Summary of HHS Budget Cuts for Fiscal 2011 & Beyond

COMMITTEE ON BUDGET & FISCAL REVIEW
Room 5019, State Capitol
Sacramento, CA 95814
SENATOR MARK LENO, CHAIR
Budget Conference Committee Action
Quick Summary
Updated March

This is the portion of the proposed budget that directly involve the Disabled Population of the State of California

Health and Human Services

Achieved total expenditure cuts of over $6.0 billion in the Health and Human Services area. The Conference version of the budget retains many of the painful cuts proposed by the Governor, but in many instances found alternative solutions that mitigate or reduce impacts to children, the disabled, and the elderly. The major reductions include the following:
Medi-Cal: Achieved over $1.6 billion in GF expenditure cuts in the
Medi-Cal program. Reinstates the previously enacted 10-percent
provider payment reductions for savings of $547 million. Approved
many of the Governor’s “co-pays” and “hard caps” on services, but
rejected the hard-cap on physician and clinic visits, medical supplies,
equipment, and prescriptions. Found other savings not identified by
the Governor.
Adult Day Health Care (ADHC): Rejected the Governor’s proposal
to eliminate this activity permanently, but instead eliminated the
benefit and provided $85 million to provide a “bridge” to a new
optional benefit that will serve a higher acuity patient.
 Multipurpose Senior Service Program (MSSP): Rejected the full
elimination of this program and instead reduced funding by
$2.5 million or 13 percent.
 Proposition 10: Approved the 2011-12 shift of $1.0 billion of
Proposition 10 funds from State and local reserves to Medi-Cal.
 Proposition 63: Approved the shift of about $860 million in
Proposition 63 funds from counties on a one-time basis to backfill for
General Fund support for three mental health programs the Governor
proposes to realign to counties.
Developmental Services: Achieved over $500 million in expenditure
savings in Developmental Services. Approved implementation of
statewide purchase of service standards at a reduction level of
$174 million, in lieu of the Governor’s $424 million reduction.
SSI/SSP: Approved the Governor’s proposal to reduce Supplemental
Security Income/State Supplementary Payment (SSI/SSP) to the
minimum allowed by a federal maintenance of effort requirement for
savings of $192 million.
CalWORKS: Achieved about $1.1 billion in expenditure cuts in the
CalWORKs program. Approved an eight percent grant cut to save
$300 million. Approved the Governor’s proposal to reduce the timelimit
for adults to receive assistance from 60 months to 48 months, but
rejected the Governor’s proposal to apply a 48-month time limit to
safety net and child-only cases. Instead adopted additional grant cuts
for safety net and child-only cases that exceed 60 months to generate
savings of $100 million. Increased the Governor’s cut to the county
single allocation from $377 million to $427 million. Added savings
of $100 million from adjusting the earned-income disregard.
IHSS: Achieved the Governor’s saving number of $486 million in
In-Home Supportive Services (IHSS) program, but reduced the
proposed across-the-board service cut and the proposed domestic and
related cut.
Found other savings not proposed by the Governor, such
as the Community First Choice Option to obtain $121 million in
additional federal funds.