Budget Crisis Nearing End
STATE SENATE PASSES BUDGET 28-11
APPROVAL BY GOVERNOR EXPECTED ON SAT

SACRAMENTO   -  As expected, the State Senate approved this afternoon, on a bi-partisan vote of 28-11, the 2004-2005 state budget, following passage by the Assembly yesterday. The spending plan along with several other budget related bills now go to the Governor, who is expected to sign the main budget bill on Saturday, which will officially give California a budget, almost a month after the start of the fiscal year.   Four Republicans and 24 Democrats voted for the long delayed budget bill.

While there was little debate on the main budget bill, like in the Assembly, there was sometimes angry debate on some of the budget related bills, especially the legislation impacting the correctional (prison) guard contract, and to a lesser degree, the constitutional amendment for local government funding.  Major debate focused especially on the controversial changes to the correctional officer (prison guard) contract, with Senators Jackie Speier (D-Hillsborough, 8th District), Dede Alpert (D-San Diego, 39th District), Jack Scott (D-Altadena, 21st District) and Tom McClintock (R-Thousand Oaks, 19th District) among those who made remarks on the floor strongly opposing it.

The State Assembly passed the budget bill - along with the budget related bills, late yesterday, by a final bi-partisan vote of 69-11.  Five Assembly Democrats opposed the spending plan, primarily objecting to the level of borrowing contained in the budget to bridge the shortfall including Assemblymembers Joe Canciamilla (D-Pittsburg, 11th District), John Dutra (D-Fremont, 20th District), Hannah-Beth Jackson (D-Santa Barbara, 35th District),  In the Senate the only Democrat to oppose the budget bill was Sen. Debra Bowen (D-Marina Del Rey, 28th District)

A full report on the budget provisions impacting people with disabilities and seniors will be released immediately after the Governor approves the budget - as anticipated - on Saturday.

NEXT STEPS
* ASSEMBLY - Assembly has adjourned until Wednesday, August 4,  4:00 PM, taking off Monday and Tuesday to extend what is remaining of their summer recess (their original date of return was August 2).  The Assembly Appropriations Committee - which will hear numberous bills, including key bills impacting people with disabilities, is still scheduled to holding a hearing Wednesday morning.
* SENATE - adjourned until Wednesday, August 4, 1:30 PM, except for Senate Appropriations Committee, which will meet at 10:00 AM that morning in Room 3191 (instead of meeting August 2).    Like the Assembly, the Senate is taking off Monday and Tuesday to extend what remains of their summer recess.
* GOVERNOR - expected to sign the main budget bill on Saturday - and the other 20 or so related budget bills over the next several days after that. [note: the Governor can blue pencil specific line items in the main budget bill.  For the other 20 budget related (trailer) bills, he would have to either approve it, allow it to become law without his signature or veto the entire bill - something he is not likely to do, given that nearly all those bills are part of the over-all budget agreement reached with the Governor and legislative leaders earlier late Monday evening.

BUDGET RELATED BILLS
The main budget bill is contained in SB 1113, containing the specific line item amounts and any specific language - good for that budget year - that briefly explains how the funds are to be spent.  However  there are also about 20 other pieces of legislation that are linked to the main budget bill - referred to as "budget trailer bills" because they follow or trail the main budget bill.  These bills contain provisions or requirements or legislative intent  that generally go beyond the specific budget year, or require changes to existing law or even the State Constitution (see SCA 4 below).  The following are the "trailer bills" that have direct and immediate impact to people with disabilities and seniors.
SB 1103 - Health "Omnibus" Bill - contains additional provisions impacting health programs, including regional centers,  habilitation services (supported employment), adult day health centers, mental health, Medi-Cal, Federally Qualified Health Centers and Rural Health Centers,  California Children's Services.  None of the Medi-Cal "redesign" proposals, that the Schwarzenegger Administration is expected to announce next week, are part of the 2004-05 budget or any of the budget related bills.
SB 1104 - Social Services "Omnibus" Bill - includes additional provisions relating to In-Home Supportive Services, including provisions regarding the IHSS Quality Assurance Initiative and language setting guidelines for the IHSS Residual Program that will be matched with federal funding; also language regarding delay of cost of living adjustments for SSI/SSP recipients, and also provisions that increase licensing fees for community care facility providers.
SB 1108 - Education "Omnibus" Bill - includes additional provisions relating to special education (SB 1101 deals with suspension of Proposition 98, the constitutional amendment on education funding).
SCA 4 - local government constitutional initiative agreed to by Governor, legislative leaders and local government. Will limit ability of the Legislature and Governor to cut local government funding in future budget years (after 2005-2006 budget year).  Protection of local government funding has direct impact to local services for people with disabilities and seniors but also will - in future years, have impact on statewide funded  programs, including Medi-Cal, regional centers, SSI/SSO, should budget shortfalls - as predicted - continue.  A related bill - SB 1096 deals with provisions dealing with local government.

SUMMARY OF SOME OF MAJOR ISSUES IMPACTING PEOPLE WITH DISABILITIES/SENIORS
A full CDCAN Capitol News Report on the status of all budget items impacting children and adults with developmental and other disabilities, people with traumatic brain injuries, seniors, people with mental health needs will be issued when the Governor signs the budget on Saturday. However here is an update on some of the major issues in the budget that impact people with developmental and other disabilities, people with traumatic brain injuries and seniors:
Supplemental Security Income/State Supplemental Program (SSI/SSP)
* A delay of three months (from January 1 to April 1, 2005) of passing on the cost of living adjustments for SSI/SSP recipients,
representing a $35 million reduction  [specific provision in SB 1104]
Community-Based Services - In-Home Supportive Services for Children/Adults with Disabilities and Seniors
* No rollback of IHSS worker wages, no elimination of public authorities or advisory committees [main budget bill]
* Continuation of the Residual Program (as reported in April)  through matching federal funds (approval with federal government still pending) and legislative language that outlines program requirements and benefits be continued, even if not approved by the federal government  [specific provisions in SB 1104]
* IHSS "Quality Assurance Initiative" that some advocates believe will result in some reduction in hours and services - though the Administration believes this initiative will make the program more efficient, and cost effective.  [specific provisions in SB 1104]
Community-Based Services Funded Through Regional Centers
* No statewide limits or standards for regional center funded community-based services (also known as "purchase of service
standards")
* Parental/Family Share of Cost -  Implements new  "Family Cost Participation Program" effective January 1,  2005 - the concept which was approved last year by the Governor and Legislature.  Would require that  families with children aged 3
 through 17 years with developmental disabilities. who live in a family's home, receives services through a Regional Center and are not eligible for Medi-Cal,  with annual gross income at or above 400% of the federal poverty level  would share in the cost of services (respite, day care and camping)  provided to their children on a sliding scale. No other fees would be assessed for other services. Provides for an appeal process for families including fair hearings - however the Schwarzenegger Administration insisted that this specific provision will "sunset" or end (unless there is specific legislation to extend it) on July 1, 2006.  The other provisions however would remain in effect until July 1, 2009, unless there is new legislation to extend it.  [provisions in SB 1103]
* Unspecified or unallocated reduction of $7 million to the regional center budget that funds community-based services for people with  developmental disabilities (in addition to the continuation of cost containment measures that were put in place last year). Contains language which requires  the Department of Developmental Services to develop a process for applying the reduction to the 21 non-profit regional centers and to provide the Legislature with specific information regarding this, no later than December 1, 2004. [specific provision in SB 1103]
* Unspecified or unallocated reduction of $6.4 million to regional center operations budget, in addition to continuation of last year's operation budget reduction.  [provision in the main budget bill - SB 1113]
* Continuation of previous budget year (2003-2004) "cost containment" measures into the 2004-05 budget year , including rate freezes for Community Care Facilities, Adult Day Programs, Respite Services (in-home), vendor provided services conducted under contract with regional centers, and start-up of new services unless it is linked to placement of a person in the community or is necessary to protect a person (with developmental disabilities receiving services) health or safety.  Also continues for the 2004-2005 budget year the time regional centers are required to conduct intake and assessment of children and adults with developmental disabilities from 60 days to 120 days.  [specific provision in SB 1103]
Developmental Centers (People with developmental disabilities) and State Hospitals
* Legislative language that rejects the Governor's proposal to move temporarily 200 residents from Agnews Developmental Center to Sonoma Developmental Center, and requires community options in the transition residents at Agnews Developmental Center, that is  proposed for closure in 2006  [provision in the main budget bill - SB 1113]
Medi-Cal and Other Health Programs
* No major changes or reductions impacting people with disabilities and seniors  to Medi-Cal in this year's budget, though some changes are in SB 1103.
* Provides provisions to reflect elimination of the 5%  rate reduction that was in the 2003-04 budget,  for certain specific programs including California Children's Services, Genetically Handicapped Persons Program, Multipurpose Senior Services Program and the Breast Cancer Early Detection Program. [provision in SB 1103]
* Extends from 4/1/2005 to 9/1/2008, the date when the 250 Percent Working Disabled Medi-Cal Program was scheduled to "sunset" or end. [provisions in SB 1103].
* Makes changes to existing law impacting Federally Qualified Health Centers and Rural Health Centers [provisions in SB 1103]
* The Schwarzenegger Administration is expected to release next week - August 2, Monday  (though some rumors indicate the date will be delayed) the long awaited proposal to "redesign" the state's Medicaid program, which advocates say will have tremendous sweeping impact to people with disabilities and seniors.  No details available and it is not certain yet how the Schwarzenegger Administration will proceed with the proposal after it is released.  Many of the proposed changes to the program are meant to take effect for the next budget year that begins July 1, 2005.
Community-Based Services - Seniors (and others)
* Makes changes to existing law to implement a moratorium on the growth of new Adult Day Health Center sites effective as of October 1, 2004, unless meeting certain conditions as specified. Moratorium shall not apply to Programs of All-Inclusive Care for the Elderly (PACE), Federally Qualified Health Centers or Rural Health Centers or an applicant with the physical location of the center in an unserved area (as defined),  or an Adult Day Health center that is in an underserved area defined as a county having 2% or fewer Medi-Cal recipients over the age of 65 using Adult Health Center [specific provisions in SB 1103]
* Makes several changes to the California Partnership for Long-Term Care including eliminating the "sunset" date (date when program was set to end)  [provisions in SB 1103]
* Eliminates existing law (Section 14110.65 of the Welfare and Institutions Code) regarding supplemental wage adjustment for nursing homes, which if implemented, would have provided additional  funding to nursing homes that have a collective bargaining agreement or contract to increase salaries, wages, or benefits for certain staff. [provision in SB 1103]

VOTE RECORD REPORT ON MAIN BUDGET BILL (SB 1113)
FINAL SENATE FLOOR VOTE (JULY 29, 2004)
State Constitution requires 2/3rds approval of the 40 members of 27 votes
AYES VOTES - total 28
Democrats (24) - Richard Alarcon, Dede Alpert (member of Budget Conference Committee), John Burton (Senate President Pro Tem), Gil Cedillo, Wes Chesbro (chair of Senate Budget & Fiscal Review Commitee & member of Budget Conference Committee)), Denise Moreno Ducheny, Joe Dunn, Martha Escutia, Liz Figueroa, Dean Florez, Betty Karnette, Sheila Kuehl, Mike Machado, Kevin Murray, Deborah Ortiz,  Don Perata, Gloria Romero, Jack Scott, Byron Sher, Nell Soto, Jackie Speier, Tom Torlakson, John Vasconcellos, Edward Vincent
Republicans (4) -  Dick Ackerman (Senate Republican Leader), Roy Ashburn, Ross Johnson (member of Budget Conference Commitee),  Bruce McPherson
NO VOTES - total 11
Democrats (1) - Debra Bowen
Republicans (10)  -  Sam Aanestad, Jim Battin, Jim Brulte, Jeff Denham, Dennis Hollingsworth, Bob Margett, Tom McClintock, Bill Morrow, Chuck Poochigian, Rico Oller
NOT VOTING - total 1
Republican -  Vacancy (Pete Knight, who passed away earlier this year)

FINAL ASSEMBLY FLOOR VOTE (JULY 28, 2004)
State Constitution requires 2/3rds approval of the 80 members or 54 votes
AYE VOTES - total 69
Democrats (43) - Patty Berg, Rick Bermudez, Ronald Calderon, Wilma Chan, Ed Chavez, Judy Chu (member of the Budget Conference Committee), Rebecca Cohn, Ellen Corbett, Lou Correa, Manny Diaz, Mervyn Dymally, Marco Firebaugh, Dario Frommer, Jackie Goldberg, Loni Hancock, Jerome Horton, Christine Kehoe, Paul Koretz, John Laird, Mark Leno, Lloyd Levine, Sally Leiber, Carol Liu, John Longville, Alan Lowenthal, Barbara Matthews, Cindy Montanez, Gene Mullin, George Nakano, Gloria Negrete McLeod, Fabian Nunez (Assembly Speaker) , Jenny Oropeza, Nicole Parra, Fran Pavley, Sarah Reyes, Mark Ridley-Thomas, Simon Salinas, Darrell Steinberg (Assembly Budget Committee Chair and member of the Budget Conference Committee), Juan Vargas, Herb Wesson, Patricia Wiggins, Lois Wolk, Leland Yee
Republicans (26) - Greg Aghazarian,  Patricia Bates, John Benoit,  Russ Bogh, John Campbell, Dave Cox, Lynn Daucher, Robert Dutton, Bonnie Garcia, Tom Harman, Ray Haynes, Shirley Horton, Guy Houston, Rick Keene (member of the Budget Conference Committee), Doug La Malfa, Tim Leslie, Ken Maddox, Abel Maldonado, Kevin McCarthy (Assembly Republican Leader), Alan Nakanishi, Robert Pacheco, George Plescia, Sharon Runner, Steve Samuelian, Todd Spitzer, Mark Wyland
NO VOTES - total 11
Democrats (5) -  Joe Canciamilla, John Dutra, Hanna-Beth Jackson, Joe Nation, Joe Simitian
Republicans (6)  -  David Cogdill, Jay LaSuer, Bill Maze, Dennis Mountjoy, Keith Richman, Tony Strickland

FOR MORE INFORMATION ABOUT CA DISABILITY COMMUNITY ACTION NETWORK
URGENT - CONTRIBUTIONS NEEDED TO CONTINUE EFFORT
CDCAN may soon have to close down! The advocacy effort toward the budget - and Medi-Cal Redesign and other critical issues has continued and there has not been the expected time to finalize proposals and connect with potential grants and other funding.  Many many, thanks again,  to the friends, people with disabilities and their families, community organizations and others who have sent in generous and needed contributions and donations.  Contributions from people and organizations is  very urgently needed to keep the advocacy efforts going for the next several months, as we work to establish non-profit status, which we can focus after the budget is signed.  Apologies to anyone who have not yet received a thank you - emails, letters, calls have been overwhelming!
Please make check or money order  to:  California Disability Community Action Network  (or abbreviate CDCAN).  A method to contribute by credit card (through Paypal) is NOW set up on our website, at www.cdcan.org.   CDCAN is not yet a non-profit organization but will be soon.  Send contributions to: California Disability Community Action Network,  1225 8th Street Suite #480, Sacramento, CA  95814.  A method to contribute by credit card (through Paypal) is NOW set up on our website, at www.cdcan.org.
* Who Is CDCAN?
The California Disability Community Action Network is a non-partisan link to thousands of Californians with developmental and other disabilities, their families, community organizations and providers, direct care and other workers, and other advocates. These action alerts and news reports is for all of them. In addition it also goes to news organizations, state and local government officials and staff.
* How To Receive CDCAN Capitol News Reports and Alerts
If you would like to get on this distribution (and conversely, get off of it) please send an email with that  request to:  martyomoto@rcip.com OR sign up via the CDCAN website at www.cdcan.org.  Sharing information is part of our organizing effort. Please feel free to forward or copy  this (attribution is nice). We're all in this together!
* How To Contact CDCAN
Marty Omoto, director/organizer  -  California Disability Community Action Network   WEBSITE: www.cdcan.org
1225 8th Street Suite 480 Sacramento, CA 95814   VOICE PHONE: 916/446-0013
FAX number: 916/446-0026        email: martyomoto@rcip.com
INFO HOTLINE TOLL FREE NUMBER: 1-877-260-0267 (cannot leave messages) SAME INFO HOTLINE FOR SACRAMENTO AREA:  486-4652