CDCAN REPORT #026-2011: Several critical draft budget trailer (legislative) language released

“WHAT WE ARE SPEAKS LOUDER THAN WHAT WE SAY” – JFK, 1960

REMEMBERING AN AMERICAN HERO:  SUNDAY JANUARY 30th WAS “FRED KOREMATSU DAY”, a Japanese-American who defied and then fought in federal court the executive order by President Roosevelt that interned 120,000 children and adult Japanese-Americans in camps surrounded by barbed wire, hastily built in the deserts and in the most remote parts of the country during World War II – the greatest single act of institutionalization in modern American history.

State Budget Crisis:

• Brown Administration Releases Several Critical Draft Budget Trailer Bill Language Impacting Medi-Cal, Regional Centers, SSI/SSP, CalWORKS
• Draft Trailer Bill Language Are First Details Of How Brown Administration Will Implement Many of the Major Reductions – Several More Draft Trailer Bill Language Have Yet to Be Released On IHSS and other Proposed Cuts

SACRAMENTO, CALIF  (CDCAN) [Updated 01/31/2011 – 11:50 AM  (Pacific Time)] – The Brown Administration released today several important draft legislative language – referred to as “budget trailer bill” language – that provides some details on how some of the proposed reductions to Medi-Cal, regional centers will be achieved.  Draft trailer bill language on SSI/SSP was previously released.   [Note: it is called “trailer bill” because normally, these bills – which make necessary changes in state law to implement a budget proposal – follow or trail the main State budget bill].

The draft trailer bill language goes to the Legislature for approval or changes, as part of their on-going budget subcommittee hearing process.  To date, the budget subcommittees have not yet taken final action on any of the Governor’s major proposed reductions – holding those items “open” for later action likely in mid-February.

Attached to this CDCAN Report are several key draft trailer bill language – all in pdf format (unfortunately nearly all of the drafts are in pdf scanned image format – meaning it was scanned like a photo.  That means a person using a screen reading device cannot “read it”.  We will be re-producing the text in a later CDCAN report.

For these and other trailer bills, go to the Department of Finance website at www.dof.ca.gov and click on “trailer bills”.

Regional Centers (Developmental Services) Program Reduction Draft Trailer Bill Language Now Available:

1. Reductions tied to Regional Centers Administrative Costs (titled “20110131-RegionalCentersAdministrativeCosts201103216.pdf” – 6 pages long)
2. Reductions tied to Regional Centers Audits (titled “20110131-RegionalCenterAudits.pdf”  - 7 pages long)
3. Cuts tied to Regional Centers conflict of interest (titled “20110131-RegionalCentersConflictofInterest.pdf”  - 10 pages long)

Key Medi-Cal Program Reduction Draft Budget Trailer Bill Language Now Available:

1. Elimination of Adult Day Health Care (titled “20110131-EliminateAdultDayHealthCare.pdf”  - 5 pages long)
2. Medi-Cal provider rate reduction (totals 10%)  (titled “20110131-Medi-CalProviderRateReduction.pdf”  - 14 page long)
3. Hard cap on Medi-Cal prescription drugs (titled “20110131-HardCaponMedi-CalServices-Prescriptions.pdf”  - 6 pages long)
4. Limit on Doctor and Clinic Visits (titled “20110131-CapPhysiciansandClinicVisits.pdf” -  5 pages long)
5. Hard cap on Certain Medi-Cal benefits including Hearing Aids, Durable Medical Equipment and Medical Supplies (titled “20110131-CapOnSelectOptionalBenefits-HearingAidsDurMedEquipMedSupp.pdf” – 6 pages long)

SSI/SSP Individual Grant Reduction Draft Budget Trailer Bill Language:

1. SSI/SSP reduction of individual grants from $845 to $830 a month (titled “SSI-SSPIndividualGrantReduction1101850.pdf”  - 4 pages long)

This Week Includes Several Critically Important Subcommittee Hearings

As previously reported, the scheduled this week are critical hearings dealing with the Governor’s proposed permanent reductions – and the draft budget trailer bill language will be brought up during these hearings:

• Medi-cal -  over $1.7 billion to the Medi-Cal program including proposals to eliminate Adult Day Health Centers, place caps and limits on several benefits and services, and impose co-payments on several services  (hearing is scheduled for February 1st – see below for details);
• Regional Centers - proposed permanent reductions in State general fund spending  of over $750 million to developmental services – the bulk coming from regional centers that coordinate community-based ser vices for over 240,000 infants, children and adults with developmental disabilities (hearing set for Feb 3rd),
• In-Home Supportive Services - over $500 million reduction in State general fund spending to the In-Home Supportive Services program (hearing set for Feb 3rd)
• SSI/SSP - proposal by the Governor to reduce the maximum SSI/SSP individual grants from $845 to $830 per month (hearing set for Feb 3rd) 
• CalWORKS– proposal by the Governor to permanently reduce State general fund spending by $1.5 billion to the State’s “welfare to work” program that includes thousands of parents and children with special needs, mental health needs, and disabilities. 

Both houses are holding subcommittee hearings on the same issues – so some of the issues (such as IHSS, Med-Cal, SSI/SSP) were previously heard by at least one house.

CDCAN LIST OF HEARINGS BY MAJOR BUDGET AREA

Following is list of major health and human service budget areas scheduled for hearing as of January 30, 2011, Sunday evening, 8:00  PM. Those hearings with a “high priority” designation by CDCAN are highlighted below in bold and prefaced by *** before the subcommittee name (for those people using screen reading devices):

Adult Protective Services

• 02/08/11 (Tue) – Senate Budget Subcommittee #3 on Health & Human Services
• Assembly Budget Subcommittee #1 on Health & Human Services heard Adult Protective Services budget issues on 01/27.  Kept items “open” for later action.

Aging (Department of Aging programs)

• 02/03/11 (Thu)  – ***Senate Budget Subcommittee #3 on Health & Human Services (includes MSSP budget issue)
• Assembly Budget Subcommittee #1 on Health & Human Services heard Department of Aging budget issues on 01/25  including proposed elimination of the Multipurpose Senior Services Program (MSSP).  Kept items “open” for later action. 

CalWORKS

• 02/02/11 (Wed) – ***Assembly Budget Subcommittee #1 on Health & Human Services
• Senate Budget Subcommittee #3 on Health & Human Services heard CalWORKS  budget issues on 01/27 .  Kept items “open” for later action.

Child Care and Child Welfare Services (Foster Care, Adoption Assistance)

• ***02/02/11 (Wed) – Joint Hearing of Assembly Budget Subcommittees on Health and Human Services and Education Finance on Child Care and Child Development Programs Overview
• 02/02/11 (Wed) – Senate Budget Subcommittee #1 on Education hearing on Child Care issues under Department of Education. 
• 02/08/11 (Tue) – Senate Budget Subcommittee #3 on Health & Human Services (child welfare services budget issues)
• Assembly Budget Subcommittee #1 on Health & Human Services heard child welfare services (including foster care) along with IHSS and SSI/SSP budget issues on 01/27.  Kept items “open” for later action.

Developmental Services (regional centers, developmental centers)

• 02/03/11 (Thu)  - ***Assembly Budget Subcommittee #1 on Health & Human Services – regional centers/developmental centers the only item on the agenda
• 02/10/11 (Thu)  – ***Senate Budget Subcommittee #3 on Health & Human Services – regional centers/developmental centers the only item on the agenda

Education (including special and adult education)

• 02/02/11 (Wed) – Joint Hearing of Assembly Budget Subcommittees on Health and Human Services and Education Finance on Child Care and Child Development Programs Overview
• 02/07/11 (Mon) – ***Senate Budget Subcommittee #1 on Education including special education and budget item relating to Governor’s proposal regarding AB 3632 special education mental health services mandate.
• The Assembly Budget Subcommittees on Health and Human Services, and Education held a joint hearing on January 26th for the budget item dealing with the Governor’s proposal regarding AB 3632.  The item was kept “open” for later action.

Foster Care

• See “Child Welfare Services”

Healthy Families Program

• 02/01/11 (Tue)  – ***Assembly Budget Subcommittee #1 on Health & Human Services (also Medi-Cal)
• Senate Budget Subcommittee #3 on Health & Human Services heard Healthy Families  budget issues on 01/26, along with Medi-Cal .  Kept items “open” for later action

In-Home Supportive Services (IHSS)

• 02/03/11 (Thu)  – ***Senate Budget Subcommittee #3 on Health & Human Services (IHSS, SSI/SSP and Dept of Aging including MSSP)
• Assembly Budget Subcommittee #1 on Health & Human Services heard In-Home Supportive Services budget issues along with SSI/SSP and child welfare services budget issues on 01/27.  Kept items “open” for later action.

Medi-Cal

• 02/01/11 (Tue) – ***Assembly Budget Subcommittee #1 on Health & Human Services
• Senate Budget Subcommittee #3 on Health & Human Services heard Medi-Cal (Department of Health Care Services)  budget issues on 01/26, along with Healthy Families .  Kept items “open” for later action.

Mental Health

• 02/01/11 (Tue) - ***Senate Budget Subcommittee #3 on Health & Human Services
• 02/07/11 (Mon) – ***Senate Budget Subcommittee #1 on Education (budget item under Department of Education relating to Governor’s proposal regarding AB 3632 special education mental health services mandate.
• Assembly Budget Subcommittee #1 on Health & Human Services heard mental health budget issues on 01/26 (AB 3632 budget issues was conducted as a joint hearing with Assembly Budget Subcommittee #2 on Education Finance).  Kept items “open” for later action

Rehabilitation (Department of)

• 02/03 – Senate Budget Subcommittee #3 on Health & Human Services
• Assembly Budget Subcommittee #1 on Health & Human Services heard Department of Rehabilitation budget issues on 01/25. Approved budget change proposals by the department. 

SSI/SSP (and likely CAPI)

• 02/03/11 (Thu) - ***Senate Budget Subcommittee #3 on Health & Human Services
• Assembly Budget Subcommittee #1 on Health & Human Services heard Supplemental Security Income/State Supplemental Payment individual grant (SSI/SSP)  budget issues along with IHSS and child welfare services budget issues on 01/27.  Kept items “open” for later action.

CDCAN LIST OF BUDGET HEARINGS FOR TUESDAY FEBRUARY 1

The following are critical hearings scheduled for February 1st.    CDCAN indicates priority or importance of the hearing if it potentially has issues that directly impact people with disabilities, mental health needs, the blind, deaf, seniors, their families, community organizations, facilities and workers who provide supports and services.  Bolded and marked with *** for those people who have sight impairments or use screen reading devices at those specific budget items of very high priority

***FEBRUARY 1, 2011 - TUESDAY

***ASSEMBLY BUDGET SUBCOMMITTEE #2 ON EDUCATION FINANCE
09:00 AM – State Capitol  - Room 444
Budget Items To Be Heard:

• Department of Education (Budget Item 6110)
• Governor’s Education Proposals for 2011-2012 State Budget
• California Longitudinal Pupil Achievement Data  System (CALPADS) and California Longitudinal Teacher Integrated Data Education System (CALTIDES)
• Economic Impact Aid
• ***Special Education
• Emergency Repair Program
• Mandates
• Public Comment

CDCAN COMMENT: Special education funding – but also adult education programs are part of this budget area.
PRIORITY: VERY HIGH

***FEBRUARY 1, 2011 - TUESDAY

***ASSEMBLY BUDGET SUBCOMMITTEE #1 ON HEALTH AND HUMAN SERVICES
1:00 PM – State Capitol – Room 4202
Budget Items To Be Heard:

• ***Department of Health Care Services – Medi-Cal  (Budget Item 4260)
• ***Managed Risk Medical Insurance Board – Healthy Families (Budget Item 4280)

CDCAN COMMENT: Governor is proposing over $1.7 billion in cuts to the Medi-Cal program and major cuts to the Healthy Families program.  Senate Budget Subcommittee #3 on Health and Human Services heard these budget proposals on January 26th – kept items “open” for later action.
CDCAN ACTION ALERT:  YES
PRIORITY: VERY HIGH

***FEBRUARY 1, 2011 - TUESDAY

***SENATE BUDGET SUBCOMMITTEE #3 ON HEALTH AND HUMAN SERVICES
1:00 PM – State Capitol – Room 4203
Budget Items To Be Heard:

• ***Department of Mental Health (Budget Item 4440)  – Proposition 63 Redirection; Community-based mental health services; state hospitals
• Department of Public Health (Budget Item 4265) – AIDS Drug Assistance Program, and other issues as needed
• Department of Health Care Services (Budget Item 4260) – Family Health

CDCAN COMMENT:  Budget subcommittee staff is estimating that the length of this hearing will be about 4 hours.  Governor is proposing to shift about $900,000 from the fund balance of Proposition 63, the voter approved Mental Health Services Act, to temporarily fund 3 existing community-based mental health services currently funded by State general funds:  EPSDT (Early, Periodic, Screening, Diagnosis and Treatment Program), Medi-Cal Managed Care Mental Health services and mental health services for special education students under the AB 3632 mandate.  The Assembly Budget Subcommittee is holding its hearing on this issue on January 26th.
PRIORITY: VERY HIGH

FEBRUARY 1, 2011 – TUESDAY

SENATE BUDGET SUBCOMMITTEE #1 ON EDUCATION
01:30 PM – State Capitol – Room 3191
Budget Items To Be Heard:

• California State Library (Budget Item 6120) – Governor’s reduction proposal
• Department of Education (Budget Item 6110) - Governor’s Education Proposals for 2011-2012 State Budget:  California Longitudinal Pupil Achievement Data  System (CALPADS) and California Longitudinal Teacher Integrated Data Education System (CALTIDES); Economic Impact Aid; Emergency Repair Program; Mandates
• Public Comment

PRIORITY: Important

File Attachments: 

2011-01-31 - Proposed Cap on Physician and Clinic Visits.pdf

2011-01-31 - Proposed Cap on Selected Optional Benefits - Hearing Aids DurMedEquip MedSupp.pdf

2011-01-31 - Proposed Eliminate Adult Day Health Care.pdf

2011-01-31 - Proposed Hard Cap on Medi-Cal Services - Prescriptions.pdf

2011-01-31 - Proposed Medi-Cal Provider Rate Reduction.pdf

2011-01-31 - Proposed Regional Centers - Administrative Costs - 201103216.pdf

2011-01-31 - Proposed Regional Centers - Audits.pdf

2011-01-31 - Proposed Regional Centers - Conflict of Interest.pdf

2011-01-31 - Proposed SSI-SSP Individual Grant Reduction - 1101850.pdf