CDCAN NEWS REPORT
CALIFORNIA DISABILITY COMMUNITY ACTION NETWORK
ADVOCACY WITHOUT BORDERS: ONE COMMUNITY
REPORT #040-2009 FEBRUARY 12, 2009 – THURSDAY
California Disability Community Action Network Disability Rights News goes out to over 45,000 people with disabilities, mental health needs, seniors, veterans with disabilities and mental health needs, their families, workers, community organizations, including those in Asian/Pacific Islander, Latino, African American communities, policy makers and others across California
To reply to this report write: MARTY OMOTO at martyomoto@rcip.com Website: www.cdcan.us
California Budget Crisis
* BUDGET AGREEMENT NEAR
* SOME NEW DETAILS EMERGING
* MAJOR CUTS TO REGIONAL CENTERS
* CUTS TO SSI/SSP, CALWORKS
OTHER CUTS – TO IHSS, MEDI-CAL OPTIONAL BENEFITS, OTHER CALWORKS AND SSI/SSP CUTS WILL NOT HAPPEN IF SUFFICIENT FUNDING COMES FROM FEDERAL ECONOMIC STIMULUS BILL
SACRAMENTO (CDCAN) [Updated 02/12/09 5:20 PM] - The budget agreement still being finalized by the Governor and four legislative leaders (Senate President Pro Tem Darrell Steinberg, Assembly Speaker Karen Bass, Senate Republican Leader Dave Cogdill and Assembly Republican Leader Mike Villines) contains major new cuts to regional centers, including an additional 7.1% cut to provider payments and rolling back grant levels for people receiving SSI/SSP (Supplemental Security Income/State Supplemental Payments to lowest income people with disabilities, the blind and seniors) to December 2008 and suspending the cost of living due to them in June 2010.
The additional 7.1% cut to regional center provider payments would take effect during the 2009-2010 State Budget year that begins July 1, 2009 and would be in addition to the 3% cut that the agreement would have in place during the current budget year. That would mean by the 2009-2010, the cut to regional center providers would total 10.1%. No information was available on what providers – if any – would be exempt from the additional reduction (certain regional center providers – including supported employment providers who received a reduction last September – were exempt from the 3% cut).
The situation is still fluid, because the agreement is not yet finalized by the Governor and four leaders or approved by the Legislature, some details could change – or could even get totally derailed. But the budget deal, as outlined below, is inching closer and closer to agreement by the Governor and Legislature.
Cuts Total $6.677 Billion For Current Year – Another $7.371 for 2009-2010
The agreement, with cuts that total over $6.767 billion (state funds only) for the 2008-2009 State Budget year and another $7.371 billion (state funds ooly) for the 2009-2010 State Budget year that begins July 1, 2009, also contains cuts to CalWORKS, the state’s “welfare to work” program that includes thousands of children and parents with special needs and disabilities. Not listed for reduction or elimination is the Cash Assistance Program for Immigrants (CAPI) which provides small grants (at the level of the State Supplemental Payment grants) for people with disabilities, the blind and seniors who are legal immigrants but who do not qualify for the federal SSI program. Those amounts do not include the $947.7 million of cuts that would take effect during the 2009-2010 – called “trigger cuts” if not enough funding came to California from the federal economic stimulus bill that Congress is expected to pass – and the President expected to sign – by early next week.
The State budget agreement also contains cuts – called fund shifts – of funding under Proposition 63, the Mental Health Services Act, and also Proposition 10.
Also included are major cuts to In-Home Supportive Services, more cuts to SSI/SSP and CalWORKS and Medi-Cal that will not happen if there is sufficient level of funding that comes to California from the federal economic stimulus bill, which is waiting for final approval in Congress. Passage of that bill and approval by President Obama is expected by early next week.
Cuts that are tied to the funding that comes from the economic stimulus bill are called “trigger cuts”.
Cuts to regional centers, and other cuts impacting SSI/SSP and CalWORKS are not included in the “trigger cuts”
Also reportedly part of the agreement, though no details are available, is a proposal to change the State Constitution to limit or cap spending – a proposal that must go to the voters sometime this year in a special election that the Governor will call.
Budget Agreement Would Close Two Year Deficit of Over $41 Billion
The budget agreement still being finalized would close the projected budget deficit of over $41 billion (by the end of the 2009-2010 State Budget year) with spending reductions of over $15.8 billion ($948 million of that total are “trigger cuts” that will not happen if there is sufficient funding that comes from the federal economic stimulus bill), revenue increases, including tax increases of over $14.3 billion, and borrowing (including from the State Lottery, which will require voter approval) totaling $10.9 billion.
The budget agreement still requires final sign-off of the Governor and the four legislative leaders, and then approval by the State Senate and Assembly. The State Senate has a floor session scheduled for Friday (February 13) though it is not certain if they will vote on the budget then. The Assembly meanwhile has scheduled a floor session on Saturday, February 14, to vote on the budget
More details on revnues will be reported in a later CDCAN Report today.
SPENDING CUTS – NOT TIED TO FEDERAL ECONOMIC STIMULUS BILL
CDCAN Note: These are cuts (and shifting of funds where noted) that included in the budget agreement being finalized. These are cuts that are not tied to funding that could come from the federal economic stimulus bill. It means these cuts will likely happen no matter what funding comes from that federal bill – as opposed to several major potential cuts that are included in the agreement, (called “trigger cuts”) but will not happen if sufficient funding comes from the federal economic stimulus bill.
Total spending cuts for 2008-2009 State Budget year that ends June 30, 2009 with no “trigger” totals $6.767 billion (state funds only). Total spending cuts for 2009-2010 State budget year that begins July1, 2009 with no “trigger” (meaning not tied to or impacted by the federal economic stimulus bill) totals $7.371 billion (state funds only), with a two year total of $14.1 billion (state funds only)
CALWORKS
CDCAN Note: see additional cut under “trigger cuts” that will not happen if sufficient funding comes from the federal economic stimulus bill
CalWORKS: Suspend (cut) July 2009 cost of living (COLA)
2008-2009 Budget Year: None
2009-2010 Budget Year: $79.1 million (state funds only)
CalWORKS: Suspend funding for “Pay For Performance Incentive Program”
2008-2009 Budget Year: None
2009-2010 Budget Year: $40 million (state funds only)
CalWORKS: Delay LEADER Replacement Project
2008-2009 Budget Year: None
2009-2010 Budget Year: $14.6 million (state funds only)
CHILDREN – PROPOSITION 10
Proposition 10: Shift 50% of state and local funds to children’s programs through 2013-2014, and sweep State Commission balances
2008-2009 Budget Year: None
2009-2010 Budget Year: $608 million (state funds only – fund shift)
DEVELOPMENTAL SERVICES (REGIONAL CENTERS)
CDCAN Note: Cuts below do not include reduction in growth, but that reduction still appears to be part of the agreement
Regional Centers: 3% reduction of regional center operations and regional center provider payments
2008-2009 Budget Year: $24.6 million (state funds only)
2009-2010 Budget Year: $60.2 million (state funds only)
CDCAN Note: this proposal was made originally by the Governor in December
Regional Centers: Additional 7.1% reduction for regional center provider payments (making it a total of 10.1% beginning July 1, 2009)
2008-2009 Budget Year: none
2009-2010 Budget Year: $100 million (state funds only)
MEDI-CAL
CDCAN Note: see additional cut under “trigger cuts” that will not happen if sufficient funding comes from the federal economic stimulus bill. Not apparently included in the agreement are any additional provider rate cuts (new provider rate cuts are scheduled to go into effect March 1, 2009, which were approved by the Legislature and Governor in September. That rate cut is the subject of a lawsuit, with a court hearing set February 18 in San Francisco. See separate CDCAN Report for details). Other previous Medi-Cal proposed cuts – including changes to eligibility to the aged, blind and disabled program, are not listed in the budget agreement.
Medi-Cal: Suspend July 2009 cost of living for county administration of the Medi-Cal program
2008-2009 Budget Year: None
2009-2010 Budget Year: $24.7 million (state funds only)
MENTAL HEALTH SERVICES
Mental Health (Proposition 63) – Temporarily fund EPSDT (Early Periodic Screening Diagnosis Testing Programs) with Proposition 63 funds
2008-2009 Budget Year: None
2009-2010 Budget Year: $226.7 million (state funds only – fund shift)
SSI/SSP (SUPPLEMENTAL SECURITY INCOME/STATE SUPPLEMENTAL PAYMENT)
CDCAN Note: see additional cut under “trigger cuts” that will not happen if sufficient funding comes from the federal economic stimulus bill
SSI/SSP: Suspend (cut) the June 2010 state cost of living (COLA) money owed to people who receive SSI/SSP
2008-2009 Budget Year: none
2009-2010 Budget Year: $27 million (state funds only)
SSI/SSP: Withhold (cut) federal cost of living that went into effect January 1, 2009 (rolls back SSI/SSP grant level to what it was as of December 1, 2008)
2008-2009 Budget Year: $79.8 million (state funds only)
2009-2010 Budget Year: $487.3 million (state funds only)
EDUCATION – PROPOSITION 98
Reductions of the Proposition 98 funding (education funding guarantee)
2008-2009 Budget Year: $5.646. billion (state funds only)
2009-2010 Budget Year: $2.955 billion (state funds only)
Note: also other reductions impacting Proposition 98 including funding at the current year minimum and shift for home to school transportation. Higher education would get a 10% across the board cut.
TRANSPORTATION
Public Transit: Suspend (cut) state funding for local transit agencies for five years
2008-2009 Budget Year: $153.2 million (state funds only)
2009-2010 Budget Year: $306.4 million (state funds only)
CalTrans: Shift tribal revenues to State general fund
2008-2009 Budget Year: $100.8 million (state funds only- fund shift)
2009-2010 Budget Year: $201.6 million (state funds only – fund shift)
CORRECTIONS (PRISONS)
10% cut to medical budget
2008-2009 Budget Year: none
2009-2010 Budget Year: 181 million (state funds only)
OTHER – AMERICANS WITH DISABILITIES ACT COMPLIANCE FUNDING
Shift Americans with Disabilities Act (ADA) Compliance Funding to Proposition 84
2008-2009 Budget Year: $11 million (state funds only – fund shift)
2009-2010 Budget Year: $8 million (state funds only – fund shift)
CUTS THAT WILL NOT HAPPEN IF ENOUGH FUNDING COMES FROM FEDERAL ECONOMIC STIMULUS BILL (“TRIGGER CUTS”)
CDCAN Note: these are spending cuts that will not happen if a sufficient level of federal economic stimulus money comes to California. There are no “trigger cuts” that would take effect during the current budget year. The total “trigger cuts” for the 2009-2010 State Budget year that begins July 1, 2009 amounts to $947.7 million in state general funds.
CALWORKS - 4% GRANT REDUCTION
This is the state’s “welfare to work” program that impacts several thousands of children and parents with special needs and disabilities
2008-2009 Budget Year: none
2009-2010 Budget Year: $146 million (state funds only - cut will not happen if sufficient funding comes from federal economic stimulus bill)
IN-HOME SUPPORTIVE SERVICES (IHSS)
Cap state participation of IHSS worker wages at $9.50 per hour plus up to 60 cents for benefits and implementation of (prospective) share of cost proposal
2008-2009 Budget Year: none
2009-2010 Budget Year: $78 million (state funds only- cut will not happen if sufficient funding comes from federal economic stimulus bill)
MEDI-CAL
Elimination of several Medi-Cal optional benefits and cut by 10% Medi-Cal reimbursement rates for public hospitals
2008-2009 Budget Year: None
2009-2010 Budget Year: $183.6 million (state funds only - cut will not happen if sufficient funding comes from federal economic stimulus bill)
SSI/SSP
Reduce grants by 2.3% (cut of about $20 for individuals and $35 for married couples)
2008-2009 Budget Year: None
2009-2010 Budget Year: $267 million (state funds only - cut will not happen if sufficient funding comes from federal economic stimulus bill)
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