Budget Update May 24, 2011

Assembly Budget Subcommittee #1 on Health and Human Services voted today to reject the proposed reduction to Public Authority Administrative funding. They voted to keep funding for PAs at the level passed by the Legislature in March. This action would restore $2.2 million in state funding for the PAs.

Sub #1 also voted to adopt trailer bill language that would direct the Department of Social Services, in consultation with stakeholders, to develop a new rate-setting methodology for Public Authority Administrative costs, beginning in FY 12-13.

Sub #1 also voted to reject the portion of the proposed reduction to County Administrative funding that is a result of IHSS caseload changes. Along with this action, the committee voted to reject the continued appropriation of $10 million in state funding for county district attorney activities (for anti-fraud measures).

Assembly Budget Subcommittee #1 also voted to reject the Department’s proposal to expand the list of exclusionary crimes that would prohibit an individual from getting paid as an IHSS provider. The Department argues that this step is necessary to comply with Federal Standards. The committee voted to refer this issue to the policy process for further study and stakeholder involvement.

Next steps:

• These issues must now be voted on by the Senate Budget and Fiscal Review Subcommittee #3 on Health and Human Services, which is scheduled to meet tomorrow morning at 9:30 am.

 # # #

Related article:  UDW expresses concerns about proposed cuts to IHSS Public Authorities