NASHVILLE (AP) - The fate of about $242 million in federal dollars that the state health department depends upon could be in jeopardy if a special deficit committee in Washington proposes drastic cuts, the agency's chief said Tuesday.
Tennessee Health Department Commissioner John Dreyzehner gave the news to Gov. Bill Haslam and top members of his cabinet during a series of budget hearings.
In anticipation of a serious loss of federal money, the Republican governor has asked each state department to propose how they would spend 5 percent less than planned next year if necessary. Haslam has said he hopes the cuts won't be that deep.
Nevertheless, the Health Department is proposing to spend $40 million less, which would do away with a number of primary health care centers for low-income Tennessee residents.
"While we wish these cuts weren't necessary, we believe the ones we have chosen will have the least impact," said Dreyzehner, adding that the financial outlook could be worse depending on how much funding is reduced out of Washington.
In the case of mental health, state Commissioner Doug Varney said he's drawn up a plan that would cut $24 million, but has asked the governor to spare about $6 million to keep programs like peer support centers where long-term mental health consumers go to learn job skills and interact with other people.
Varney said there are 48 such centers across the state and some of them would have to be closed if 5 percent cuts become reality.
"I hate having to consider that," Varney said. "In our budget, there isn't much fluff. There's nothing that I would chose to cut."
Libby Garner of Tennessee Mental Health Consumers Association said thousands of mental health patients would be affected if such cuts are made.
"That would be tragic, because the people would be back by themselves without community," she said. "It's very important to have these servi ces for them to go to every day."
The governor's administration also heard budget estimates from state higher education officials on Tuesday.
Rich Rhoda, executive director of the Tennessee Higher Education Commission, was joined by Tennessee Board of Regents Chancellor John Morgan and University of Tennessee President Joe DiPietro.
Rhoda said $55 million in higher education cuts are being proposed. He didn't specify exact areas, but he said personnel would be affected.
Last week, the Tennessee Higher Education Commission voted to request a $28 million increase in state appropriations next year for public higher education, coupled with student tuition increases ranging from 5 to 8 percent at the University of Memphis and the University of Tennessee, Knoxville.
The proposal also calls for tuition hikes ranging from 3 to 6 percent at the state's other public universities and community colleges.
Under the plan, the tuition increases would occu r on the lower end of each set of ranges if Haslam and state lawmakers approve the funding increase, but would fall on the upper end of the ranges if the 5 percent reduction occurs.