Vol. 7, No. 2 Spring 1999	Previous Issues Subscribe to AT Messenger Download PDF Viewer
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Federal Update for Older Persons, Part II: Clinton Administration's Proposed FY 2000 Budget

by Laura J. Waterland, Esquire, Staff Attorney, Disabilities Law Program

President Clinton's proposed FY2000 budget contains a number of exciting provisions designed to assist the elderly and their caregivers in maintaining independence at home. The FY2000 budget represents a significant package of employment, housing, and health initiatives for the elderly and people with disabilities.

1. National Family Caregivers Support Program.

The National Family Caregivers Support Program, strongly advocated by Vice President Gore, would fund states to create "one-stop" shops providing information and referral, caregiver counseling and training, respite care, and other services. The Budget projects spending $125-million-a-year for five years. The program would be administered through the federal Administration on Aging.

2. Long-Term Care Tax Credit.

A proposed $1,000-a-year federal tax credit is designed to compensate for a wide range of formal and informal long-term care arrangements. This proposal is estimated to cost approximately 5 billion dollars over five years, and to assist 2 million Americans: 1.2 million elderly, 500,000 non-elderly, and 250,000 children.

A person would qualify for the credit if he or she was unable to complete three or more activities of daily living. The credit will most likely be claimed by spouses and other relatives of people needing long-term care. The credit is available based on certified need for long-term care, rather than incurrence of expenses. The proposal recognizes the value and cost of home and community care arrangements as well as care provided in institutional settings.

3. Assisted Living and Subsidized Housing Initiatives.

In a move which recognizes that low-income seniors need a broader spectrum of community-based housing options, the Budget proposes $100 million in competitive grants to convert existing 202 properties (subsidized housing for the elderly and disabled) to assisted living properties. The properties would provide 24-hour staff, two meals per day, and Medicaid home and community-based services or personal care services for Medicaid recipients and accessible services for non-Medicaid eligible residents through local and community providers. The Budget also proposes a new Section 8 housing voucher program to target units within low income housing projects for extremely low income elderly.

4. Medicaid Community-Based Long-Term Care Option.

This program would give states more flexibility in offering Medicaid coverage to individuals who choose to stay in the home or community instead of an institution. This program, designed to remove Medicaid's "institutional bias," would allow states to expand community-based Medicaid to people with income up to 300% of SSI limits.

5. Assistive Technology Funding.

For seniors with disabilities who want to work, FY2000 proposes two initiatives. One is a $1,000 tax credit for individuals with disabilities to help cover the costs associated with employment, such as special transportation and assistive technology needs. The second initiative proposes that $35 million be used to accelerate the development of information and communication technologies which can improve the quality of life for people with disabilities and enhance their ability to work.