CDCAN Report #095-2010: AB 3632 Mental Health Mandate for Special Education Students Will Go To Budget Conference Committee for Further Discussion and Final Action

Governor’s Proposed Suspension of AB 3632 Mental Health Services Mandate For Special Education Students Will Go To Budget Conference Committee For Further Discussion and Final Action

SACRAMENTO, CALIF (CDCAN) [Updated 05/27/2010 03:50 PM (Pacific Time)] - The Senate Budget and Fiscal Review Committee, chaired by Sen. Denise Ducheny (Democrat – San Diego), took action this afternoon that sends to the budget conference committee for further discussion and action, the Governor’s proposal to suspend the AB 3632 Mental Health Services mandate for special education students.

The Senate Budget and Fiscal Review Committee, as of 3:45 PM, is still meeting, wrapping up its final agenda items dealing with public education budget issues.  Aside from the AB 3632 budget item, today’s Senate budget hearing had no other health or human service budget issue on its agenda.

The Assembly Budget Subcommittee #1 on Health and Human Services earlier today, in its final hearing for this budget year, voted to reject entirely the Governor’s proposal.  With the Senate and Assembly actions different, the issue is required to go to the budget conference committee.

The issue of suspending the 1984 legislation authored by then Assembly Speaker Willie Brown, is considered critical by mental health and disability advocates because they contend special education students would face loss or disruption of critical mental health services.

Earlier, in a related mental health budget issue, the Assembly Budget Subcommittee #1 on Health and Human Services in its final hearing for this budget year, voted to reject the Governor’s proposal to reduce by $602 million funding to the counties for mental health community services, which represents a 60% cut of the funding counties received from the state for this purpose.   The Senate Budget and Fiscal Review Committee rejected this proposal on Wednesday.

No action at this stage – or even later, especially with an enormous budget shortfall that remains largely unresolved -  is absolutely final until a budget is actually passed by the Legislature and signed into law by the Governor.

Conference Committee Is Risky Phase for Any Budget Issue On Its Agenda

The next phase of the budget process is budget conference committee, composed of 6 members – 3 members from the Assembly (2 Democrats and 1 Republican) and 3 members from the Senate (2 Democrats and 1 Republican) to review those budget issues where each house took a different action.

In most instances the budget conference committee is considered a risky phase for any budget issue going before it because it keeps a budget item open for potentially larger cuts or other major policy changes.  During that phase of the budget process, especially with an enormous unresolved budget shortfall of nearly $20 billion, policymakers will be scrambling to find any money to fill that huge gap.

AB 3632 Was Authored by Then Assembly Speaker Willie Brown

The federal Individuals with Disabilities Education Act (IDEA) entitles all students with disabilities and/or  mental health needs to a “free, appropriate public education” that prepares them to live and work in the community.  The federal law includes a requirement for mental health services for children in special education in order to benefit from public education. Under federal law, these children can receive services regardless of their parents’ income level.

Prior to 1984, schools were entirely responsible for providing these mental health services for students in special education who needed them.  With major concerns that students with mental health needs were not receiving needed and necessary mental health services as required by federal law, in 1984, then Assembly Speaker Willie Brown (Democrat – San Francisco) authored AB 3632 required the counties to provide these services for students who qualify for them.

Like other state mandates or requirements, the State has not fully reimbursed the counties for these services, forcing them to use other funding. The Department of Mental Health reported to the Legislature that claims for the past three State budget years totaled $211.9 million, of which the State paid $51.2 million from the 2009-2010 claim, leaving a balance of $160.7 million still owed to the counties.

The Governor’s proposed suspension would mean the counties would not be responsible for providing these mental health services – with responsibility falling back on the schools.  Community mental health advocates from nearly every side of the issue felt suspension would cause “chaos” and “confusion” and loss of critical mental heath services for students who need them.   Others pointed out that the schools have not been able in the past, prior to AB 3632,  to meet the requirements of providing needed mental health services for special education students. Those problems, advocates pointed out, were was the main reason in 1984 for AB 3632.

MAJOR MENTAL HEALTH ISSUES

Mental Health Community Services: Governor’s proposal to reduce by 60% ($602 million state general funds) funding to the counties for mental health community services.

  • SENATE action as of 05/26/2010:  On May 26th the Senate Budget and Fiscal Review Committee REJECTED the Governor’s proposal by vote of 10 to 0.
  • ASSEMBLY action as of 05/27/2010:  On May 27th the Assembly Budget Subcommittee #1 on Health and Human Services REJECTED the Governor’s proposal by vote of 5 to 0.

AB 3632 Special Education Mandate for Students with Mental Health Needs: Governor proposed suspending this mandate (requirement) and eliminates $52 million (State general funds) that would have gone to the counties for this purpose. 

  • SENATE action as of 05/27/2010:  On May 27th the Senate Budget and Fiscal Review Committee REJECTED the Governor’s proposal that was part of his May 14th budget revisions but made a $1,000 reduction to the Governor’s January proposed budget funding for the AB 3632 mandate for the purpose of sending the issue to Budget Conference Committee to continue discussions to see if a different funding stream for the program could be found  [Note: the $1,000 reduction is just a technical way for the Senate Budget Committee to send this issue to Budget Conference Committee for further discussion and final action]
  • ASSEMBLY action as of 05/27/2010:  On May 27th the Assembly Budget Subcommittee #1 on Health and Human Services REJECTED the Governor’s proposal. 
  • NEXT STEPS: Issue goes to Budget Conference Committee, which could meet as early as next week.  No public testimony is taken at conference committee hearings – though all hearings are open to the public and televised. 
  • CDCAN COMMENT:  Several advocates – including those representing counties and county mental health services, urged rejection of the Governor’s proposals, though some said that outright repeal of the mandate would be preferable because of the confusion that would result in suspension. Many advocates urged that a workgroup be formed to consider alternatives and to carefully review and consider the impacts of any proposal to change or eliminate the mandate.