Tuesday, February 24, 2009

SSI/SSP Cost of Living Increase to be Eliminated as of May 1, 2009

This is a long one with a lot of legislative language that can be confusing. The bold text sums up the most important points.
MVE

CDCAN BUDGET UPDATE #2
SSI/SSP – IHSS – CAPI – TRANSPORTATION & CALWORKS PROGRAMS

SACRAMENTO, CALIF (CDCAN) [Updated 02/23/09 11:35 PM (Pacific Time) ] - This is the second of five CDCAN Budget Updates dealing with the various programs and issues impacting children and adults with disabilities, mental health needs, seniors, low income families, community organizations, facilities and workers who provide advocacy, supports and services across California.

This update provides summary and some details on major changes and cuts to SSI/SSP (Supplemental Security Income/State Supplemental Payment) program that provides small grants to the lowest income persons with disabilities, the blind and seniors, In-Home Supportive Services (IHSS), the Cash Assistance Program for Immigrants (provides state funded small grants to the lowest income persons with disabilities, the blind and seniors who are legal immigrants but do not qualify for the federal SSI program), CalWORKS, the State’s “welfare to work” program that impacts thousands of children with disabilities and special needs (including thousands of parents), and an update on transportation budget issues impacting people with disabilities, seniors and others.
Also listed is a CDCAN Vote Record Report on the budget related (trailer) bill that made changes to various California existing laws to implement these budget cuts and changes. It is important for people to look and see how their own legislator voted on this – and other budget issues.

Not listed in this report – but is detailed in a separate CDCAN Budget Update is the impact of the ballot initiatives and constitutional amendments up for voter approval in the May 19, 2009 statewide special election. One measure – a proposed amendment to the State Constitution, would impose a “hard” cap or limitation on state spending, That spending cap will likely – advocates fear – cause major changes to a wide range of health and human service programs. The constitutional amendment takes effect immediately if approved, but it is not clear how long it will take to actually fully implement to spending limits.

CDCAN VOTE RECORD REPORT
This is the official vote record on the budget related (trailer) bill that contained the changes in State law to implement various changes and also cuts to several programs including SSI/SSP, CalWORKS, IHSS (IHSS cuts will not happen if sufficient level of federal money comes from to California from the economic stimulus bill, which is certain, and some – but not all- of the cuts to the regional centers)
SBx3 6 – HUMAN SERVICES (BUDGET RELATED – TRAILER – BILL)
Makes Cuts two cuts to SSI/SSP (rolling back grant level to what it was on December 1, 2008, withholding federal cost of living that went into effect January 1, 2009 – effective May 1, 2009, and suspending the June 1, 2010 State cost of living), various cuts to CalWORKS including suspension of the July 1, 2009 cost of living; , 3% cuts to Regional Center operations and providers, also cuts that will not happen if there is sufficient money coming to California from the federal economic stimulus bill (2 cuts to IHSS that roll back State participation (funding) in IHSS worker wages and also eliminate IHSS share of cost buy-out, 1 cut to SSI/SSP that would reduce the grant level by 2.3%, 1 cut that would reduce CalWORKS grant level by 4%)
STATUS 02/14/09: PASSED Assembly 68 to 11.
STATUS 02/19/09: PASSED State Senate 28 to 10.
LAST ACTION 02/20/09: SIGNED by Governor, Chaptered by Secretary of State.

STATE SENATE VOTE
02/19/09 ACTION: Pass 28 to 10. [needed 27 votes to pass]
YES VOTES – 28 TOTAL
Senate Democrats (19): Alquist, Calderon, Corbett, DeSaulnier, Ducheny, Florez, Hancock, Kehoe, Leno, Lowenthal, Oropeza, Padilla, Pavley, Romero, Simitian, Steinberg (Senate President), Wiggins, Wolk, and Wright.
Senate Republicans Voting (9): Benoit, Cogdill, Cox, Harman, Hollingsworth (Senate Republican Leader), Huff, Runner, Strickland and Wyland
NO VOTES – 10 TOTAL
Senate Democrats (5): Cedillo, Correa, Liu, Negrete McLeod, and Yee
Senate Republicans (5): Aanestad, Denham, Dutton, Maldonaldo and Walters
ABSENT, ABSTAINING OR NOT VOTING – 2 TOTAL
Senate Democrats (0): -none-
Senate Republicans (1): Ashburn
Vacancy (1): 26th State Senate District

ASSEMBLY VOTE
02/14/09 ACTION: Pass 68 to 11 [needed 54 votes to pass]
YES VOTES – 68 TOTAL .
Assembly Democrats (49): Tom Ammiano, Juan Arambula, Karen Bass (Assembly Speaker), Jim Beall Jr, Marty Block, Bob Blumenfield, Julia Brownley, Joan Buchanan, Anna Caballero, Charles Calderon, Wilmer Carter, Wes Chesbro, Joe Coto, Mike Davis. Hector De La Torre, Kevin De Leon, Mike Eng, Noreen Evans, Mike Feuer, Paul Fong, Felipe Fuentes, Warren Furutani, Cathleen Galgiani, Isadore Hall, Mary Hayashi, Edward Hernandez, Jerry Hill, Alyson Huber, Jared Huffman, Dave Jones, Paul Krekorian, Ted Lieu, Bonnie Lowenthal, Fiona Ma, Tony Mendoza, William Monning, Pedro Nava, John Perez, V. Manuel Perez, Anthony Portantino, Curren Price, Ira Ruskin, Mary Salas, Lori Saldana, Nancy Skinner, Jose Solorio, Tom Torlakson, Norma Torres, and Alberto Torrico
Assembly Republicans (19): Anthony Adams, Bill Berryhill, Tom Berryhill, Sam Blakeslee, Connie Conway, Paul Cook, Michael Duvall, Bill Emmerson, Nathan Fletcher, Jean Fuller, Kevin Jeffries, Steve Knight, Dan Logue, Brian Nestande, Roger Niello, Jim Nielsen, Jim Silva, Cameron Smyth, Mike Villines (Assembly Republican Leader)
NO VOTES – 11 TOTAL
Assembly Democrats (1): Sandre Swanson
Assembly Republicans (10): Joel Anderson, Chuck DeVore, Ted Gaines, Martin Garrick, Danny Gilmore, Curt Hagman, Diane Harkey, Jeff Miller , Audra Strickland and Van Tran
ABSENT, ABSTAINING OR NOT VOTING – 1 TOTAL
Assembly Democrats (1): Mariko Yamada
Assembly Republicans (0): -none-


CDCAN BUDGET SUMMARY
SSI/SSP (SUPPLEMENTAL SECURITY INCOME
STATE SUPPLEMENTAL PAYMENT)

SSI/SSP CUTS PASSED AND IN THE STATE BUDGET
WITHHOLD JANUARY 1, 2009 FEDERAL COST OF LIVING MONEY
* Effective May 1, 2009, rolls back the SSI part of the SSI/SSP grant level back to what it was as of December 1, 2008. This action would suspend or withhold the federal cost of living money given to SSI/SSP recipients as of January 1, 2009, as of May 1, 2009.
* Total reduction in the remaining months of the 2008-2009 State budget year is $79.8 million (May 1 to June 30, 2009) and another $487.3 million for the 2009-2010 State Budget year (July 1, 2009 to June 30, 2010).
BUDGET RELATED (TRAILER) BILL LANGUAGE (SBx3 6):
SEC. 5. Section 12200.018 is added [word “added” highlighted color red for emphasis] to the Welfare and Institutions Code, to read:
12200.018. (a) Notwithstanding any other provision of law, the maximum aid payments in effect on January 1, 2009, in accordance with Article 5 of Chapter 3 of Division 9 of the Welfare and Institutions Code, except payments made pursuant to subdivisions (e), (g), and (h) of Section 12200, shall be reduced to the payment levels in effect on December 1, 2008.
(b) Notwithstanding subdivision (a), in no event shall the payment schedules be reduced below the level required by the federal Social Security Act in order to maintain eligibility for federal funding under Title XIX of the federal Social Security Act, contained in Subchapter 19 (commencing with Section 1396) of Chapter 7 of Title 42 of the United States Code.
(c) This section shall become operative on May 1, 2009.
(d) This section shall become inoperative on July 1, 2009, and as that date is repealed, but only if Section 12200.019 becomes operative on that date.
CDCAN COMMENT:
* Department of Social Services, which oversees this program, will be sending out to persons on SSI/SSP notice of action regarding this reduction that will take place effective May 1, 2009.
* The cut of the federal cost of living is not retroactive – so people on SSI/SSP will not be paying back the federal cost of living increase they received in January and February, and what they will receive in March and April.
* But their SSI/SSP in May will see a reduction taking out the federal cost of living money. The State achieves this reduction by lowering the state funded portion of the grant (SSP) by the same amount of what the federal cost of living amount was.
* The budget related language’s sentence or paragraph (d) means that this reduction won’t take place IF the SSI/SSP grant reduction of 2.3% does take effect (that grant reduction of 2.3% won’t happen however if there is sufficient level of money coming to California from the federal economic stimulus bill – something that is certain to happen)

SUSPEND (CUT) THE JUNE 2010 STATE COST OF LIVING FOR SSP
* Suspends (cuts) the state cost of living money for the state part (SSP) of the SSI/SSP grant that was due June 1, 2010
* reduction amounts to $27 million in the one month that will remain in the 2009-2010 State budget year that ends June 30, 2010, and another $323.9 million in the 2010-2011 State budget year that begins July 1, 2010 through June 30, 2011.
CDCAN COMMENT: This will be the 16th time since 1991 that the State has suspended (cut) all or in two years, partially, the State cost of living money. The State suspended (cut) the State cost of living adjustment (COLA) owed to people receiving SSI/SSP during the entire calendar years of 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 2003 (5 month suspension), 2004, 2005 (3 month suspension), 2006, 2007, 2008, 2009, and now, 2010.

SSI/SSP CUT IN THE STATE BUDGET THAT WILL NOT HAPPEN
* 2.3% permanent cut to the SSI/SSP grant level (cut from the grant level as it was on December 1, 2008) that totals $268 million in state funds [will not happen].
* If this cut to the grant level (different from suspending or cutting the cost of living money) went into effect, it would reduce the monthly grant for individuals by $20 and the monthly grant for couples by $35. This would be in addition to loss of money caused by withholding the federal cost of living money owed January 1, 2009 that goes into effect May 1, 2009 and the suspension of the state cost of living that would have been given June 1, 2010.
* Exempted from this cut (if it happens) are persons living in SSP (State Supplemental Payment) living arrangements for Non-Medical out-of-home care and Title XIX medical facilities and also those persons receiving a Restaurant Meal Allowance.

BUDGET RELATED (TRIALER) BILL LANGUAGE - SBx3 6
SEC. 6. Section 12200.019 is added [word “added” highlighted color red for emphasis] to the Welfare and Institutions Code, to read:
12200.019. (a) Notwithstanding any other provision of law, the maximum aid payments in effect on January 1, 2009, in accordance with Article 5 of Chapter 3 of Division 9, except payments made pursuant to subdivisions (e), (g), and (h) of Section 12200, shall be reduced to the payment levels in effect on December 1, 2008, and shall be further reduced by 2.3 percent.
(b) Notwithstanding subdivision (a), in no event shall the payment schedules be reduced below the level required by the federal Social Security Act in order to maintain eligibility for federal funding under Title XIX of the federal Social Security Act, contained in Subchapter 19 (commencing with Section 1396) of Chapter 7 of Title 42 of the United States Code.
(c) This section shall become operative on July 1, 2009.
CDCAN COMMENT: This cut to the SSI/SSP grant level in the budget will not happen if a certain level of money comes to California from the federal economic stimulus bill. It is certain that enough money is coming, so this cut will not happen – but it won’t be official until the Department of Finance Director notifies the Legislature on April 1, 2009. However, as mentioned, not all of the cuts to SSI/SSP were on the list of cuts that would not happen if enough federal economic stimulus money comes to California.


CUTS PROPOSED BY GOVERNOR THAT WERE REJECTED
* REJECTED – CAPI (CASH ASSISTANCE PROGRAM FOR IMMIGRANTS) - Not included in the budget (or budget related bills) passed was Governor’s proposal to eliminate the Cash Assistance Program for Immigrants (CAPI) that provides small state funded grants to persons with disabilities, the blind and low income seniors who are legal immigrants but do not qualify for the federal SSI program. Governor proposed this elimination to occur during the 2008-2009 State budget year.
* REJECTED – SSI/SSP GRANT CUT - Not included in the budget (or budget related bills) passed was Governor’s proposal to roll back the SSI/SSP grant level to the minimum allowed by the federal government. (the Legislature instead agreed to a 2.3% reduction to the grant level – which will not happen if enough money comes to California from the economic stimulus bill. )
Also rejected (though not part of the SSI/SSP or CAPI programs):
* REJECTED – FOOD ASSISTANCE PROGRAM CUT - Governor’s proposal to eliminate the California Food Assistance Program (CFAP) which provides food benefits to low income, legal non-citzens.
.
IN-HOME SUPPORTIVE SERVICES (IHSS)

CUTS IN THE 2009-2010 STATE BUDGET THAT WILL NOT HAPPEN
* IHSS SHARE OF COST - Elimination of the IHSS Share of Cost Contribution to persons newly enrolled in IHSS effective during the 2009-2010 State budget year, but will NOT happen if sufficient level of funding comes to California from the federal economic stimulus bill [and there will be enough funding so this cut will NOT happen]. Total reduction – if this cut went through – would have been $3.8 million in State general fund money during the 2009-2010 State budget year that begins July 1, 2009.
* IHSS WORKER WAGES - Reduce state funding (participation) for IHSS worker wages and benefits to up to $9.50 per hour (reduced from the current level of $12.10 that the state can match) and up to 60 cents per hour for health benefits for each IHSS worker. This cut will NOT happen if sufficient level of funding comes to California from the federal economic stimulus bill [and there will be enough funding so this cut will NOT happen]. If this cut did go into effect – and it will not – the reduction in the 2009-2010 State budget year that begins July 1, 2009 would be $74.2 million in state general fund money.
CDCAN COMMENT: The above two cuts are the only two in the State budget for 2009-2010 or the bill to make cuts to the current (2008-2009) budget year that impact directly the In-Home Supportive Services (IHSS), but neither will NOT happen if a certain level of money comes to California from the federal economic stimulus bill. It is certain that enough money is coming, so these two cuts will NOT happen – but it won’t be official until the Department of Finance Director notifies the Legislature on April 1, 2009 .

CUTS PROPOSED BY GOVERNOR THAT WERE REJECTED OR WITHDRAWN
* REJECTED – Not included in the budget (or budget related bills) passed was Governor’s proposal to restrict non-medical services to only those IHSS recipients with the highest level of need, to eliminate the state’s share of cost contribution for IHSS recipients with lower levels of need, and to limit state participation in the wages of IHSS workers to the state minimum wage.
CDCAN COMMENT: The Legislature changed (modified) the proposal regarding reducing the State’s matching (participation) funding for IHSS worker wages that will not happen if sufficient level of federal economic stimulus money comes to California – so that cut, and the cut to IHSS share of cost money, also linked to federal money coming to California from the stimulus bill, will not happen.

CALWORKS
CDCAN COMMENT: California’s “welfare to work program” officially called the “California Work Opportunity and Responsibility to Kids” program or “CalWORKS”. This program includes thousands of children with special needs and disabilities – including those of the parents in the program.

CALWORKS CUTS PASSED AND IN THE STATE BUDGET:
* CALWORKS JULY 2009 COST OF LIVING - Suspends (cuts) the July 2009 cost of living adjustment (COLA) for persons receiving CalWORKs grants, as proposed by the Governor in January. This reduction totals $79.1 million in State general funds during the 2009-2010 State budget year.
CDCAN COMMENT: The State has suspended (cut) the cost of living adjustment (COLA) for the CalWORKS grant, 18 times since 1990 (the State budget years for 1990-1991, 1991-1992, 1992-1993, 1993-1994, 1994-1995, 1995-1996, `1996-1997, 1997 to 10/31/1998, four month suspension in 1998-1999, 3 month suspension 2000-2001, 3 month suspension 2001-2002, eleven month suspension in 2002-2003, three month suspension in 2004-2005, suspension for the full budget years of 2005-2006, 2006-2007, 2007-2008, 2008-2009 and 2009-2010.* PAY FOR PERFORMANCE COUNTY INCENTIVE PROGRAM - Suspends this program, as proposed by the Governor in January. This reduction totals $40 million in 2009-2010 State budget year.
* LA COUNTY AUTOMATED SYSTEM - Delays by 6 months the replacement of Los Angeles County’s automated benefit and eligibility determination system, as proposed by the Governor. This results in a savings that totals $14.6 million in State general funds during the 2009-2010 State budget year.

CALWORKs CUT IN THE STATE BUDGET THAT WILL NOT HAPPEN
* 4% permanent cut to the CalWORKS grant level, reducing grants by $29 a month for a family of three ($723 a month to $694 a month). [will NOT happen]
* If this cut happens (and it won’t) it would mean a cut that totals $146.9 million during the 2009-2010 State budget year that begins July 1, 2009. .
. CDCAN COMMENT: This cut to the CalWORKs grant level in the budget will NOThappen if a certain level of money comes to California from the federal economic stimulus bill. It is certain that enough money is coming, so this cut will not happen – but it

CALWORKS CUTS PROPOSED BY GOVERNOR REJECTED
* REJECTED - Governor’s proposal to change the Safety Net Program, by imposing a 60 month time limit on assistance for certain child-only cases, implement a 6 month self-sufficiency review requirement, and reduce grants by 10%.
* REJECTED - Governor’s proposed shift of $216.9 million in federal funds from CalWORKs to the Department of Developmental Services and the California Student Aid Commission.

TRANSPORTATION
CDCAN COMMENT: Accessible and affordable public transportation – along with accessible and affordable housing, and any needed supports and services, are critical parts of the foundation for a person with disabilities, mental health needs, seniors and others to live in their own homes and in their own communities.

TRANSIT FUNDING SHIFT (CUT)
* Shifts or transfers $153 million in State general funds our of the 2008-2009 State budget to the State general fund in order to fund mass-transportation programs in the Department of Social Services and public (K-12) education.
* Will continue this transfer or shift for four more years (2009-2010 State budget year to and including the 2012-2013 State Budget year), which will total $306 million for each of those additional four years.

PROPOSITION 42 FUNDING
* Fully funds in the budget for the current 2008-2009 and 2009-2010 State budget years, funding for Proposition 42
* Amount for the 2009-2010 State budget year is estimated to be $1.7 billion, about $300 million higher than what is projected for 2008-2009, due to the 1 cent increase in the State sales tax.


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