CDCAN REPORT #058-2011: Budget Conference Committee adjourns for the day and meets again Monday

• BUDGET CONFERENCE COMMITTEE ADJOURNS FOR THE DAY AND WILL MEET AGAIN ON MONDAY – NO ACTION YET ON IHSS, ADULT DAY HEALTH, MSSP
• Takes Final Action on Budget Language Authorizing Department of Development Services to Develop and Submit to Legislature  Possible Later Approval A Proposal Calling for “Statewide Standards for Regional Center Purchase of Services” Meant To Significantly Limit and Reduce Spending for Regional Center Community-Based Services

SACRAMENTO, CALIF  (CDCAN) [Updated 02/25/2011 – 02:04 PM  (Pacific Time)] –  The Budget Conference Committee convened this morning just after 10:00 AM and approved 10-0 legislative language that directs the Department of Developmental Services to develop and submit for Legislative review and possible later approval (in June), statewide standards that would impose limits on spending of regional center community-based services and supports.  With that action, there are no other budget items under developmental services (regional centers) left on the Budget Conference Committee agenda.  The level of the over all reductions and the other proposed trailer bill language was previously approved by both houses last week, rolling it back by about $226 million in State general funds.

The Budget Conference Committee, chaired by Assemblymember Bob Blumenfield (Democrat – Van Nuys, 40th Assembly District) adjourned at 1:11 PM and will reconvene on Monday, at the State Capitol in Room 4203,  the exact time to be announced to continue work on its agenda – though likely immediately after the floor sessions in both houses. 

Next Steps on Budget for Legislature

• Budget Conference Committee meets again on Monday to continue and possibly finish its work  by this day or by Tuesday (March 1)
• Final vote on entire budget package could happen as early as late next week
• Governor Brown, who made a surprise appearance for about 45 minutes before the Budget Conference Committee yesterday morning, wants the Legislature to send him the budget package no later than March 10th, in order to meet certain local and state deadlines for a special election in June that he wants to call for voters to consider approving.  Two of those measures he wants the Legislature to place on the ballot that would extend for five years temporary tax increases that are scheduled to end this year. 
• In addition a 3rd ballot measure – placed there by petition separate from Governor Brown’s proposals – calls for increase in the tobacco tax for cancer programs – will also be on a June special election ballot if one is called.  Tobacco companies have vowed to fight that initiative – and complicates the chances of passage of the proposals by Governor Brown to extend the temporary taxes.

Budget Conference Committee Doesn’t Approve Statewide Standards for Regional Centers But Authorizes Development of a Proposal For Later Approval

The action by the Budget Conference Committee today approves the Governor’s proposal for the development – but does not approve any actual standard of a “Statewide Standards for the Purchase of Services” – standards that are meant to limit spending for community-based services under the regional centers.

Assemblymember Blumenfield said that the proposed budget trailer bill language authorizing development – but not approval -  of a proposal for “statewide standards” would have the impact of “moving the language…making clear what we are doing in trying to achieve savings”

Blumenfield said that they wanted  to make sure that three things were done:

1. Protect consumers by providng lcear notification procedures
2. Outline transparent process to develop purchase of services best practices
3. Any implementation must be vetted and approved by the Legislature, specifically the budget committees.

Blumentield said that the “the whole goal of this is to keep the reductions as far away from the consumers as possible so every Californian can live with freedom and dignity of choice.  And that’s the point of it and that is what the direction is and I think we can close it out as long as we are clear on the direction of that language.”  No other member of the Budget Conference Committee made any comments regarding this issue during the hearing.

The Department of Finance representative, representing the Brown Administration said that “…we are happy to look at the language but the Administration will want to make sure that the amount scored is achievable based on the [new] language”

The issue is controversial for advocates because of concerns that the standards would have the impact of possibly significantly reducing services, narrowing eligibility, limiting or ignoring individual needs, limiting access to services by imposing co-payments.  Similar proposals were advanced unsuccessfully by Governor Davis in 2002, and 2003 and again by Governor Schwarzenegger in 2004.

Governor Brown’s proposal makes it clear that imposing statewide standards – as was the case in proposals by Davis and Schwarzenegger – is meant to reduce State general fund spending significantly. 

No Action Yet on IHSS, MSSP, Adult Day Health

• The Budget Conference Committee heard but kept “open” yesterday for later action likely on Monday on budget issues on its agenda dealing with In-Home Supportive Services, Adult Day Health Care, Multipurpose Senior Services Program (MSSP) and realignment of several State programs and funding to counties. 
• The committee also heard today [Friday, February 25] but kept “open” for later action likely on Monday, budget items dealing with foster youth Transitional Housing Program Plus reductions, proposal to eliminate the mandates under the State’s open meeting law (called the “Brown Act”) impacting local government. 

Budget Committees Took Identical Action Last Week on Level of Cuts to Developmental Services

• Last week both Assembly and Senate Budget Committees took final identical actions in approving the level of reduction that the statewide standards would need to achieve - $150 million in reductions in state general fund spending for regional center community-based services. 
• That $150 million reduction in State general fund spending is on top of other cuts in State general fund spending – some of which includes new federal matching funds and fund shifts, that both the State Senate and Assembly Budget Committees approved last week. 
• Both Senate and Assembly approved identical actions that lowered the Governor’s proposed cuts in State general fund spending for developmental services (including regional centers), from $750 million to about $530 million. 
• That $530 million or so total reductions in State general fund spending for developmental services – including regional centers that provide assessments and coordinate funding for community-based services for over 240,000 children and adults with developmental disabilities, plus thousands of infants with developmental delays in the State’s early intervention program (called “Early Start”).
• That  reduction of about $530 million in State general fund spending would be achieved in two basic ways – new federal money or fund shifts and actual spending cuts:

New Federal Funds & Fund Shifts That Reduce State General Spending for Developmental Services: 

• $13 million reduction in State general fund spending as a result of increased Federal Funds for Porterville Developmental Center consumers
• $50 million reduction in State general fund spending due to a shift of  Proposition 10 funds to developmental services
• $60 million reduction in State general fund spending due to new federal 1915 (i) Medicaid Waiver funds
• $10 million reduction in State general fund spending due to new “Money Follows the Person” federal Grant,
• $15 million reduction (savings)  from the action by both Assembly and Senate Budget Committees in rejecting Medi-Cal hard caps on physician visits (if it was approved it would have shifted costs to regional centers)

Actual spending cuts that reduce State general fund spending for developmental services (including those that the Brown Administration would like to achieve through use of Statewide Standards on the Purchase of Services):

• $91.5 million reduction in State general funds by adopting budget trailer bill language to continue  the 4.25%  reduction in payments to most regional center providers and to regional center operations
• $13.2 million reductions in State general fund spending resulting from Developmental Center reductions
• $11.2 million reduction in State general fund spending from regional center operations savings.
• $109.6 million reduction in State general fund spending resulting from increased Administrative Accountability and Transparency at regional centers for regional center Conflict of Interest, Third Party Liability, Audits, Contracts and Direct Services and regional center Accountability and Transparency. Both houses approved “placeholder” budget trailer bill language.   [CDCAN Note: “placeholder” trailer bill language means legislative language is needed for this issue that still needs to be finalized or drafted]*
• $150 million reduction in State general fund spending resulting from developing and implementing Statewide Standards for Purchase of Services that would place limits on regional center community-based spending.

Both the Senate and Assembly Budget Committees also approved the following budget “trailer bill” language (none of which impacts the overall level of reduction amount) for the following:

• DevelopmentalCenterAutomatic Sprinkler System – (Assembly Budget Committee approved this proposal 2/18 – Senate Budget Committee approved on 2/17)
• SonomaDevelopmental CenterMedical Gasses and Oxygen Piping - (Assembly Budget Committee approved this proposal 2/18 – Senate Budget Committee approved on 2/17)
• Trailer Bill Language: Medi-Cal Managed Health Plans for Lanterman Developmental Center Transition -  (Assembly Budget Committee approved this proposal 2/18 – Senate Budget Committee approved on 2/17)
• Trailer Bill Language – Prevention Program (to allow transfer of funds) -  (Assembly Budget Committee approved this proposal 2/18 – Senate Budget Committee approved on 2/17)

Both the Assembly and Senate REJECTED the following proposed budget trailer bill language (the only one it rejected):

• FairviewDevelopmental Center– Upgrade of Fire Alarm System (Assembly Budget Committee rejected Feb 18th and the Senate Budget Committee rejected on February 17th.)