bars law would save the lives of elderly and disabled tenants.


NEED FOR SENIOR CENTER RENOVATIONS:

Last year, City Council and OMB signed a memorandum of understanding requiring all capital projects to be a minimum of $500,000 in order to be eligible for city capital dollars. This leaves most senior centers out. This means that Councilmembers and Borough Presidents, as well as DFTA, cannot use capital dollars for senior centers unless they meet the $500,000 threshold which is unrealistic in most cases. A waiver for senior centers would ameliorate this situation.

Additionally, the city has had a policy of not allowing capital dollars into senior centers in non-city owned property. Most of these centers have been at the same site for many years and have long term leases. Some have to move for a variety of reasons like the need for bigger and more appropriate space. Other institutions in NYC not on city-owned land receive city capital dollars like museums.

These two barriers to senior centers receiving capital funding results in many centers not being handicapped accessible, having elevators or having an attractive, safe and welcoming environment for seniors. Those centers that have been renovated have seen the number of seniors attending increase. We ask City Council to resolve these capital funding issues.

SUPPORTIVE HOUSING FOR FRAIL ELDERLY:

As the city’s population ages, the need for affordable housing with services for seniors will grow as a cornerstone of allowing seniors to remain in their communities. CSCS wholeheartedly supports Councilwoman Arroyo’s initiative to add a new category to those NYC residents eligible for supportive housing services – the frail elderly. Supportive housing which has been so helpful for historically mentally ill and formerly homeless New Yorkers, holds the same potential for helping frail elderly individuals remain in the community. 

Once again, CSCS would like to thank the chairs and members of the Aging and Finance committee for allowing us to testify today. We look forward to working with you to ensure that elderly New Yorkers receive the services they require to age in place in their homes and communities with dignity.