California's State Budget

The budget process moves to its next critical step before final votes are taken by the full Assembly and State Senate.  A special joint committee, called a "Budget Conference Committee," is scheduled to meet Wednesday morning for an overview and Thursday morning to begin work on specific budget items, many dealing with health and human services.  Hearings will be televised and webcast live on CalChannel (www.calchannel.com)

The Budget Conference Committee approved legislative language which directs the Department of Developmental Services to develop and submit for Legislative review, and possible later approval, of statewide standards that would impose limits on spending of regional center community-based services and supports.  The Budget Conference Committee took no action on IHSS, Adult Day Health Care or Multipurpose Senior Services Program.

The Budget Conference Committee met just under two hours Monday afternoon from about 3:15 PM to just before 5 PM focusing only on the Governor’s proposal to transfer, or “realign” certain state services to the counties, including certain public safety and mental health community-based services.  This report also includes a CDCAN compiled summary of the Governor's proposals and previous actions by the Assembly and state Senate on Adult Day Health Care, Multipurpose Senior Services Program and In-Home Supportive Services.

The Budget Conference Committee released additional agenda items that include increasing reductions to the Medi-Cal program by imposing “soft caps” instead of the Governor’s proposed “hard caps” on certain Medi-Cal services and extend the 10% rate reduction to additional Medi-Cal providers. The committee also is looking at a new agenda item that would increase the reduction to developmental services by another $50 million in State general funds.

The Budget Conference Committee, which just convened, intends to approve additional reductions to the CalWORKS program – the State’s “welfare to work” program that includes many children and parents with special needs and disabilities.  Over 500,000 families and 1 million children are in the CalWORKs program.  A copy of the one page addition to the existing conference committee agenda dealing with the new CalWORKS reductions is attached as a document pdf file.

The  Budget Conference Committee voted to approve the Governor’s proposal to eliminate the Adult Day Health Care program.  The committee also took action to appropriate $85 million to transition people into a “new” version of the program.  The committee also approved major new reductions on CalWORKS, Medi-Cal, elimination of redevelopment agencies and an additional $50 million reduction in state general fund spending to developmental services.

The Budget Conference Committee among its final actions late this afternoon, approved a $128.3 million State general fund reduction to the In-Home Supportive Services (IHSS) program, in addition to what was previously approved, but left open for later final action on how that reduction will actually be achieved.

The crucial revenue part of the Governor’s plan remains to be voted on – still lacking the needed 2 Republican votes in each house.  Until the Legislature is able to take action on that crucial part of the Governor’s budget, the on-going budget crisis will continue unresolved with the prospect of more enormous sweeping reductions.

Governor Brown signed into law several budget related bills that authorize changes in State law to implement at least $8 billion in cuts in State general fund spending, including over $6 billion in cuts to health and human services impacting children and adults with disabilities, mental health needs, the blind, seniors, their families, community organizations and individual support workers and low income families across California.

Governor Brown ends budget talks with legislative Republicans - Democrats likely to take other steps for temporary tax hike extensions - threat of more spending cuts loom to make up lost revenues.  The State Assembly and Senate met briefly earlier today in floor sessions, but no action on budget.  Will meet on Thursday though not clear if they will take up budget issues.

State Senate and Assembly meet and adjourn until Monday.  No official floor action on budget and threat of more spending cuts loom with revenue piece of Governor's plan stalled.

Governor Brown today released the actual bill language of seven separate public pension reform measures, though how it impacts the budget stand-off with legislative Republicans is not certain.

Assembly Speaker John Pérez announced Assembly Democrats would hold a series of summits across the State with “frontline educators, business leaders and public safety responders” to focus on a “balanced budget solution.”

The Department of Developmental Services released a draft proposal which provides details on how it wants to achieve a $174 million reduction and savings in State general fund spending for developmental services that serve over 240,000 children and adults with developmental disabilities and thousands of infants with developmental delays.

Governor Brown released this morning his proposed revisions to his 2011-2012 State Budget that calls for no additional major budget reductions beyond what was either proposed in January or enacted in March, and still proposes – subject to voter approval in a special election – a five year extension of most of the 2009 temporary tax increases.   The Governor's plan assumes that the 2009 temporary tax increases will be extended effective July 1st with voter approval in a special election to follow, possibly in the fall, if the Legislature is able to get the necessary 2/3rds vote in both the Assembly and State Senate.

The State is moving forward to shift up to 150,000 of the over 1.1 million people with disabilities and seniors who are eligible for both Medicare and Medicaid (called “Medi-Cal” in California) from their current “fee for service” plans into managed health care pilot projects in four counties by November 2012.   Those persons eligible for both Medicare and Medi-Cal are sometimes referred to as “dual eligibles” or “Medi-Medis” and also includes many persons with developmental disabilities. 

The State Senate approved AB 98, the revised main budget bill, this afternoon and several budget trailer bills. The State Senate is certain to fall short of the needed two-thirds vote to pass the key budget related bills dealing with extending the 2009 temporary tax increases.

The State Senate met for about 35 minutes, approving 3 largely non-controversial budget related bills before adjourning.  There was no action – nor any agreement reached yet on the crucial revenue piece of the spending plan for 2011-2012.

Governor Jerry Brown signed SB 87, the main budget for the State's 2011-2012 budget year that begins on Friday, July 1.  The Governor kept in the budget the funding restored by the Legislature for Adult Day Health Care but deleted a provision in the budget that requires a specified spending level for the program during the 2011-2012 State Budget year because "it does not consider other services available to these individuals [using Adult Day Health Care] that preserve their ability to remain in the community."

In addition to signing early this afternoon SB 87, the main State budget bill for 2011-2012 passed by legislative Democrats on a strict party-line majority vote, Governor Brown also signed into law 10 budget "trailer" bills, including three dealing with the so-called "trigger cuts" that are linked to about $2.5 billion in additional spending cuts to go into effect sometime after January 2012 if a certain level of revenues do not come into the State treasury as hoped for in the budget. 

Governor Brown vetoed AB 96, the budget trailer bill that calls for the creation of a new model of Adult Day Health Care saying such a new "...look-alike program at this juncture is unnecessary and untimely," in an action that is sure to disappoint and anger tens of thousands of people with disabilities and seniors, their families, hundreds of community-based providers and thousands of workers who provide those services. The Governor as expected, signed a less controversial budget trailer bill also dealing with adult day health centers - SB 91, that would allow those centers to continue to operate as licensed facilities without the requirement of being certified as a Medi-Cal provider.

State Controller John Chiang released his monthly report covering California's cash balance, receipts and disbursements in July, showing State revenues were down $538.8 million (-10.3%) below projections from the 2011-2012 State Budget that was signed into law by Governor Brown June 30th - a trend, if it continues - that could trigger additional sweeping State budget reductions impacting hundreds of thousands of people with disabilities, mental health needs, the blind, seniors and others across California.

Controller John Chiang released his monthly report covering revenues, including cash balance, receipts and disbursements for August, showing revenues came in $134.9 million above (2.1%) projections from the recently passed 2011-2012 State Budget.  Though fears the State budget "trigger cuts," which will impact a wide range of programs including developmental services and In-Home Supportive Services, remain because the revenue numbers are soft.