Older Michiganians Day 2009 Senior Solutions to the Economic Storm

Transcription

1 The Platform Of Older Michiganians Day 2009 Senior Solutions To Help Michigan Weather The Economic Storm Sponsors

2 Michigan s economic indicators and outlook are at their lowest point since the end of World War II, placing tremendous pressure on the state s finances and service infrastructure. This year Michigan s senior population (60+) is growing at a rate of 118 per day (43,267 total), and by 2020 Older Michiganians will comprise over 22 percent of the state s population. This demographic shift will be accompanied by a corresponding rise in the need and demand for home and community-based long term care services, particularly for Medicaid programs, the state s largest payers for long term care. Michigan needs public policies, programs, and strategic investments that meet the challenges of the aging population and take advantage of the many social and economic benefits the growing senior population offers. This platform offers solutions that will save the state money, strengthen our social fabric, and enhance protections for vulnerable individuals who depend on the state for assistance. Many of today s seniors saw America through its greatest depression, fought and won several wars, and shepherded us through the greatest time of economic prosperity in our history. They are capable and willing to help Michigan navigate the storm the economic threats pose to our state s social fabric and fiscal health. A growing senior population can be an economic engine that fuels job creation in key areas of our economy, including health care and the leisure/recreation industry, making them leading growth sectors. And unlike technology or manufacturing, these jobs once created cannot easily be outsourced, or bought out and moved to another part of the country. In 2007 the sum total of senior income for the state of Michigan exceeded $35 billion, and national studies indicate seniors spend about 92% of their monthly income, most of it locally. The aging of the population will undoubtedly place a greater burden on public service systems, including transportation, health care, social services, and Older Michiganians Act programs. However, analysis indicates that there are far more economic and social benefits to a burgeoning retiree population than costs. Generally, retirees provide $4 in revenue for every $3 they cost in government services, according to University of Florida Bureau of Economic and Business Research economist David Denslow. The 2009 Older Michiganians Day Platform promotes three basic strategies that will help Michigan and its most vulnerable citizens get through this tough economic time and emerge stronger and better prepared to weather the challenges of the future. These strategies will: 1. Improve the state of Michigan s bottom line by promoting cost-saving measures; 2. Make Michigan a retirement destination of choice as part of an economic development strategy to attract and retain retirees; and 3. Protect vulnerable older adults by making strategic investments in Older Michiganians Act and other supports to help them preserve and make the best use of personal and social resources. In the last seven years, we have saved more than $178 million by expanding community-based service options for seniors and the disabled Governor Granholm s 2010 Budget Letter

3 Strategy 1 Strategy 2 Support Diversion Programs and Alternative Financing to Help the Bottom Line Michigan must act to more fully utilize the potential of alternative revenue sources and Medicaid optional programs to reduce the need for more costly Medicaid services, while offering a better balance of high quality consumer alternatives. FY 2008 investments in expanding MI Choice contributed to Michigan s first-ever reduction in annual Medicaid nursing home expenditures, saving $18 million. Strategic investments in Medicaid home and communitybased long term care options, and new revenue sources to support services without adding to Michigan s structural budget deficit, are needed. Call for Action Support the proposed increase in Medicaid home and community-based long term care funding for MI Choice by $17.4 million to address existing wait lists and promote alternatives to more expensive institutionalization. Fully fund staffing needs of the Department of Human Services Home Help program. Assure Medicaid nursing home quality by creating incentives for consumer directed quality care. Support alternative financing for Senior Care services through creation of an income tax check-off for Michigan Senior Care (home delivered meals and in-home care). Extend the exemption on paying Michigan s 18 cent per gallon state gasoline excise tax to nonprofit home delivered meal providers. Make Michigan a Retirement Destination of Choice Michigan must make strategic investments in creating more livable communities for all ages that attract and retain older residents, and benefit from the income, consumer spending, civic engagement, and investment of assets that retirees bring to state and local economies. Other states are aggressively undertaking programs to encourage in-migration, and Michigan must remain competitive. Call for Action Adopt best practice models for the creation and enhancement of community development, tourism, social service, housing, mobility, public/private partnerships, and state and local government activities that make Michigan and its communities attractive to retirees. Create more opportunities for older Michiganians to participate in meaningful civic engagement through volunteerism. Re-structure public transportation funding mechanisms to allow revenues to grow at a pace that equals the growing demand for public transportation services. Michigan has long wait lists for in-home services (3,550) and home delivered meals (1,067), forcing many to quickly spend down to Medicaid eligibility.

4 Strategy 3 Help the Vulnerable Remain Independent Michigan must lessen the dependence of lowincome and vulnerable older adults on the most costly services by promoting healthy behaviors and lifestyles, creating alternatives that enhance person-centered choice, and empowering individuals and families to make the best use of their social and financial resources through informed decision making. A key component of this strategy is to move Michigan closer to becoming a No Wait List State for Older Michiganians Act programs. Call for Action Reverse proposed cuts and increase state support for Older Michiganians Act services that help prevent dependence on Medicaid. Help family caregivers by supporting access to quality information on community-based long term care services and the continuum of respite services including adult day care, in-home respite, caregiver training, and extended respite. Take steps to implement elements of the federal Project 2020 proposal, which builds on the existing aging network to develop costeffective access to information, prevention programs, and Medicaid alternatives that encourage the best use of public resources, including diversion from Medicaid itself. Support alternative financing for Senior Wellness programs through creation of a specialty license plate (I Love Michigan) to develop and expand evidence-based older adult wellness, fitness, education, and healthy living programs through senior centers and other aging network organizations. Expand the Senior Corps Programs (Foster Grandparent Program, Retired Senior Volunteer Program, and Senior Companion Program), which help lessen the dependence on more costly services for both volunteers and individuals served by the volunteers. Implement recommendations of the Elder Abuse Task Force that have demonstrated success in enhancing protections for vulnerable older adults from abuse and financial exploitation. Full implementation of Project 2020 will bring a projected net savings to Michigan of $38.6 million from FY by serving 12,898 participants in evidence-based prevention programs and diverting 1,482 individuals from Medicaid long term care.

5 Older Michiganians Day Platform Elements Steering Committee Area Agencies on Aging Association of Michigan AARP of Michigan Michigan Association of Senior Centers Michigan Association of Senior Volunteer Programs Michigan Directors of Services to the Aging Michigan Disability Rights Coalition Michigan Senior Advocates Council Facilitated by the Michigan Office of Services to the Aging and Michigan Office of Long Term Care Supports and Services What Seniors and Advocates Can Do Understand the issues and be prepared to advocate for the Legislative Blueprint for Action at the rally or call in or your legislators on June 24, 2009 if you can t be in Lansing. Before Participate in a local Older Michiganians Day 2009 event sponsored by your Area Agency on Aging. Review the Senior Solutions for Weathering Michigan s Economic Storm platform. Study senators and representatives stand on related issues. Identify issues related to the platform that need attention. Prepare strategies for engaging the legislators in support of the platform. During Attend the rally in Lansing. Participate in meetings with state senators and representatives. Advocate for the Senior Solutions platform. Observe legislative sessions in progress, if feasible. Prepare strategies for engaging the legislators to support the platform. After Continue to strengthen and develop relationships with the legislators. Follow up with legislators regarding the platform after the event. Maintain ongoing relationships. Keep your senators and representatives informed about local issues impacting older persons, retirees and baby boomers. Encourage other seniors and advocacy groups to stay engaged. What Legislators Can Do Be prepared to welcome seniors, caregivers and advocates who will travel to Lansing on June 24, Before Review the Older Michiganians Day Senior Solutions for Weathering Michigan s Economic Storm platform and identify issues that you can support. Discuss possible alliances with other legislators who have the same interest. Have your staff obtain answers to any issues that you may have. Participate in local pre-older Michiganians Day events with constituents that are sponsored by your Area Agency on Aging. Sponsor legislation to support the Senior Solutions platform. During Set aside time on June 24, 2009 to meet with constituents in Lansing. Consider coordinating meetings with other senators or representatives in district. Schedule committee hearings on senior legislation for June 24. Schedule senior legislation for action on the floor. After Follow up with local advocates. Adopt legislation that addresses community needs. Recognize the wealth of knowledge, experience and benefits to the economy that older persons bring to Michigan. Support legislation that addresses the future needs of baby boomers. Meet with senior advocates at the district level to stay abreast of issues.

6 Senior Solutions for the Economic Crisis There are far more economic and social benefits to a burgeoning retiree population than there are costs. Generally, retirees provide $4 in revenue for every $3 they cost in government services, according to University of Florida Bureau of Economic and Business Research economist David Denslow. States and communities that are successful in attracting and retaining retirees stand to see considerable gains for their economies over those who do not. In 2007, the median annual income for a householder age 65+ was $31,513. The sum total of senior income for the state of Michigan exceeded $35 billion. Retiree income is extremely valuable to our economy because it mostly represents income that is imported into our economy in the form of Social Security, pension benefits, and earnings on investments. In some ways, the move of a Michigan retiree is much more devastating to our economy than the move of a worker below retirement age. Outmigration of a retiree causes a reduction in overall state income and consumer spending, which in turn causes a chain reaction of even less spending and lost jobs. But, when a worker leaves the state to take another job, there may be no reduction in overall household earnings because the worker s job will be filled by someone else. It is clear why states are fighting to keep and attract retirees they are a key to economic health and stability. In all cases the elderly have positive economic and fiscal impacts on the local economy. Shields, Stallman, and Deller Journal of the Community Development Society A 2007 Council of Michigan Foundations Study estimated that between 2005 and 2015 approximately $140 billion in wealth will be transferred from individual estates, with a portion of that wealth captured by endowments for community betterment. In 2005, people in the age bracket gave the most dollars to charitable contributions, with those 75+ giving the highest portion of their income. In 2009, Michigan s population will increase at a rate of 113 seniors per day, growing by 41,000, while other age groups will shrink.