CDCAN REPORT #048-2011: Senate Budget Committee rejects Governor's proposal to eliminate MSSP but okays $5 million cut

SENATE BUDGET COMMITTEE REJECTS GOVERNOR’S PROPOSAL TO ELIMINATE MULTIPURPOSE SENIOR SERVICES PROGRAM (MSSP) BUT OKS $5 MILLION CUT – APPROVES SSI/SSP INDIVIDUAL GRANT CUT

Senate Budget Panel Rolls Back Governor’s Proposal to Cut Foster Youth Transitional Housing Program Plus From $19 Million to $5 Million

SACRAMENTO, CALIF  (CDCAN) [Updated 02/17/2011 – 01:01  PM  (Pacific Time)] –   The Senate Budget and Fiscal Review Committee voted today to reject the Governor’s proposal to eliminate the Multipurpose Senior Services Program (MSSP) and instead approved the recommendation made by the Legislative Analyst Office (LAO) that calls for a $5 million cut in State general funds.  The program is a Medicaid (Med-Cal) funded service under a waiver.

The Senate budget panel also approved the Governor’s proposed cut to individual SSI/SSP maximum monthly grants from $845 to $830, but rejected the Governor’s proposal to cut the foster youth Transitional Housing Program Plus by $19 million in State general funds and instead, reduced that cut to $5 million.

Another Medi-Cal funded program, Adult Day Health Care – that seniors in the Multipurpose Senior Services Program use – and that the Governor proposed for elimination, will be up for final action tomorrow (Friday, February 18th) in both the Senate and Assembly Budget Committees.

Assembly Will Take Up Budget Issues Friday – Then Full Assembly and Senate Need To Give Final Approval Within Next Two Weeks

• The Assembly Budget Committee will take up these and all other open budget items tomorrow (Friday – February 18th) including Medi-Cal, regional centers, In-Home Supportive Services, CalWORKS. 
• The Senate Budget and Fiscal Review Committee also meets again tomorrow for its final hearing on several issues – including In-Home Supportive Services and CalWORKS.   
• The actions by both budget committees still need final approval from the full State Senate and Assembly when the entire budget package is taken up in floor votes – likely the last week of February or first week of March.

No Opposition on Senate Budget Committee’s MSSP Action

• The Governor’s proposal called for eliminating the entire program by June 1, 2011. 
• The Senate budget committee action on MSSP to reject the Governor’s proposal and instead impose a $5 million reduction (State general funds) was made with no opposition and support from both Democrats and Republicans.
• Sen. Bob Huff (Republican – Diamond Bar, 29th State Senate District) said Senate Republicans were willing to support the Governor’s proposal, but were willing to support the alternative proposal put forward by committee Democrats.   
• The Legislative Analyst Office recommendation also included a direction to the Department of Aging to negotiate with the federal Centers on Medicare and Medicaid Services (CMS) to reduce program operating costs and that if those costs cannot be reduced, to then look at reducing caseload.
• The program serves over 11,000 seniors over the age of 65 who are Medi-Cal eligible and certified by a doctor for placement in a long term care facility but who want to remain in their own homes and community.   Community-based services are coordinated through 41 organizations under contract with the Department of Aging, who provide mostly care management services, connecting individuals to necessary services. The program can also purchase specified services if the client’s informal support and other sources of private and public services are exhausted.
• The Multipurpose Senior Services Program funded services can include adult day care, which the Governor proposed for elimination; housing assistance, personal care assistance (under In-Home Supportive Services which the Governor has proposed for reductions), protective supervision, care management, respite, transportation, meal services, and other services.

Senate Budget Committee Approves SSI/SSP Individual Grant Cut

• The Senate Budget and Fiscal Review Committee however approved without opposition the Governor’s proposal to cut the maximum individual SSI/SSP (Supplemental Security Income/State Supplemental Payment) monthly grant from $845 to $830 per month that will impact over 1 million persons with disabilities (including developmental), the blind and low income seniors. 
• About 8,000 persons who have other income sources and currently receive only $15 in SSI/SSP benefits would, with enactment of this reduction, would be eliminated from the program.

Senate Budget Panel Rejects Governor’s $19 Million Cut To Foster Youth’s Transitional Housing Program Plus (THP-Plus) And Instead Reduces Reduction to $5 Million With Intent Language That No Beds Be Lost

• The Senate Budget and Fiscal Review Committee, in its final action before adjourning today’s hearing (shortly before 1:00 PM) voted, without opposition, to reject the Governor’s proposal for a $19 million reduction in State general fund spending for the foster youth Transitional Housing Program Plus (THP-Plus) and instead reduced that cut to $5 million. 
• The budget panel also included in the motion that budget bill intent language be included underscoring that even with the $5 million cut, that no beds be lost.
• Sen. Bob Huff (Republican – Diamond Bar, 29th State Senate District) said Senate Republicans were willing to support the Governor’s proposal regarding the transitional housing program, but were willing to support the alternative proposal put forward by committee Democrats.   
• The Transitional Housing Program (THP-Plus) provides up to two years of transitional housing and supportive services to former foster youth.
• According to the State, last year, there were approximately 1,400 young adults and 168 of their children living in Transitional Housing Program Plus in 52 California counties.
• Beginning January 1, 2012, 18 year olds who opt to remain in foster care, when AB 12 (Chapter 559, Statutes of 2010)  goes into effect under a phased in approach, will have the option of living in foster care Transitional Housing Program Plus among other placement types, with newly available federal matching funds.  Under AB 12, this option will apply to 19 year olds who opt to remain in foster care as of 2013, and 20 year olds as of 2014.
• Sen. Leno said it was important that the infrastructure of the Transitional Housing Program Plus and other placement types be preserved for former foster youth ages 18 through 20 as AB 12 becomes effective.
• Many foster youth have special needs or disabilities, including mental health needs.