The New York State Office for the Aging (SOFA) is the State agency designated with the responsibility for coordinating and administering Federal, State, and local programs and services for the more than 3.2 million State residents who are sixty years of age or older. The mission of SOFA is to help older New Yorkers remain as independent as possible through effective advocacy efforts, policies, and programs, as well as through the efficient delivery of services directed toward this population.

This agency is included in the Health and Mental Hygiene appropriation bill.

The Executive recommends an All Funds appropriation of $177,909,400, a net decrease of $13,183,408, or 6.9 percent, which is primarily due to a decrease in General Fund Aid to Localities appropriations.

State Operations

The Executive recommends a total State Operations General Fund appropriation of $2,979,000, a net increase of $392,000, or 2.97 percent, from State Fiscal Year (SFY) 2002-03. This recommendation is attributable to two actions.

The Executive proposes to transfer from the Commission of the Blind and Visually Handicapped (CBVH), currently within the Office of Children and Family Services (OCFS), to the Office for the Aging a program within CBVH that serves elderly blind and visually handicapped individuals age 55 and older. This action reflects a proposed increase of $688,000 that is offset by a savings of $296,000 from the attrition of 8 positions within the agency.

Aid To Localities

The Executive recommends a total Aid to Localities General Fund appropriation of $58,230,400, which reflects a decrease of $13,075,408, or 18.3 percent, from SFY 2002-03. This decrease results from the elimination of various programs in the SFY 2003-04 proposed budget.

The Executive proposes to eliminate funding for the Naturally Occurring Retirement Community (NORC) Supportive Service Program, $1,200,000; Foster Grandparent Program, $300,000; Retired and Senior Volunteer Program (RSVP), $500,000; and Congregate Services Initiative (CSI), $680,000. The Executive also proposes a total reduction in respite services of $545,000, achieved through the elimination of certain programs and a decrease of 15 percent in funded programs.

In order to maximize efficiencies, the Executive proposes to consolidate and to restructure the financing of the Community Service for the Elderly Program (CSE) and the Expanded In-Home Services for the Elderly Program (EISEP) into one single program. The Governor also proposes to change the State/local contribution to the new program from the traditional 75 percent/25 percent share to 70 percent/30 percent. This action would shift a new cost to localities of $3,500,200 in SFY 2003-04.

The Executive provides $805,000 in funding for the Social Model Adult Day Services Program, a decrease of 15 percent, which continues funding for all current programs at the reduced level.

Although not administered by the State Office for the Aging, the Elderly Pharmaceutical Insurance Coverage (EPIC) Program is of special interest to the senior community. The Executive recommends various cost savings initiatives to the EPIC program in the SFY 2003-04 proposed budget. These changes, which are expected to achieve savings of $38,100,000 for the EPIC program in SFY 2003-04, include:

• a reduction in the drug reimbursement rate for all pharmacies participating in the EPIC program to the Average Wholesale Price (AWP) minus15 percent, $34,100,000;

• a 10 percent increase in fees paid by program participants, $1,500,000; and

• a 10 percent increase in deductibles paid by program participants, $2,500,000.

Article VII

The Executive proposes Article VII legislation which would:

• Repeal Section 541 of the Executive Law to eliminate the Community Services for the Elderly (CSE) Program and the Expanded In-Home Services for the Elderly Program (EISEP);

• Enact a new Section 541 to establish a consolidated Community Services for the Elderly (CSE) program;

• Restructure the financing mechanism of the new CSE program to increase the local government share from 25 percent to 30 percent; and

• Replace funding formulas, reporting and planning mandates, established in current statute, with complete State agency discretion to develop such funding formulas, reporting and planning requirements.