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MASSIVE SWEEPING CUTS PROPOSED FOR HEALTH AND HUMAN SERVICES

• OVER $1 BILLION IN CUTS PROPOSED TO MEDI-CAL
• PROPOSED ELIMINATION OF ADULT DAY HEALTH CARE
• REVIVES PROPOSAL TO CUT 87% OF IHSS CASELOAD
• PROPOSES REDUCING STATE MONEY FOR IHSS WORKERS
• BIG CUT TO SSI/SSP GRANTS FOR INDIVIDUALS PROPOSED
• 15.7% GRANT CUT PROPOSED FOR CALWORKS
• HUGE CUT PROPOSED TO MENTAL HEALTH ACT MONEY
• NO NEW RATE REDUCTIONS FOR REGIONAL CENTERS

PROPOSES ELIMINATION PROGRAMS AND MAJOR REDUCTIONS IF FEDERAL GOVERNMENT DOES NOT INCREASE FEDERAL FUNDING – GOVERNOR CALLS FOR CONTINUATION OF EXISTING REGIONAL CENTER BUDGET CUTS BUT NO NEW PROPOSED RATE REDUCTIONS BUT ON-GOING CUTS WILL CONTINUE & POSSIBLY EXPAND

SACRAMENTO, CALIF (CDCAN) [Updated 01/08/10 2:30 PM (Pacific Time)] - Governor Arnold Schwarzenegger proposed over $8 billion in new spending cuts to help bridge a projected $19.9 billion budget hole, including over $2.9 billion in sweeping new cuts proposed for health and human service programs impacting Medi-Cal, In-Home Supportive Services, Adult Day Health Care, mental health services and other programs.

Governor’s Proposed Cuts Sweeping and Dramatic

The proposal to dramatically narrow eligibility to the In-Home Supportive Services program – previously proposed last May – would mean that 87% of the estimated 485,000 children and adults with disabilities, mental health needs, the blind and seniors in the program would lose all services, leaving just about 63,000 people who would remain eligible.

Other proposals that call for elimination of Adult Day Health Care, would impact thousands of seniors, while the proposed new reduction of SSI/SSP grant levels for individuals would mean a reduction to the lowest amount allowed by the federal government for over 1 million low income persons with disabilities, the blind and seniors.

Governor’s Budget Proposal First Step In Long Process

The Governor’s proposed budget however is only the first step in a long process. All the proposed reductions will require approval from both houses of the Legislature – and in some cases, additional approval from the federal government or voters – and that process will include countless hearings, meetings and floor sessions over the coming months through June and even July.

Schwarzenegger Administration Budget Assumes It Will Prevail In Court Appeals

Many of the proposals were ideas that the Governor previously proposed last year including those that the Legislature approved but were subsequently blocked by rulings and orders by federal or state courts.

Schwarzenegger Administration officials however said that the proposals were included again – including those currently blocked by the courts – because the State believes it will eventually prevail on appeal as cases move forward.

Governor Wants Additional Federal Funds California Is Owed

The Governor is seeking over $6.9 billion in additional federal funding – including a proposal to the federal government that would increase the State’s federal Medicaid match from 50% to 57% - as a means to help close the spending gap.

Governor said federal funding must be a part of the budget solution because it is part of the budget problem because the State, he believes, is not receiving its fair share of federal dollars that other states receive.

The Governor, in his final year in office, presented his proposed budget, which contains no new tax increases, in a press conference in Sacramento this morning, followed by a question and answer session by his new Department of Finance director, Ana Matosantos, though did propose extending or delaying certain revenues (see below).

Governor Issues Proclamation Declaring “Fiscal Emergency”

The Governor also issued a proclamation declaring a “fiscal emergency”, putting in motion a State constitutional requirement that puts a 45 day time limit for the Legislature to act in special session.

The budget shortfall, barring any action from the Legislature or Governor is projected to grow to over $19.9 billion by June 30, 2011 – the end of the 2010-2011 State Budget year that begins July 1. State budget officials have estimated that about $7 billion of that is the shortfall that the current year State budget will end up by June 30, 2010 unless action is taken by the Legislature and Governor to address it. In addition, the State will face a cash shortage to pay its bills by March unless the Legislature and Governor take action before then.

The “fiscal emergency” provision in the State constitution [State Constitution Section 10(f) of Article IV] has limited impact on what it can force the Legislature to do:

• The “fiscal emergency” provisions in the State constitution was passed as an amendment to the constitution by voters in March 2005 as Proposition 58, and was part of an overall budget reform deal with the Governor and Legislative Democrats and Republicans.
• While the Governor under the “fiscal emergency” declaration, can force the Legislature to come back into a special session and pass a bill or bills dealing with that emergency within 45 days, the Governor cannot force the Legislature to consider or approve any specific proposal that he makes. The Legislature simply needs to indicate in the bill or bills it sends to the Governor that it is responding to the fiscal emergency.
• If the Legislature fails to send a bill or bills to the Governor within that time period, the Legislature cannot take up any other business or adjourn until it does so – though in previous years when the Proposition 58 provision was triggered by the Governor, the Legislature found ways to still holding regular hearings on regular session bills and conduct other business.
• The constitutional provision does not require what the Legislature must pass and send to the Governor or require the Legislature to make cuts or to approve reductions or proposals by the Governor.

Democratic Legislative Leaders Say Governor’s Spending Cut Proposals “Recycled”

Following the Governor’s presentation of his proposed budget this morning, Democratic legislative leaders in a press conference, were strongly critical of the $8 billion of proposed spending cuts – especially those in the health and human services area.

Karen Bass: Bass represents Culver City, West Los Angeles, Westwood, Cheviot Hills, Leimert Park, Baldwin Hills, Windsor Hills, Ladera Heights, the Crenshaw District, Little Ethiopia and portions of Korea Town and South Los Angeles.Assembly Speaker Karen Bass (Democrat – Los Angeles) while saying she was willing to work with the Governor, called many of his proposals unworkable and many that she described as a “pile of denial”. Darrell Steinberg: Steinberg represents the greater Sacramento region, including the cities of Sacramento, North Highlands, Citrus Heights and portions of Elk Grove, Rio Linda, Carmichael and Rancho Cordova.Senate President Pro Tem Darrell Steinberg (Democrat – Sacramento), while also saying Democrats would work with the Governor as much as possible, pointed out many of his proposals were “recycled” ideas rejected by voters and that “…the issue is fairness”.

Noreen Evans: Evans serves people in Napa, Solano, and Sonoma counties in the State Assembly.Assembly Budget Committee Chair Noreen Evans (Democrat – Santa Rosa) said that her committee would soon be holding hearings to review the impact of the cuts to In-Home Supportive Services that went into effect November 1, 2009 and possibly other reductions.

Governor’s Cuts Focused on Five Areas of Health and Human Services

The reductions proposed to health and human services are enormous – and largely are those previously proposed in May and February last year and in nearly every instance, rejected by the Legislature. Five programs within health and human services are taking the brunt of the new cuts proposed at this point in time in the budget process:

• In-Home Supportive Services – new reductions proposed of over $1.2 billion in state general funds (total does not include reductions if entire program is eliminated)
• Medi-Cal, with new reductions proposed amounting to over $1 billion in the state general funds including proposed elimination of Adult Day Health Care under Medi-Cal.
• Proposition 10 (Children and Families Act of 1998) – Governor proposed reduction of $550 million in state general funds by cutting funding raised by Proposition 10 from the California Children and Families Commission budget to other state general funded children’s programs. This proposal – which requires voter approval, would propose (for 5 years) cutting that funding – about 50% of the total Proposition 10 funding – to support children in programs under the Department of Developmental Services and the Department of Social Services. Legislature would have to approve this proposal – and then have it placed on the June 2010 State primary ballot for voter approval for it to take effect.
• Mental Health Services – Governor proposes a reduction of $452.3 million in state general funds for mental health community services and proposes it be replaced with funding from the Mental Health Services Act (Proposition 63) to help fund a portion of the EPSDT (Early Periodic Screening, Diagnosis and Treatment) program and a portion of the Mental Health Managed Care program. The proposal would require approval by voters in the June 2010 State primary – assuming the Legislature approves the proposal for placement on that ballot.
• SSI/SSP (Supplemental Security Income/State Supplemental Payment grant program) including CAPI (Cash Assistance Program for Immigrants) with new reductions totaling over $300 million in state general funds. SSI/SSP grants were hit with cuts four times last year with 2 different permanent reductions in grant levels, suspension and then elimination of the State cost of living adjustments and withholding of the 2009 federal cost of living.

In three of the five cases, the reductions as proposed by the Governor, and if approved by the Legislature, would take effect in terms of the actual reductions, beginning June 1, 2010 (assuming enactment of a bill authorizing those reductions on or before March 1, 2010). The remaining two proposed cuts impacting Proposition 63 and Proposition 10, would require first the Legislature to approve placement on the ballot for the June 2010 State Primary election and then for voters to approve it, for those cuts to take effect by July 1, 2010.

Other areas of health and human services that did not receive new major spending cut proposals at this point in time – such as regional centers that coordinate community based services funding (under contracts with the Department of Developmental Services) and the four state owned and operated developmental centers (and 2 smaller facilities) – were hit previously with budget reductions that totaled well over $500 million (including lost federal funds) in the revised 2009-2010 State Budget passed last July. Those reductions were meant to continue into the 2010-2011 State Budget year and in some cases, the reductions were projected to expand (or savings to the State increased).

Not included in that list however are several programs that the Governor proposes for outright elimination or proposes major reductions if the federal government fails to provide $6.9 billion of additional federal funding that the Governor believes is owed to the State.

Cuts Proposed Is Only First Step In A Long Process

The cuts proposed by the Governor this morning is only the first step in a long and difficult budget process, with many of his proposals calling for outright program elimination or sweeping reductions in services and eligibility not likely to be approved by the Legislature – or if approved by the Legislature, face an uncertain prospect from voters in June. Rejection of the Governor’s proposals – either by the Legislature or voters – or by the federal government in some instances – would mean the Governor or Legislature would need to come up with other proposals to close the budget gap.

That means some budget areas not hit as hard at this point in the budget process could see big proposed reductions later – in May when the Governor proposes revisions to his proposed budget – or after the June 2010 State Primary election, when possibly voters could decide the fate of some proposed budget changes if the Legislature approves placing those measures on the ballot.

GOVERNOR PROPOSES EXTENDING OR DELAYING CERTAIN PROPOSALS TO RAISE REVENUE

The Governor proposed, for one year to extend or delay certain proposals that would raise revenues – but said he was opposed to raising new taxes:

• Business Related Tax – proposes to extend suspension of a business’ ability to reduce it taxable income by applying net operating losses from prior years to reduce current income (would raise projected $1.2 billion state general funds)
• Personal Income Tax Credit – proposes to extend reduction in credit for each dependent on the personal income tax from $319 to $102 (would raise projected $504 million state general funds)
• Business Tax Credits – proposes to delay use of business credits by unitary groups of corporations and instead retain current state law which requires subsidiaries to have their own tax liability to use research and development and other credits (would raise projected $315 million in state general funds)
• Single Sales Allocation –proposes to delay the change to the single sales factor allocation method for multi-state corporate income and instead keep the double weighted sales, property and payroll formula (would raise projected $300 million in state general funds)
• Corporate Taxes – proposes to lower to 30% the first year phase-in of the ability of corporations to carry back losses two years to off-set prior tax profits (would raise projected $20 million in state general funds).

ADDITIONAL “CONTINGENCY” PROPOSED PROGRAM ELIMINATION TIED TO FEDERAL FUNDS TRIGGER

The Governor’s proposed budget includes what he called a “contingency” in the event that the federal government does not approve the additional federal funding that the State believes it is owed.

The Governor is proposing that the federal government permanently increase the State’s federal Medicaid matching funds from 50% to 57%. The budget plan also assumes extension of the federal American Recovery and Reinvestment Act (ARRA) funding, due to expire December 31, 2010, for another 6 months beyond that to the end of the 2010-2011 State Budget year that ends June 30, 2011 and also seeks increased federal money in other areas.

The Governor proposed that if the federal government fails to provide the $6.9 billion of additional federal money – including extension of the American Recovery and Reinvestment Act funding, additional funding for special education, the increase in the federal Medicaid match, that the Governor believes is owed to the State, the following programs are proposed for total elimination or major reductions (all require approval by the Legislature and in some instances might require voter approval – in the case of Proposition 63 funding).

The Governor proposed that the Governor’s Department of Finance Director would have to certify by July 15, 2010 that the state was in receipt of the required amount of additional federal funds or else the trigger would be pulled.

The Governor said that none of these proposed program eliminations or reductions listed here would require approval from the federal government to implement:

• CalWORKS – eliminate entire program ($1.044 billion in state general funds)
• In-Home Supportive Services (IHSS) – eliminate entire program ($495 million in state general funds) and redirect additional county IHSS savings ($325 million in state general funds)
• Medi-Cal – reduce eligibility to the federal minimum allowed, reduce or eliminate several Medi-Cal services and eliminate most remaining Medi-Cal optional benefits ($532 million in state general funds)
• Mental Health – fund existing mental health services with Proposition 63 – Mental Health Services Act – funding instead ($847 million in state general funds)
• Healthy Families Program – eliminate entire program ($126 million in state general funds)
• Foster Youth - Transitional Housing Placement for Foster Youth Plus Program ($36 million in state general funds)
• Health Services – eliminate various health services under Proposition 99 ($115 million in state general funds)
• Higher Education – eliminate funding for enrollment growth at University of California and California State University ($111.9 million in state general funds)
• Corrections – Eliminate non-court required inmate rehabilitation programs, implement baked parole for low risk and serious offenders, expand crimes where convicted felons serve time in local jails and increase number of parolees per agent who supervises them ($280 million in state general funds)
• State Employees – reduce state employee pay by an additional 5% ($508 million in state general funds)
• Courts – make unallocated reduction to trial courts ($100 million in state general funds)

CDCAN SUMMARY OF MAJOR PROPOSALS IN HEALTH & HUMAN SERVICES

MEDI-CAL PROPOSALS & PROPOSED CUTS

The Governor’s budget includes proposals that deal with adjustments or changes in state policy:

• Nursing Facility Quality Assurance Fees – This “Quality Assurance Fee” which is used to provide a higher reimbursement rate for skilled nursing facilities in exchange for paying a special fee, was authorized by state law that is scheduled to sunset July 31, 2011, which the Governor’s proposed budget is seeking to reauthorize.
• Medi-Cal Managed Care Expansion – an increase of $54.9 million for managed care expansion into Kings, Lake, Madera, Mendocino and Ventura counties. The Governor’s budget says that Madera and Kings Counties will be partnering with Fresno County that already has an existing Medi-Cal managed care system.

Governor proposed – subject to approval from the Legislature and in some cases, also approval from the federal government over $1 billion in cuts to the Medi-Cal program:

• Proposed Reduction of $750 million resulting from implementation of several proposed “cost containment” measures including a combination that include limits on services provided and the use of services (utilization); increases to share of costs through increases existing or imposing new co-payments and other program changes.
• Eliminate Adult Day Health Care – proposes to eliminate – for a reduction of $104 million state general funds – the adult day health care Medi-Cal optional benefit, proposed to take effect March 1, 2010 – with an effective dates (for the actual cut to take place) – June 1, 2010.
• Eliminate Full Scope Medi-Cal for Certain Immigrants – reduction proposed of $118 million state general funds, resulting from proposed elimination of full scope Medi-Cal benefits for adult Newly Qualified Immigrants – who are legal immigrants who have been residing in the US less than five years. Exception would be made for pregnant women, and those immigrants who qualify under the Permanently Residing Under the Color of Law, and Amnesty Immigrants who are not defined as eligible under Newly Qualified Immigrants under federal law. Governor proposes that this proposal take effect March 1, 2010, with actual effective date for those in these programs occurring June 1, 2010.
• Reduction proposed of $55 million by deferring (delaying) one weekly Medi-Cal payments to Medi-Cal institutional providers
• Reduction proposed of $26.4 million resulting from increase in anti-fraud in what the Governor says is high priority areas including pharmacy, doctor services, transportation and medical equipment.
• Reduction in rate increases for Family Planning Services of $28.7 million by rescinding the previous rate increase of 2007. Governor proposes that proposal take effect March 1, 2010, but would effective for Family Planning Services providers June 1, 2010.

IHSS PROPOSED CUTS

When proposing the additional new cuts, the Governor’s proposed state budget assumes that it will prevail in the 2010-2011 State Budget year in the pending lawsuits blocking the cuts to IHSS that were part of the 2009-2010 State Budget passed in February 2009 and revised last July, and also assumes that the federal government will approve the State’s request to permanently increase its Medicaid match from 50% to 57%:

• Narrowing of IHSS Eligibility and Services - The Governor, essentially is reviving proposals he made last May that were rejected by the Legislature, would dramatically limit services under IHSS to only persons with a “functional index score” – an internal assessment tool used by county social services workers – of “4” or higher. Any person with a functional index score of 3.99 or less, would lose all services under IHSS. The Governor’s proposal would require approval from the Legislature. The Governor’s budget estimates that it would mean a reduction to the IHSS program of $59.8 million in state general funds in the remaining months of the 2009-2010 State budget year that ends June 30, 2010 (assuming it goes into effect June 1) and another $883 million state general funds for the 2010-2011 State budget year. This reduction, if approved by the Legislature, would mean 87% of the 485,000 children and adults would lose all services under IHSS, leaving the program with just about 63,000 people.
• Reducing State Participation for IHSS Worker Wages - Governor also reviving his last year’s proposal that would reduce the State’s participation toward IHSS worker wages to the State minimum wage (currently $8 per hour) and 60 cents per hour for health benefits. This proposal would require approval from the Legislature. The Governor’s proposal to reduce the State’s participation toward IHSS worker wages to the State minimum wage was also previously proposed last year – and adopted as part of the revisions to the 2008-2009 and the early 2009-2010 State Budget last February. That proposal however was blocked from implementation by a federal court order in June. It is not certain how the current federal lawsuit blocking the last year’s reduction of the State participation toward IHSS workers will impact this latest nearly identical proposal. The Governor’s budget says this proposal, if approved, would mean a $21.7 million cut to the IHSS program in 2009-2010 (assuming a June 1, 2010 implementation date), and another $272 million cut in state general funds for the entire 2010-2011 State budget year that begins July 1, 2010 and ends June 30, 2011.
• Total Reduction to IHSS - The two major proposals, if approved as proposed by the Governor, would mean a reduction to IHSS of about $81 million in the current 2009-2010 State Budget year that ends June 30, 2010 and another over $1.1 billion for the entire 2010-2011 State Budget year that begins July 1, 2010.
• Effective Dates - The Governor is seeking to get that approval from the Legislature for an enactment date of March 1, with an effective date for IHSS recipients and workers for these changes on June 1, 2010 (allowing for the time required for required notification).
• The Governor’s proposal also would make adjustment in funding for county administration for IHSS assuming his proposing to substantially reduce the caseload are approved, Those reductions in funding for county administration would take effect July 1, 2010.
• Program Elimination – Governor proposes total elimination – which would require approval of the Legislature - of the entire IHSS program if the federal government does not approve extension to June 31, 2011, the American Recovery and Reinvestment Act (ARRA) funding, set to expire December 31, 2010.

SSI/SSP

• SSI/SSP Grants for Individuals - The Governor is proposing reducing SSI/SSP grants for individuals to the minimum level allowed by the federal government, which if approved by the Legislature, would reduce the $845 maximum current grant level for individuals by $15 per month to $830 per month (the Governor proposed last year – and the Legislature approved – reducing grant levels for couples to the lowest level allowed by the federal government. That cut went into effect October 1, 2009). The Governor proposes that this proposal become effective June 1, 2010, with passage and enactment by the Legislature and Governor by March 1, 2010. Note: federal law requires that states who supplement the federal SSI grant payment must maintain their SSP payment at least at the level it was in 1983 – which is the federal “maintenance of effort” or MOE.
• CAPI – Governor proposed, as he did last year, the elimination of the Cash Assistance Program for Immigrants (CAPI). The Cash Assistance Program for Immigrants provides SSI/SSP level cash grants to persons with disabilities, the blind and seniors who are legal immigrants but who do not qualify for SSI/SSP grants.
• The total cuts to both SSI/SSP and CAPI amount to $21.8 million in state general funds in the current 2009-2010 State budget year that ends June 30, 2010 and another $285.1 million in state general funds for the entire 2010-2011 State Budget year that begins July 1, 2010.
• Cost of Living Increases - Last year automatic State cost of living adjustments were permanently eliminated. The Governor is not proposing withholding federal cost of living adjustments next year – if there are such adjustments.

HEALTHY FAMILIES PROPOSED CUTS

This program, matched with federal State Children’s Health Insurance Program funding (SCHIP) that provides health care coverage for low income children who do not qualify for Medi-Cal. Many of the children have special needs or disabilities – or come from families who may have parents who are workers providing supports and services to people with disabilities, mental health needs and seniors.

• Narrow eligibility – reduction proposed of $10.5 million in state general funds for current budget year (2009-2010) and another $63.9 million for the 2010-2011 State Budget year by narrowing eligibility from 250% of the federal poverty level to 200%., to take effect, if approved by the Legislature, May 1, 2010 (and after required provider and recipient notification is made).
• Proposed reduction of $21.7 million in state general fund by eliminating vision coverage and increasing monthly premiums in families with incomes from 151% to 200% of the federal poverty level, by $14 per child or a maximum of $42 increase per family with 3 or more children (on top of the current existing $16 per child or $48 maximum per family premiums) and would take effect, if approved by the Legislature on July 1, 2010.

REGIONAL CENTERS & DEVELOPMENTAL CENTERS

• Rate Reductions - In the developmental services budget – the budget that largely funds the community based services funded through the 21 non-profit regional centers, the Governor proposed – for now - no major new reductions and no new rate reductions to programs. The Governor proposed continuing a 3% rate reduction to most providers and 3% reduction to regional center operations that is due to expire June 30, 2010, into the 2010-2011 State Budget year and total $60.9 million in reductions in state general fund spending during that budget year.
• Continuation of Existing Reductions – Governor’s proposed budget assumes $61.1 million in state general fund additional savings connected with the ongoing $334 million cuts that were approved as part of the revised 2009-2010 State Budget last July. The additional savings comes from newer estimates of what those reductions would reduce spending for an entire State budget year and looking also at actual recent costs.
• New Program Reductions - Governor also proposed an additional $25 million reduction in general fund money to be determined later by the Department of Developmental Services.
• New Medicaid State Plan Amendment – Governor’s proposed budget assumes $52.5 million in new federal funds (meaning a resulting cut of that amount in state general funds) for a full year implementation of an amendment to the existing State Medicaid Plan – called a 1915(i) Amendment. The proposed amendment, submitted in December to the federal government for approval, would allow federal Medicaid funding for certain persons with developmental disabilities receiving certain adult residential services, who are eligible for Medi-Cal but are not on the existing Medicaid Home and Community-Based Services waiver because they do not meet the institutional level of care requirement.
• The Governor’s proposed budget also funds increased caseload and utilization (cost of providing services) based on a projected caseload increase of an estimated 7,480 people (or a projected increase of 3.1% instead of about 5%)
• Developmental Centers and two smaller state owned and operated facilities – Governor’s budget shows a decrease in spending resulting from the mandatory state furloughs for 2009-2010 and an increase resulting from the end of the furloughs effective July 1, 2010. Governor’s proposed budget reports that Sierra Vista facility near Yuba City is ready for closure as scheduled for February 2010, with everyone moved out. The Governor’s proposed budget reports also the transfer of 30 persons from one section to another part of the Porterville Developmental Center (near Bakersfield) that would make the State eligible to receive federal matching funds for their services in that center is nearly complete. The Governor’s proposed budget assumes a drop in the current level population of developmental centers of 69 persons for the remaining months of the 2009-2010 State Budget year and another 143 in 2010-2011 for a total of 212, reducing the population in state owned and operated facilities by June 30,2011 to an estimated 1,947.
• The level of reductions to the developmental services budget (primarily regional centers) is also tied to certain other major budget proposals including Proposition 10 (Children and Families Act of 1998).

MENTAL HEALTH

• Community Mental Health Services – Governor proposes a reduction of $452.3 million in state general funds and proposes it be replaced with funding from the Mental Health Services Act (Proposition 63) to help fund a portion of the EPSDT (Early Periodic Screening, Diagnosis and Treatment) program and a portion of the Mental Health Managed Care program. This proposal – similar to what the Governor proposed last year – would require voter approval in the June 2010 State primary election – because it would amend Proposition 63 by allowing and changing the requirements that prohibit taking funding raised under the Mental Health Services Act for other services not specifically allowed for under the Act, and also a change in the requirements dealing with the maintenance of effort provisions.

CalWORKS

Note: many children and parents with special needs and disabilities receive services under the CalWORKS program which is the state’s “welfare to work” program.

• Grant Reduction – Governor proposed a 15.7% reduction to the monthly CalWORKS grants – on top of last year’s 4% cut to those grants.
• Care Providers – Governor proposed reductions at what the State would be required to pay for child care providers in this program
• Recent Noncitizen Entrants Program – Governor proposed elimination of this program within the CalWORKS program which provides CalWORKS benefits to legal immigrants who have been in the US for less than 5 years.
• Governor’s budget assumes a total reduction to the CalWORKS budget of $146.1 million in state general funds, assuming (if approved by the Legislature before March 1, 2010), an effective date for CalWORK recipients and providers of June 1, 2010 (to allow sufficient notification required by law).
• Program Elimination – Governor proposes total elimination of the entire CalWORKS program (for a reduction of $700 million in state general funds) tied to a trigger that would be pulled if the federal government does not extend to June 30, 2011, the American Recovery and Reinvestment Act (ARRA) funding for this program that is scheduled to expire December 31, 2010.

COMMUNITY CARE LICENSING

No additional new major reductions proposed at this time.