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14 • FRIDAY, FEBRUARY 17, 1989
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FRONTLI NES
Jewish Agencies Are Worried
By Michigan Budget Proposals
ALAN HITSKY
Associate Editor
G
ov. James Blan-
chard's budget mes-
sage last week was
better than expected for
Jewish communal agencies,
but left most in a difficult
position for 1989-1990.
Albert Ascher, executive
vice president of the Jewish
Vocational Service, said the
governor gave a 7.1 percent
increase to the Department of
Social Services (DSS). Blan-
chard's Office of Management
and Budget had recommend-
ed a 10 percent decrease.
Communal agencies af-
fected by the DSS budget in-
clude JVS, Sinai Hospital, the
Jewish Association for
Retarded Citizens, Jewish
Family Service and the
Jewish Home for Aged.
Despite the recommended
increase for the budget year
that begins. next October,
Ascher , is concerned that
federal and state mandates
for some of the increase will
hurt JVS community
workshops in Southfield and
Detroit.
The governor's proposal
would boost the state. DSS
budget' from $810 million to
$868 million, but $25 million
of the increase will be taken
to =-fund new programs re-
quired by the federal govern-
ment. Blanchard is also com-
mitted : to raising state
employee salaries by 3.5
percent.
JVS serves 400 clients in its
two sheltered workshops.
Ascher worries that state cuts
in the DSS, community men-
tal health budget will reduce
the workshop staff and the
number of clients JVS can
help. "We already have a two-
year waiting list in
Southfield," he said, "and a
longer waiting list in
Detroit."
Fewer places in the
workshops could also affect
the Jewish Association for
Retarded Citizen s , Ascher
said, because JARC residents
are placed in work activity
programs.
Joyce Keller, JARC ex-
ecutive director, said other
services like one-to-one staff-
ing in crisis situations, and
clothing and medical reim-
bursements could be hurt by
DSS cutbacks. "There would
be no new (work) places for
people staying with their
families and the quality of
service would be dramatical-
ly changed," she said.
JARC has 60 residents in
its homes, 53 in apartments,
and offers counseling and
referral services to 250 on its
waiting list.
The Jewish Home for Aged
has faced deficits the last two
years because of the low level
of state reimbursement for
Meicaid patients. Executive
director Alan Funk said he is
waiting for the state's private
and non-profit nursing home
associations to analyze the
budget ramifications before
deciding what impact the
governor's budget proposal
will have on the Home.
Funk said the governor's
budget is seeking a $38
million cutback in funding for
long term care. In addition,
the current Medicaid budget
is $70-90 million less than
billings and the federal match
to state Medicaid is being
reduced $3.3 million.
The Home for Aged com-
mitment from the Jewish
Welfare Federation this year
is $967,000. Funk expects the
Home to need an additional
$500,000 to $600,000 in
Jewish communal funding to
balance the budget for the
year that ends May 31.
In 1986-87, the Home
received $1.46 million in
Jewish communal funding. In
1987-88, the total was $1.13
million.
The profit and not-for-profit
nursing home associations
are considering filing a
lawsuit against the state_ over
the low level of Medicaid
reimbursement, Funk said.
The Home is also meeting
with DSS officials to try to
recover nursing expenses for
specialized care.
The Michigan Hospital
Association is contemplating
a similar lawsuit, said Paul
Szilagyi, vice president for
finance at Sinai. "There is
continued inadequate reim-
bursement," he said. "We are
getting 82 percent of the ac-
tual cost of services for in-
patient care, and even less for
out-patient services."
Szilagyi blamed federal and
state legislators for "passing
benefit programs that de-
mand a level of services that
they refuse to pay for . . . We
wind up having disincentives
to provide anything but a
bare-bones minimum of care.
And Sinai provides far more
than that."
Least affected by the state
budget is the Jewish Family
Service, according to JFS
President Edward Gold.
Eighty percent of the JFS
budget is provided by the
United Foundation and the
Jewish Welfare Federation;
with the rest coming from
client fees. Last year, $3,000
came from the state as reim-
bursement for homemaker
services.
But Gold cautioned that
any state cutbacks in support
of persons who use JFS ser-
vices would increase the de-
mand for those services.
The governor's budget pro-
posal will now be considered
by the state legislature. Adop-
tion of a final budget is not
expected until early summer.
Arad Predicts U.S.
Will Reverse On PLO
WOLF BLITZER
Capitol Correspondent
I
srael's Ambassador to the
United States, Moshe
Arad, says the PLO is cur-
rently "testing" the resolve of
the Bush administration in
combatting terrorism. .
In an interview, Arad ex-
pressed confidence that the
United States would break off
its talks with the PLO once
the group's continued role in
terror is conclusively con-
firmed.
"I am confident that the
United States will not engage
in and continue this dialogue
once it is proven that the con-
ditions which were set in
order to establish the dia-
logue have been violated and
are not being observed," he
said, sitting in his embassy
office. "I think that the PLO
is now testing the U.S. deter-
mination to fight terrorism."
Asked whether he could see
the day when Israel would sit
down with the PLO, Arad
replied categorically. "No," he
said, "I do not see any such
circumstance."
"The PLO is an organiza-
tion whose charter indicates
a determination to bring
about the destruction of
Israel," he continued. "Its
deeds do not tally with its
words."
Arad, who arrived in Wash-
ington in July 1987, just five
months before the start of the