CDCAN REPORT #011-2011: Governor proposes huge cuts for developmental services and across the board cuts to IHSS

SACRAMENTO, CALIF (CDCAN) [Updated 01/10/2011 11:40 AM (Pacific Time)] - Governor Jerry Brown, released his proposed 2011-2012 spending plan, is calling for massive permanent reductions to a wide range of state funded programs, including regional centers, In-Home Supportive Services, CalWORKs, Medi-Cal, SSI/SSP, mental health and more.

The Governor proposed this morning over $12.5 billion in spending cuts including over $750 million in cuts to developmental services (regional centers and developmental centers), $1.5 billion cuts to CalWORKS, the state’s “welfare to work” program that includes many parents and children with special needs, $1.7 billion in reductions to Medi-Cal.  Most of these spending cuts would take effect July 1, 2011.

In a press statement issued this morning, Governor Brown said that the spending cuts "…will be painful, requiring sacrifice from every sector of the state, but we have no choice. For 10 years, we've had budget gimmicks and tricks that pushed us deep into debt. We must now return California to fiscal responsibility and get our state on the road to economic recovery and job growth."

All of the Governor’s proposals require approval of the Legislature.

Huge Cuts Proposed for Regional Centers

The cuts to developmental services – including regional centers - total $750 million state general fund spending, to be effective July 1, 2011, including permanent continuation of the 4.25% payment reduction to regional center operations and providers.

IHSS Hit Hard By Cuts

In-Home Supportive Services (IHSS) was particularly hard hit, with a permanent continuation proposed of the existing 3.6% across the board cut in service hours for all IHSS recipients – and an additional 8.4% cut on top of that (effective July 1, 2011) for a total of 12% cut.  In addition as a requirement for eligibility, a doctor’s certification would be required for all persons currently in IHSS or who are applying for services as a condition of eligibility.

The Governor also proposes to eliminate domestic and related services for children under age of 18 years who live at home and eliminate domestic and related services for adults who reside in “shared living arrangements” (with a relative, friend or other person).  The state would allow exceptions to this if the roommate certifies that they cannot provide the domestic or related services or if the shared living arrangement with the other person does not allow for domestic and related services to be shared. 

The Governor also proposes eliminating all state funding for all of the IHSS Advisory Committees.

Governor Proposes Extension of Temporary Tax Increases

He is also proposing placing on a special election ballot in June for voter approval the extension of over $8 billion in temporary tax increases set to expire this year that were enacted in February 2009 as part of the 2009-2010 State Budget passed four months early.

SUMMARY OF PROPOSALS IMPACTING PEOPLE WITH DISABILITIES, MENTAL HEALTH NEEDS, THE BLIND, SENIORS & FAMILIES

Here are some of the proposed reductions (CDCAN will issue within the hour details on these proposed reductions and other proposals in the Governor’s budget plan). CDCAN will issue a separate report with details on the cuts to Medi-Cal and education.

SSI/SSP (Supplemental Security Income/State Supplemental Payment) & Cash Assistance Program for Immigrants (CAPI)

WHAT THE GOVERNOR IS PROPOSING:  Reduce state portion of the maximum SSI/SSP individual grants to the lowest level allowed by the federal government ($845 to $830.  The Governor’s proposal impacts the Cash Assistance Program for Immigrants (CAPI) – the program that provides SSI/SSP level grants to legal immigrants with disabilities, the blind and low income seniors who do not qualify for the SSI grants.

CDCAN NOTE:

The federal government portion would remain at $674, while the state portion would be reduced from the current $171 to $156 for a total of $830 per month).  The Legislature in 2009, already reduced the state portion of the SSI/SSP grants to couples to the lowest level permitted by the federal government ($1,407 per month or $396 for the SSP or state portion and $1,011 for the SSI or federal potion of the grant)

Also in 2009 the Legislature approved the Governor’s proposal to permanently eliminate the state cost of living (COLA) for the SSP (including CAPI) part of the grants for individuals and couples (after suspending the increase for several years)

There has been no cost of living increase for the federal SSI part for January 2010 or for January 2011 because economic measurements the federal government uses did not require it.

DEVELOPMENTAL SERVICES (regional centers and developmental centers)

WHAT THE GOVERNOR IS PROPOSING:

• $750 million (state general fund) reduction in spending for developmental services under the Department of Developmental Services.  Part of that reduction will come from reducing funding for growth.  The Brown Administration in proposing this cut would maintain the Lanterman Act entitlement and include additional federal funding (to off set State general fund spending) for Porterville.  It would assume continuation – likely permanent of the existing 4.25% payment reduction to both regional center operations and providers; assumes $50 million from Proposition 10 money and another $65 million from the Medicaid 1915(i) waiver.  The overall reduction includes – with no dollar amount attached yet – for accountability and transparency measures; and also imposing statewide service standards.   Some of these issues will be discussed in a stakeholder process still to be determined. 
• With exception of some minor adjustments to the current year budget, all the proposed reductions totaling $750 million in state general funds would occur after July 1, 2011 during the 2011-2012 State budget year. 
• Continue the closure and transition process for Lanterman Developmental Center in Pomona as proposed by Governor Schwarzenegger and approved by the Legislature last year.

CDCAN NOTE:

 Over 240,000 infants, children and adults with developmental disabilities are served through community-based services coordinated by the 21 non-profit regional centers and overseen by the Department of Developmental Services.  The department also operates 4 developmental centers and one smaller facility where about 2,000 people with developmental disabilities reside.

The Governor proposed and the Legislature approved in February 2009 and July 2009 reductions to developmental services – including the State’s early intervention program (called “Early Start”) of over $500 million (including lost federal matching funds).

IN-HOME SUPPORTIVE SERVICES (IHSS)

WHAT THE GOVERNOR IS PROPOSING:

• Continue implementation of the IHSS provider tax (that would be matched by federal funds – the provider would not actually pay any tax or fee) for a State general fund savings of $131 million during the 2011-2012 State budget year.
• Permanent continuation of the 3.6% across the board reduction in hours for all IHSS recipients (the current budget would have those reductions end on June 30, 2012) which goes into effect February 1, 2011 for a reduction in state general funds of $65.4 million.
• An additional 8.4% across the board cut reduction in hours (on top of the 3.6%) for all IHSS recipients, effective July 1, 2011 for a reduction to IHSS of $127.5 million state general funds. This reduction will include an appeals process that will allow for waiving this cut for persons at risk.
• Elimination of State general fund spending for all IHSS Advisory Committees for a reduction of $1.6 million (effective July 1, 2011)
• Narrow eligibility for IHSS by requiring all new persons applying for IHSS and reassessments of all persons currently receiving IHSS, a certification by a physician that the person is “at risk” of institutionalization, effective July 1, 2011.  Persons who do not receive this certification from a doctor would lose eligibility for IHSS.
• Eliminate for persons under the age of 18 living at home and receiving IHSS, all domestic and related services (impacting about 7,200 persons) for a reduction of $1.6 million, effective July 1, 2011.  Does not include protective supervision.
• Eliminates for adults domestic and related services who live in “shared living arrangements” with a family member or other adults and relatives, effective July 1, 2011 for a reduction of $235 million.  There would be an exception to this for persons who can document that their domestic and related services needs could not be met “in common” or that the roommate certifies that they cannot provide those services (for example, if the roommate is another person with disabilities). 
• Would propose “realignment” of IHSS by eliminating the county’s required share of funding, making IHSS a state and federal funded program only, effective July 1, 2011 (realignment would also include shifting adult protective services to the counties)

CDCAN NOTE:

Over 436,000 children and adults with disabilities (including developmental), mental health needs, the blind and low income seniors are recipients (as of September 2010) of IHSS.

The Governor’s budget plan includes continuing appeals in federal court to overturn lower court decisions that blocked the State from implementing 2009 cuts to IHSS (reduction of the state participation for IHSS worker wages and reduction or elimination of IHSS services for persons, based on their functional index ranking and functional index ranking (internal assessment tools used by county social workers to determine level of IHSS services)

The 2010-2011 State Budget approved in October 2010 (four months late) assumes a July 1, 2012 effective date for those two reductions unless a court ruling prevents it.

CALWORKS (California Work Opportunity and Responsibility To Kids)

WHAT THE GOVERNOR IS PROPOSING

• Cut maximum grants levels by 13% (effective July 1, 2011)
• Narrow eligibility for persons to qualify for program grants by imposing, retroactively, a 48 time limit. 
• Repeal entirely the “long term reforms” under the Schwarzenegger Administration
• Total state general fund reduction (including shifting of funds) is about $1.5 billion

CDCAN NOTE:

• CalWORKSis the state’s “welfare to work” program that had, as of September 2010, over 576,000 families in the program (and over 1,101,000 children).  Many are parents or children with special needs and disabilities.
• Several of the proposals by Governor Brown are the same or similar to what Governor Schwarzenegger previously proposed.

FOSTER CARE PROGRAM

WHAT THE GOVERNOR IS PROPOSING:

An unallocated reduction of about $19 million to the foster care program.

CHILDREN’S PROGRAM (PROPOSITION 10)

WHAT THE GOVERNOR IS PROPOSING:

Proposes to change Proposition 10 (Children and Families First) approved by voters to allow the funding generated by tobacco taxes for State general fund spending.

CDCAN NOTE:

• This proposal would have to be placed on the June special election ballot for voter approval. 
• Governor Schwarzenegger and the Legislature previously – in May 2009 – attempted to suspend Proposition 10  and temporarily shift funding to the State general fund – but that proposal (like the proposal for Proposition 63) was rejected by a large margin by voters.

HEALTHY FAMILIES

WHAT THE GOVERNOR IS PROPOSING:

• Increase premiums and co-payments
• Eliminate vision care in the program

CDCAN NOTE:

• This program is matched by funding from the federal State Children’s Health Insurance Program (SCHIP) and serves thousands of children from low income families who do not qualify for Medi-Cal.
• The proposals by Governor Brown are basically the same as previous proposals by Governor Schwarzenegger.  No other details yet.