Savings small after Levinson Center transfer
2/27/09 | 21 comments
Budget

Savings small after Levinson Center transfer


By Abigail Curtis
BDN Staff

BANGOR, Maine — State government officials told Mainers a year ago that privatizing the Elizabeth Levinson Center, which provides care for severely mentally retarded Maine children and young adults, was necessary to save money.

But as the center’s expected savings after privatization for this fiscal year have shrunk from $400,000 to just a few hundred dollars, officials now are saying that the primary reason to privatize the state-owned and state-operated facility was simply to get out of the business of providing direct care.

“We see the state’s role as quality assurance and quality oversight,” Jane Gallivan, director of the Department of Health and Human Services’ Office of Adults with Cognitive and Physical Disabilities, said Thursday. “The savings was never really projected as being a huge savings.”

Last February, Commissioner Brenda Harvey of the Maine Department of Health and Human Services told lawmakers that privatizing the center would save $411,000 a year. It has cost the state about $3.2 million annually to run, according to the commissioner.

But Sunday, March 1, is the first day the Levinson Center will be operated by the private nonprofit organization United Cerebral Palsy of Northeastern Maine, and the math has changed.

Bobbi Jo Yeager, the executive director of the nonprofit, said she estimates the “proposed daily rate” the state will pay is $690 a day for each of the 13 children, an increase over a December estimate of $669.44.

Mary Moody of Hallowell, the mother of a Levinson Center resident, said the daily rate the state now pays is $690.12.

That works out to an annual savings of just $569.40.

State and UCP officials cautioned against using the proposed daily rate as an absolute cost of the program.

“The rate is our best guess estimate at this point of what it’s actually going to cost us,” Yeager said.

But Nick Galipeau of the Maine State Employees Association said that the privatization process has been unfair to Levinson Center workers and that the diminished estimated savings is unfair to taxpayers.

“I think the state really has rammed privatization of state jobs through the Legislature upon the premise of cost savings to taxpayers. That’s been their original platform,” he said. “I think that the state is reversing itself now by saying that it’s their philosophy to privatize.”

Most of the state workers employed at the Levinson Center have been rehired by United Cerebral Palsy at the same hourly wage they have been earning, although it is generally “much higher” than in comparable Bangor facilities, Gallivan said.

“We honored that going forward,” she said. “However, their benefit package is clearly not as rich as that of the state of Maine.”

Yeager said that 2½ positions have been trimmed from the center.

“We’re going to be continuing to look for cost savings wherever we can find them,” she said. “We just didn’t want to jump to any conclusions.”

She said that much of the operating budget is wages — and that had the state continued to run the center, its yearly operating costs would have gone up when state workers received a 4 percent raise in January.

“Unless you drastically change hours over there, you’re not going to drastically change the budget. I’m sure the legislators were a little upset about it. We believe we might find cost savings going forward, but I’m glad we don’t have to make major changes at this point,” Yeager said. “I feel that the state was committed enough to these kids to not put anybody in jeopardy and to allow the staffing hours to stay the same.”

Moody, who advocates on behalf of her daughter, said she is concerned that the privatization might lead to greater staff turnover, especially as the staff now will receive a less generous benefits package.

“What I’m concerned with is quality of care,” she said. “I’m not saying it’s going to change, but I’m worried it might change.”

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Comments
21 comments on this item
On 2/28/09 at 6:46 AM, fredrogers wrote:         Repeated separate thumbs down will cause comment to be hidden

I wonder what the great Al rand from brewer would say about this development?

After his tireless work and enthusiasm to raise funds, raise awareness, and raise our expectations as to what iS 'support' for human lives, challenged by the fact they these folks look to us for our compassion and our support, I trust will not be in vain?

I hope UCP has some 'institution memory' here?

It is good to save the support by moving to UCP IFn and only ifn it matches the prior support level and prolongs the availability at the same time.

These vulnerable, loved, and cherished folks have few options and less advocates now, but I trust Ms yeager feels the love for them but does also appear to be worried at the burden of this challenge.

God bless the family, staff, and of course the angels who live there.

Remember Al is watching over you too!

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On 2/28/09 at 8:16 AM, Ubadard wrote:         Repeated separate thumbs down will cause comment to be hidden

Shocking! State officials touting great savings to the State via privatization and or consolidation only to find out the savings aren't there. Couldn't have seen that coming.

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On 2/28/09 at 8:54 AM, katahdinfan101 wrote:         Repeated separate thumbs down will cause comment to be hidden

I really am bothered by people who lie or just move the goal post. " Commissioner Brenda Harvey of the Maine Department of Health and Human Services told lawmakers that privatizing the center would save $411,000 a year. It has cost the state about $3.2 million annually to run, according to the commissioner."

Harvey lied, plain and simple and when you lie and fail to do your job you get fired. Harvey's plan didn't save any money, but what did it do? People that are dedicated to caring for these needy individuals were taken out of their safe and secure state positions that offer real benefits are now working for a non profit agency that has no security to its existance and offers them little or no benefits. Now if there had been real savings it would have been worth it, but with no savings, Harvey should be fired. There has to be accountability, oh wait a minute, this is the Baldacci Administration, the only ones accountable under his administration are the TAX payers.

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On 2/28/09 at 9:09 AM, Bangorian wrote:         Repeated separate thumbs down will cause comment to be hidden

How many people are now going without services or are experiencing a drop in quality as a result of these changes? I'm tired of State officials lying to the public.

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On 2/28/09 at 9:11 AM, augustagoverned wrote:         Repeated separate thumbs down will cause comment to be hidden

Sounds a lot like the savings in Baldacci's school consolidation plan. Illusory.

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On 2/28/09 at 9:52 AM, SLM414 wrote:         Repeated separate thumbs down will cause comment to be hidden

Lies, lies, and damned lies.

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On 2/28/09 at 10:05 AM, SLM414 wrote:         Repeated separate thumbs down will cause comment to be hidden

And if they stripped the works of a richer benefits package and still come up with minimal savings adfter denying them raises...where did all the money go? Nice work UCP. I think I know who is getting richer.

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On 2/28/09 at 10:27 AM, choppahdave wrote:         Repeated separate thumbs down will cause comment to be hidden

Who's doing these studies? We know who pays for them.

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On 2/28/09 at 1:54 PM, Mainerinexile2 wrote:         Repeated separate thumbs down will cause comment to be hidden

I am a parent of a child in residence at ELC. I have to say that UCP has to be given a chance. They have been in your community for many years, and have done great things for children and adults alike. I do not think that the staff of ELC would have stayed on if they thought that UCP would have done anything less by the children than they themselves were doing under the State of Maine. Please don't judge unless you walk in our shoes. And really thank G*d most of you do not.

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On 2/28/09 at 2:46 PM, cookiecrumbles wrote:         Repeated separate thumbs down will cause comment to be hidden

Where is Baldacci putting the funds? The middle east? LOL The state of Maine has gone to hell...Politically speaking that is...

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On 2/28/09 at 2:51 PM, BxrsOrBriefs wrote:         Repeated separate thumbs down will cause comment to be hidden

I wish UCP all the best.......I have been with the Levinson Ctr for 25 yrs,But it was my choice to move on to finish out my retirement, There has been three of us that has moved on out of fifty staff members

And it was nice of UCP to keep almost all the staff on and keep there wages the same ........,For how long nobody knows

I wish UCP and The staff the very best

Enjoy the day

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On 2/28/09 at 3:06 PM, BxrsOrBriefs wrote:         Repeated separate thumbs down will cause comment to be hidden

Who knows............. If it wasn't was UCP taking over the Levinson Ctr... Where would the state put these kids In a Nursing home?

Kids don't belong in nursing homes

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On 2/28/09 at 3:11 PM, Comnsenz wrote:         Repeated separate thumbs down will cause comment to be hidden

If the cost saving figures had come from the private sector and not the State, one might have been able to believe them. My sense is that many in State Government have no clue what a business plan is or what it means to finish in the black and not the red. There are many sectors of State Government functions that could be privatized, resulting in millions of dollars of tax payer savings. When these real cost saving ideas come up they are generally crushed by the entrenched public employee bureaucracy. Don't throw the baby out with the bath water.

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On 2/28/09 at 3:35 PM, BxrsOrBriefs wrote:         Repeated separate thumbs down will cause comment to be hidden

That state fails mention that they get almost 2 million dollars from the Frederal Gov. on the Levinson tr

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On 2/28/09 at 3:36 PM, BxrsOrBriefs wrote:         Repeated separate thumbs down will cause comment to be hidden

That state fails mention that they get almost 2 million dollars from the Frederal Gov. on the Levinson Ctr.

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On 2/28/09 at 4:28 PM, Mainerinexile2 wrote:         Repeated separate thumbs down will cause comment to be hidden

BxrsOrBriefs, if you think about this you know who this is. Will you go back to ELC?

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On 2/28/09 at 5:31 PM, BxrsOrBriefs wrote:         Repeated separate thumbs down will cause comment to be hidden

Awwwwwwwww I would love to...... Mainerinexile.I have to do 400 hrs with the state to get my retirement....and i don't know who u are

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On 2/28/09 at 6:21 PM, Mainerinexile2 wrote:         Repeated separate thumbs down will cause comment to be hidden

In exile means? I fly in to visit..not as often as I would like..

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On 2/28/09 at 6:25 PM, BxrsOrBriefs wrote:         Repeated separate thumbs down will cause comment to be hidden

OK GOTCHA....B?

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On 2/28/09 at 6:38 PM, Mainerinexile2 wrote:         Repeated separate thumbs down will cause comment to be hidden

Yes, that would be the guilty party. I am on Twitter. If you join, I can find you there, and take this off of here.

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On 3/1/09 at 3:34 PM, BobByn wrote:         Repeated separate thumbs down will cause comment to be hidden

State of Maine pays millions and millions to providers every year for a never ending out patient brain injury day hab program - but decide to watch their pennies when it comes to caring for these fragile children. Shame, shame, shame.

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