LEGISLATIVE BUDGET COMMITTEES POISED TO TAKE FINAL ACTION ON MOST OF GOVERNOR’S PROPOSAL BY END OF THIS WEEK; BUDGET CONFERENCE COMMITTEE NEXT WEEK

• No Public Testimony Will Be Taken Because Issues Previously Heard
• Budget Conference Committee Meets Likely Early Next Week
• Senate Budget & Fiscal Review Committee To Meet Wednesday (Feb 16) on Medi-Cal, Healthy Families – Thursday (Feb 17) on Human Services, Other Health Programs  – Friday (Feb 18) on Revenues, Redevelopment, Education, Realignment 
• Assembly Budget Committee Set To Meet Only On Friday (Feb 18⁾ On All “Open” Issues Including Medi-Cal, Regional Centers, Mental Health, IHSS, SSI/SSP, CalWORKS

CDCAN DISABILITY RIGHTS REPORT   #041-2011  – FEBRUARY 15, 2011  TUESDAY

SACRAMENTO, CALIF  (CDCAN) [Updated 02/15/2011 – 01:30 PM  (Pacific Time) –  The California legislative budget committees in both houses are poised to take final action on most of Governor Jerry Brown’s budget proposals by the end of this week, in an extraordinarily fast paced process to meet the Governor’s March deadline.  Both budget committees intend to “close out” (take final action) on most of the Governor’s proposals by Friday – and moving the process into the next phase sometime early next week. 

Unresolved budget issues between the Senate and Assembly (issues where the houses took different actions) will likely go to a special joint committee called a “Budget Conference Committee”, that will likely meet early next week, with the budget proposal and package of budget related bills (called budget trailer bills that make necessary changes in State law to implement cuts and other changes in the main budget bill) going to the Assembly and State Senate floor possibly the last week of February. 

No agendas are yet available (CDCAN will send out copies as soon as agendas are available – and also will report on what happened at the hearings)

Full Budget Committees Schedule Final Meetings on Budget This Week

• The full Senate Budget and Fiscal Review Committee, chaired by Sen. Mark Leno (Democrat – San Francisco, 3^rd State Senate District) has scheduled three hearings over three days beginning Wednesday (February 16^th at 1:00 PM) to close out (take final action) on most of the Governor’s proposals – including major spending cuts proposed to Medi-Cal, regional centers (developmental services), In-Home Supportive Services, CalWORKS and other programs. 
• The Assembly Budget Committee, chaired by Assemblymember Bob Blumenfield (Democrat – Van Nuys, 40^th Assembly District) however is planning only to meet once – on Friday (February 18^th) in a single mammoth hearing to take final action on all of the Governor’s proposals – including those impacting CalWORKS, health, Medi-Cal, regional centers (developmental services), In-Home Supportive Services and other programs.
• No further public testimony will be taken at any of the Senate or Assembly budget committee hearings because the issues have been previously heard with public comment taken. 

Legislature & Governor Seeking To Solve Immense Ongoing Budget Deficits

The Legislature and Governor are seeking to close a budget gap of over $25 billion projected through June 30, 2012 – with projected budget deficits of over $20 billion every year through at least 2016 unless permanent action is taken to cut spending, raise revenues or a combination of both

Governor Brown is calling for over $12.5 billion in cuts to State general fund spending (some of which would be accomplished by transferring funds and new federal money) – including permanent sweeping cuts to health and human services.

Resistance To Some Cuts Emerging – Including Developmental Services, CalWORKS and Other Programs

• Some signs of resistance in both the State Senate and Assembly is emerging on some of the Governor’s specific cuts – though not on the overall goal of reducing State general fund spending by at least $12.5 billion. 
• Earlier this week and today there are reports indicating that the size of the $750 million reduction in State general fund spending to regional centers and developmental services could be reduced to a smaller amount – though the exact size is not known.  Other reductions proposed by the Governor – such as the proposed limit for eligibility for families on the state’s “welfare to work” program – called CalWORKS – and elimination of Adult Day Health and Multipurpose Senior Services Program – appear to be headed for rejection.
• Still, any rejection of a cut or a reduction in the size of a cut at this point, is seen as a temporary reprieve until after the June special election – still to be scheduled that the Governor hopes will mean passage of at least two ballot initiatives – one calling for a five year extension of temporary tax increases otherwise scheduled to expire this year.
• The Governor is expected to submit a revised State budget after that special election based on the election results and also based on latest actual spending and revenue figures and projections.  In normal budget years the Governor would issue such revisions in early May – known as the “May Revise”. 
• Similar to what happened in 2009, when the Legislature passed and Governor Arnold Schwarzenegger approved, the 2009-2010 State Budget in February four months early.  A revision to that budget was submitted after the June 2009 election by the Governor – that resulted in billions of dollars more in spending cuts – many enacted in a revised 2009-2010 State budget in July 2009. 

FINAL BUDGET COMMITTEE HEARING SCHEDULED 

Full Senate Budget Committee Set To Meet 3 Times This Week

All hearings will be televised live and webcasted live on CalChannel). All hearing dates and times and agenda items are subject to change.

FEBRUARY 16, 2011 – WEDNESDAY

SENATE BUDGET & FISCAL REVIEW COMMITTEE

01:00 PM – State Capitol – Room 4203

Budget Items On Agenda:

• Medi-Cal and Healthy Families
• Resources
• Transportation
• General Government

Public Testimony Taken: No – all these issues were previously heard with public testimony taken

PRIORITY: EXTERMELY HIGH

FEBRUARY 17, 2011 – THURSDAY

SENATE BUDGET & FISCAL REVIEW COMMITTEE

09:00 AM – State Capitol – Room 4203

Budget Items On Agenda:

• Human Services (In-Home Supportive Services, SSI/SSP, Adult Protective Services, Child Welfare Services, etc)
• Other Health Programs (could include regional centers and other developmental services and other remaining “open” health budget items)
• Public Safety budget items
• Higher Education budget items (includes community colleges)

Public Testimony Taken: No – all these issues were previously heard with public testimony taken

PRIORITY: EXTERMELY HIGH

FEBRUARY 18, 2011 – FRIDAY

SENATE BUDGET & FISCAL REVIEW COMMITTEE

09:30 AM (or whenever the State Senate floor session, which convenes at 09:00 AM on Friday, adjourns – which is expected to be around 09:30 AM)

State Capitol – Room 4203

Budget Items On Agenda:

• Revenues
• Redevelopment budget items
• Realignment budget issues (includes certain mental health related community-based services)
• Education – K-12 budget items
• And other remaining “open” budget items

Public Testimony Taken: No – all these issues were previously heard with public testimony taken

PRIORITY: EXTERMELY HIGH

FEBRUARY 18, 2011 – FRIDAY

ASSEMBLBY BUDGET COMMITTEE

Meets Upon Adjournment of Assembly Floor session – which could be anywhere from 09:30 AM to about 10:00 AM

State Capitol – Room 4202

Budget Items On Agenda:

• ALL “open” budget items proposed by the Governor including health (Medi-Cal, Healthy Families, regional centers and other developmental services), human services (In-Home Supportive Services, CalWORKS, SSI/SSP, Child Welfare Services, etc), education, realignment, revenues, etc. 

Public Testimony Taken: No – all these issues were previously heard with public testimony taken

PRIORITY: EXTERMELY HIGH

NEXT STEPS

NO MAJOR ACTION YET FROM EITHER HOUSE:

• As of February 15^th, both the Assembly and Senate Budget Subcommittees completed their subcommittee budget hearings on all of the Governor’s major proposed reductions in hearings that began the week of January 24^th and ended last week on February 10^th, including taking in public comment.
• All of the Governor’s major proposals have been kept “open” for later action this week by the full budget committees in both houses.  Those actions where the Assembly and Senate disagree on will likely go to a Budget Conference Committee (composed of members from both houses) to resolve sometime during the week of February 21st.

WHEN WILL LEGISLATURE TAKE FINAL ACTION:

• As reported, the full budget committees in both houses have scheduled what will likely be final hearings this week (see above for details) to close out most  “open” budget items (meaning those budget items previously heard in subcommittee hearings but where no action was taken)
• This process by the full budget committees is scheduled to be completed by the end of this week – February 18^th in what is a unusually fast paced compressed process.
• Those items not closed (final action taken) or those items where the Senate and Assembly took different action will likely then go to a budget conference committee (which would be chaired by Assemblymember Blumenfield this year) – and then for a final vote by the entire Assembly and Senate.
• It is not certain yet when a final vote by both the full Assembly and State Senate will take place – though the Governor wants the Legislature to send him a budget bill and budget trailer bills by March. 

BUDGET PROCESS ON FAST TRACK

• As previously reported, the Governor and Legislature – at the Governor’s urging – have put his proposed 2011-2012 State Budget spending plan on a fast track, to take action on his major proposals before March 1^st. 
• The normal State budget process takes usually a half a year or longer  – with subcommittee hearings normally spread out from late February to May. 
• Governor has urged the Legislature to move quickly because a key part of his plan is to place on a special election ballot in June for voter approval his proposal to extend for five years temporary tax increases that are scheduled to expire this year. 
• The Governor also wants quick action on his spending reduction proposals in order for the State to be able to move to implement them by July 1^st – and in some cases, within a few months – in order to achieve the greatest savings in State general funding from the cuts. 

MORE BUDGET HEARINGS LIKELY IN MAY OR JUNE

• While last week was likely the final time for public comment at a budget subcommittee or full budget committee hearing (people can still contact their own legislators or write letters to members) before the Legislature takes final action on the Governor’s proposals , there will likely be additional budget hearings in May or early June. 
• Those hearings – which will likely take public comment – will likely hear  whatever details the Brown Administration submits to the Legislature on how it plans to achieve whatever reduction amount is targeted for regional centers and other developmental services. 
• Other issues – possibly In-Home Supportive Services – might come up for hearing at that time as further details on various proposals become available.