Enacted in July of this year, the state budget included an assumption that the state would receive $4 billion in additional tax revenue during the fiscal year (July 1, 2011 to June 30, 2012). This estimate was based on what appeared to be a growing trend of increased tax collections. The budget, however, also included provisions that should revenue not materialize at the anticipated levels it would “trigger” additional spending cuts to account for that lost revenue. The budget instructed the Department of Finance to determine by December 15, 2011 if these trigger cuts would take place.  

Unfortunately, the additional tax revenue did not materialize at the expected levels. This problem was first addressed by the Legislative Analyst’s Office in a report released in mid-November (click here to read LAO report), and was confirmed today by Governor Brown during a press conference. According to the Department of Finance, the state’s updated revenue estimate for the current fiscal year will be $2.2 billion below the revenue anticipated in the July budget. Even though this estimate is higher than what was predicted by the LAO in November, it still results in the implementation of the “trigger” cuts, which will total approximately $981 million dollars (click here the read the 2011-2012 revenue forecast).

This includes a reduction of $101.5 million in the IHSS program, which would take place through a 20% across the board cut in service hours and the elimination of funding for local anti-fraud efforts. UDW, in partnership with other IHSS advocates, anticipated that these trigger cuts would take place and requested on December 1, 2011 an emergency temporary restraining order (TRO) from the United States District Court. The TRO, which was granted by the Court, prevents the state from taking any actions to implement the 20 percent across-the-board cut (originally scheduled to take effect on January 1, 2012).  The TRO will remain in effect until there is a hearing in which the Court will decide whether to grant a preliminary injunction. The original hearing date of December 15, 2011 has since been cancelled, and no new date has been set. A tentative hearing date of January 19, 2012 has been set.

“Our members and those for whom they care need to understand that this is only a first step,” said Doug Moore, UDW Executive Director. “We next must prove in Court that the 20 percent cut does violate Federal law and will cause enormous harm.  At the same time, we need to keep pressure on Gov. Brown and legislators to help find alternatives to this potentially catastrophic cut in IHSS.”

UDW urges our members, their clients and families to remember that it is only TEMPORARY solution. Our clients and our jobs are still at risk.

• Please continue to check this web site regularly for the latest news and updates about the 20 percent cut.
• Keep your clients informed about what is happening.
• Attend upcoming meetings and training sessions in your counties.