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SENATE BUDGET SUBCOMMITTEE REJECTS GOVERNOR’S “TRIGGER PROPOSALS” ON IHSS, CALWORKS LINKED TO NEW FEDERAL FUNDING

Proposal Would Have Eliminated – If Trigger Was Pulled – Entire IHSS, CalWORKS and Former Foster Youth Transitional Housing Programs If $6.9 Billion in New Federal Funds Did Not Come To California by July 15, 2010 – Action Not Taken Yet on Any of the Governor’s Other Major Proposed Cuts To IHSS, CalWORKS & Other Health and Human Services

SACRAMENTO, CALIF (CDCAN) [Updated 03/18/2010  08:00 PM  (Pacific Time)] - The Senate Budget Subcommittee #3 on Health and Human Services, in a long hearing held today on some of the Governor’s proposed human services budget issues, rejected by a vote of 2 to 0, the Governor’s “trigger proposals” that would have eliminated the entire In-Home Supportive Services (IHSS), CalWORKS and Transitional Housing Program Plus for former foster youth if it was determined that at least $6.9 billion in new federal funds did not come to California on or before July 15, 2010.   [Note: see separate CDCAN Report later for a more detailed report on the hearing including testimony given]

Voting to reject the Governor’s “trigger proposals” were the 2 Democrats on the three member subcommittee: State Sen. Mark Leno (Democrat – San Francisco, 3^rd State Senate District), the subcommittee chair , and State Sen. Elaine Alquist Kontominas Alquist (Democrat – Santa Clara, 13^th State Senate District).   Absent from the entire hearing and not voting was the lone Republican member – State Sen. Roy Ashburn (Republican – Bakersfield, 18^th State Senate District).

The Assembly Budget Subcommittee #1 on Health and Human Services has not taken action yet on the “trigger proposals” impacting IHSS, CalWORKS and former foster youth’s Transitional Housing programs, though hearings are scheduled later this month and early May on issues relating to those two programs.  The Assembly budget subcommittee also held hearings on the Governor’s special session budget proposals impacting those programs in February – but took no action.

What This Action Means – For Now

• No action in the long budget process is technically “final” until a state budget is passed by the Legislature and actually signed by the Governor.  This is especially true when the State faces a nearly $20 billion budget deficit still projected by the end of the 2010-2011 State budget year (June 30, 2011). 
• The action by the Senate Budget Subcommittee today (March 18^th)  means that – at least for now – the Governor’s “trigger proposals” dealing with IHSS, CalWORKS and the Transitional Housing Program for former foster youth, is not part of the State Senate’s version of the Governor’s proposed State budget for 2010-2011.  The Assembly still needs to act on these specific proposals. 
• While it appears the action by the Senate subcommittee is likely final on these 3 specific “trigger proposals” that would eliminate the three entire programs – the Governor could, in May when he submits his revisions or changes to his proposed 2010-2011 State Budget – propose the same “trigger proposals” again – or a different version of those proposals.  In that instance, each house would have to reject those proposals again (though technically, with proposals from the Governor’s “May Revise”,  the Legislature could simply ignore or not approve the proposal – and as a result, it does not become part of the State budget).  .
• Though not likely, either house could also bring up the proposal again or a version of it, even if previously rejected as part of later budget negotiations with the Governor.

Governor’s Proposed 2010-2011 State Budget Called For Sweeping Cuts to Health and Human Services To Help Close Nearly $20 Billion Deficit

• The Governor’s proposed 2010-2011 State Budget released on January 8^th proposed sweeping cuts to many health and human service programs, and also assumed $6.9 billion of new federal funding that would come to California for several programs including health and human services, corrections, and education to help close a projected nearly $20 billion budget deficit. 
• The Governor’s assumption that the State would receive $6.9 billion in new federal funding however had a special provision or “trigger” in the event the Governor’s Department of Finance director determined that the state would not or did not receive that amount of new federal funds on or before July 15, 2010 .  With that determination, the “trigger” would have been pulled that would have completely eliminated the In-Home Supportive Services, CalWORKS and Transitional Housing Program Plus program. 
• The Schwarzenegger Administration estimated, if the trigger was pulled eliminating the 3 programs during the 2010-2011 State budget year, that $2.4 billion would be reduced in State general fund spending, plus an additional loss of $4.8 billion in federal matching funds. 
• It is this “trigger proposal” impacting IHSS, CalWORKS and the Transitional Housing Program Plus for former foster youth that the Senate Budget Subcommittee today (March 18^th)  rejected. 
• This specific “trigger” provision rejected today should not be confused with various “triggers” that the Governor proposed – and the Legislature approved last February and July as part of the revised 2009-2010 State Budget, that was linked to several health and human service program cuts and eliminations – such as elimination of 9 Medi-Cal “optional” benefits for adults including adult dental). Those cuts went into effect – though the reduction linked to one of those triggers dealing with the State’s contribution or “participation” toward IHSS worker wages – was stopped in late June by a federal court order.

Action Not Taken Yet On Governor’s Other Major Proposed Cuts To IHSS, CalWORKS Programs

• The Senate budget subcommittee did not take action however on any of the Governor’s other proposals calling for major cuts to the CalWORKS and the IHSS programs. Those proposals include a 15.7% proposed cut to CalWORKS grants and the Governor’s proposals for sweeping cuts to IHSS by narrowing eligibility that would, if approved, mean nearly 90% of the people currently receiving IHSS would lose eligibility for all services under that program and also a proposal again to reduce the State’s participation toward IHSS worker wages and benefits.  Those proposals are still considered “open” (meaning will take action later on this issue). 
• The Senate Budget Subcommittee heard those issues in hearings earlier last month and will likely not take action until after the Governor’s submits his proposed revisions to his 2010-2011 State Budget in mid-May – sometimes referred to as the “May Revise”.
• The Assembly Budget Subcommittee on Health and Human Services has not yet taken action on any of those proposals yet, though did hear some of the issues in hearings in February.  That Assembly budget panel has scheduled hearings on CalWORKS on April 28^th and on IHSS (along with developmental services), on May 5^th though it is not yet certain yet what action – if any – that subcommittee will take then.

The Three Human Services Programs Impact Thousands of People with Disabilities, Mental Health Needs, the Blind and Seniors Across the State

• The In-Home Supportive Services program serves over 460,000 children and adults with disabilities, mental health needs, the blind and seniors. About 385,000 persons provide the in-home supports and services as IHSS providers or workers across the state.
• The CalWORKS program is the State’s “welfare to work” program that serves over 500,000 families including 1 million children.  Many of those children and parents have disabilities or other special needs
• The foster care program serves thousands of foster children that include many children who have disabilities, special or mental health needs.  The transitional housing program serves approximately 1,400 foster youth who have aged out of the foster care program providing up to two years of transitional housing and support services. 

OTHER KEY ACTIONS TAKEN TODAY BY SENATE SUBCOMMITTEE

In addition to rejecting the Governor’s “trigger proposal”  the subcommittee also took the following actions impacting IHSS:

• IHSS Anti-Fraud/Program Integrity – Rejected 2-0, the Governor’s proposal for $528,000 ($264,000 of that State general fund money) to make permanent 6 additional positions in the Department of Social Services – o top of the previously approved 42 positions authorized in the 2009-2010 State Budget, to implement IHSS-related anti-fraud and program integrity activities.  Held “open” (meaning will take action later on this issue) the Governor’s proposal for $500,000 ($264,000 of that State general funds) for a contract with California State University to help develop a required report to the Legislature.
• Conlan II Court Decisions – held “open” (meaning will take action later on this issue) Governor’s proposals requesting an additional new position in the Department of Social Services to review claims filed by IHSS recipients under a 2006 settlement of a lawsuit, Conlan v. Shewry [then director of the Department of Health Care Services]  (referred to as “Conlan  II” , and Conlan v. Bonta [then director of the Department of Health Care Services],  referred to as “Conlan I” ). That  settlement, approved by the California Court of Appeals  required the State to come up with a plan to make reimbursements to Medi-Cal recipients – including IHSS recipients, for certain out-of-pocket, medically necessary expenses that those recipients paid out beginning in 1997.   The Department of Social Services indicated it needed the additional position because as of January 2009, it was out of compliance with the 120 day timeframe to process claims under the court order.  For more information about the Conlan lawsuits, go to the CDCAN website at www.cdcan.us