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Governor Arnold Schwarzenegger has proposed as part of his overall package of budget revisions a cut of up to $750 million in the IHSS program. This would represent more than 50 percent of the current program budget.
In his original state budget proposal in January, Schwarzenegger had asked for the elimination of IHSS unless the state received approximately $6.9 billion from the Federal government. Because this did not happen, some had predicted that he would ask for complete elimination of the program in the May Revise.
Nevertheless, UDW Executive Director Doug Moore vowed that UDW and its allies will fight the proposed cut in the state legislature. He called upon UDW members to urge their legislators to oppose the IHSS cuts.
“The governor would rather deprive an elderly Alzheimer’s patient of needed home care than tax oil production like every other oil producing state does,” Moore said “He’d rather close schools than tax loopholes. This budget is fiscally irresponsible and morally reprehensible. Cuts alone will not solve our budget problems.”
The consequences of the latest budget proposal will be immediate, long-lasting, and devastating. Cutting the IHSS program will endanger hundreds of thousands of seniors and people with disabilities, who will lose the lifeline care that allows them to live safely at home. In addition, the cuts may mean that hundreds of thousands of California caregivers will be thrown out of work, significantly increasing our state’s unemployment rate.
In addition to the effect on IHSS consumers and providers, independent economists have shown that cutting IHSS will cost California taxpayers dearly – a recent study by economist Dr. Candace Howes estimated that significantly cutting home care will result in more than a billion dollars in additional long-term care costs to be borne by California taxpayers. Furthermore, it will result in the loss of billions in federal funds–the Federal government contributes nearly $3 for every dollar spent by the state on IHSS.
The governor’s proposal stated that the details of the cut would be developed using a stakeholder group and presented to the Legislature by July 1st. The yet-to-be-named stakeholder group would be led by officials from the Schwarzenegger Administration. with the Department of Social Services – the state agency that oversees the IHSS program statewide – providing technical assistance.
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.
