CDCAN REPORT #080-2010: Governor Withdraws Earlier IHSS Proposed Cuts – But Proposes $750 Million Reduction to IHSS With Stakeholder Group With Details to Be Submitted to Legislature By July 1st -

GOVERNOR RESCINDS IHSS CUTS PROPOSED IN JANUARY – BUT REPLACES CUT WITH $750 MILLION REDUCTION WITH DETAILS TO BE REVIEWED WITH STAKEHOLDER GROUP & PRESENTED TO LEGISLATURE BY JULY 1^ST – PROPOSES ELIMINATION OF CALWORKS PROGRAM

Creation of Stakeholder Group Similar to Process Used by Department of Developmental Services – Proposed Cut to SSI/SSP Individual Grants and Proposed Elimination of the Cash Assistance Program for Immigrants (CAPI) Remain

SACRAMENTO, CALIF (CDCAN) [Updated 05/14/2010  01:08 PM  (Pacific Time)] –  Governor Arnold Schwarzenegger proposed this afternoon as part of his overall package of budget revisions a proposal that rescinds his previously proposed cuts to  the  In-Home Supportive Services (IHSS) program that serves over 460,000 children and adults with disabilities – including developmental, the blind and low income seniors and instead replaces it with a proposal for a $750 million reduction to the program, with details to be developed using a stakeholder group and presented to the Legislature by July 1^st.   The stakeholder group – which would be limited in members – would be led by officials from the Schwarzenegger Administration directly with the Department of Social Services – the state agency that oversees the IHSS program statewide – providing technical assistance.  The Administration would make the final decision on what would be proposed to the Legislature July 1^st. 

The budget revision includes almost $1 billion in fund shifting to the Department of Social Services from other funds or assumption of elimination of certain programs, including county administered mental health community-based services.  See later CDCAN Reports for more details. 

The Governor is proposing however the total elimination of the CalWORKS program – the state’s welfare to work program that includes many children and parents with special needs and disabilities. 

The IHSS targeted reduction would actually be $637 million during the 2010-2011 State Budget year – the lower amount due to the temporary increase in federal matching funds due to the American Recovery and Reinvestment Act (ARRA).  The reduction or savings target would increase in subsequent state budget years to $750 million when that ARRA temporary funding increase ends.

The proposal still would be a major reduction to the IHSS program and is likely to meet stiff opposition in the Legislature – though the inclusion of a stakeholder process and withdrawal of the Governor’s previous proposed IHSS reductions are likely to be welcomed – at least initially – by many advocates. 

What the Governor also previously proposed in January that he has now withdrawn:

• Eliminate nearly 90% of the people receiving IHSS by restricting eligibility for any services to only individuals with a “functional index score” of 4.0 or more. Anyone with a score less than 4.0 would not be eligible for any services under IHSS.  The “functional index score” is an internal assessment tool used by county social workers. The Governor proposed a similar proposal last year, which the Legislature approved in July – but was subsequently blocked by a federal court.  The State is appealing the ruling.  Neither the Assembly or Senate budget subcommittees have taken final action on this proposal.   Governor has WITHDRAWN this proposal/
• Reduce State participation of funds toward IHSS worker (provider) wages to the state minimum age of $8 per hour plus 60 cents for benefit. The Governor proposed and the Legislature approved in February 2009, a reduction of State participation toward IHSS worker wages to a maximum of $9.50 to go into effect July 1, 2009.  That budget provision however was blocked by another lawsuit filed in federal court last June.  The State is appealing that ruling and the case is pending – but the Governor’s proposed budget assumes the State will eventually win the case.  Neither the Assembly or Senate budget subcommittees have taken final action on this proposal.  Governor has WITHDRAWN this proposal.

SSI/SSP AND CAPI

• The proposed reduction to individual SSI/SSP grants (Supplemental Security Income/State Supplemental Payment) for people with disabilities, the blind and low income seniors that the Governor made in January remains, though it now assumes the date of reduction will go into effect July 1, 2010. 
• That proposal calls for reducing individual grants to the lowest level allowed by the federal government by reducing SSI/SSP grants for approximately one million individuals by $15 per month (from $845 to $830).
• The Governor’s proposal originally wanted the Legislature to approve this reduction as part of the budget special session and to go into effect by June 2010.  The Legislative budget subcommittees however, while hearing the proposal and taking public testimony, kept the issue “open” until after the release of the Governor’s budget revisions today. 
• The SSI/SSP grant levels for couples were previously reduced to the lowest level allowed by the federal government as part of the revised 2009-2010 State Budget passed last July. 
• The Governor, also in January, proposed the total elimination of the state funded Cash Assistance Program for Immigrants (CAPI) that provides grants similar to the SSI/SSP grants to over 10,000 legal immigrants who are disabled, blind or seniors, who do not qualify for the federal SSI program.  That proposal remains in the Governor’s proposed budget.  Also remaining in the Governor’s proposed budget is the proposed elimination of the California Food Assistance Program (CFAP). 

NEXT STEPS

After the release of the Governor’s budget revisions, the budget proposal goes back to the Legislature to consider and act on – either to approve his proposals (including changing them) or to reject them. 

Budget Subcommittee Hearings

• Both the Assembly and Senate will hold – though on a fast track – another round of budget subcommittee hearings, hearing and taking public testimony usually on new proposals contained in the Governor’s budget revisions issued in May. 
• These hearings – the actual detailed schedule is not yet available – are usually held in the final two weeks of May.   [CDCAN will issue a report on the hearing schedule as soon as information becomes available and will also issue an Action Alert]
• The budget subcommittees will then take their final actions on the various proposals by the Governor that he proposed in May – and any proposal by the Governor he made in January that they did not yet take action on. 
• The Assembly and Senate budget subcommittees will frequently take different actions on several of the Governor’s proposals – and when that happens, those different actions are sent to a special joint committee – called a budget conference committee.

Budget Conference Committee

• Budget conference committee is composed of 3 Assemblymembers – 2 Democrats and 1 Republican and 3 State Senators – 2 Democrats and 1 Republican. 
• During early to mid June the Budget Conference Committee will hold public hearings  at the State Capitol in Room 4203 (televised) to resolve any different actions taken on various budget issues by the two houses.  While these hearings are public, no public testimony is taken.  People however can write letters and make phone calls to conference committee members and other legislators. 
• By mid to late June the Budget Conference Committee usually completes its work and sends the Governor’s proposed budget – as revised by the subcommittees and budget conference committee – to the full Assembly and State Senate for a vote.
• However, because the State Constitution requires 2/3rds vote to approve a State Budget in both houses (54 votes in the Assembly and 27 votes in the State Senate) and with Democrats needing at least some Republican votes in both houses to pass a budget – a stand-off nearly always occurs at this stage in the process. 
• It is at that point in late June or July that usually the four legislative leaders (Senate President Pro Tem, Senate Republican Leader, the Assembly Speaker and the Assembly Republican Leader) and Governor begin to hold meetings to try to come up with agreement that will result in getting the necessary Democratic and Republican votes needed to pass a state budget in both the Assembly and State Senate.  
• Assembly Speaker John Perez (Democrat – Los Angeles) however said earlier this week that those “Big Five” (the four legislative leaders and the Governor) meetings will be much different than in previous years and promised there would be no closed door deals and that the membership of both the Assembly and Senate would have the opportunity to fully review and consider any new proposal that comes up.