CDCAN
CALIFORNIA DISABILITY COMMUNITY ACTION NETWORK
DISABILITY RIGHTS
NEWS REPORT

#037-2006  April 10, 2006 Monday

Advocacy Without Borders:
Connecting people with disabilities & seniors to rights and unified action

1225 8th Street Suite 480 - Sacramento, CA 95814  916/446-0013  Fax: 916/446-0026
Marty Omoto - director  email: martyomoto@rcip.com    website: www.cdcan.us

 

California State Budget

* CDCAN VOTE RECORD REPORT ON SSI/SSP
* ADVOCATES PUSH REPEAL OF LAST YEAR'S SSI/SSP COST OF LIVING CUT
* WANT SEN BUDGET COMMITTEE TO REJECT GOVERNOR'S CAPI PROPOSAL

SACRAMENTO -  Advocates for people with disabilities, low income seniors and families are pushing the Legislature to rescind last year's budget action that authorizes the State to withhold for the first three months of 2006 and 2007, federal money meant for increases in cost of living for hundreds of thousands of the lowest income people with disabilities, people who are blind, seniors and families who receive the federally funded Supplementary Security Income (SSI) for basic living expenses.  That proposal by the Governor was passed by both houses of the Legislature last July as part of the July 2005-June 2006 State Budget and included the suspension for two years, beginning January 2006, of increases in State money for the State Supplemental Payment or SSP portion of the cash grants. A new proposal by the Governor to extend withholding of federal money meant for increases of costs of living for SSI recipients was rejected by both houses however. 

Advocates called the withholding of federal money meant for SSI recipients and diverted for other State general fund purposes, and the suspension of the state cost of living for SSP recipients as "morally wrong" and a "devastating cut" to the most vulnerable Californians, citing increased costs in housing, food and transportation and additional new costs related to the new federal Medicare Part D Drug Program.  [Note: CDCAN will be releasing a new revised action alert letter later today - see Action Alert or go to CDCAN website tonight at www.cdcan.us]

Advocates also oppose the
Governor's proposal to extend the "deeming period" from 10 years to 15 years for persons who entered the US on or after August 22, 1996, who are in need of assistance through the  Cash Assistance Program for Immigrants (CAPI) . The "deeming period" is the time period when
the income and resources of the person sponsoring the person coming into the US, are taken into account when determining benefit eligibility. 

Actions Taken By Both Houses on SSI/SSP and CAPI
* The full Senate Budget Committee voted on January 26, followed by identical action by the Assembly Budget Subcommittee #1 on Health and Human Services on March 29, to reject the Governor's new proposal to extend the withholding of federal money meant for increases in cost of living for SSI/SSP recipients for another 15 months beginning April 2007 and ending June 2008 
* Both houses however have not taken action yet on the issue of repealing last year's budget action that withholds the federal cost of living increases for SSI/SSP recipients for the first three months of 2006 and 2007. 
* Some advocates however believe that Assembly Budget Subcommittee intended to take that action, but the motion was not clear and are working to clarify what happened. 
* The Assembly Budget Subcommittee also took action on March 29 to reject the Governor's proposal regarding Cash Assistance Program for Immigrants, while action on that issue is still open in the Senate. 

.
Background of SSI/SSP and CAPI
* The SSI/SSP program provides cash grants to persons who are elderly, blind and/or with disabilities, and unable to work and who meet the programs federal income and resource requirements. The total proposed State budget for July 2006-June 2007 (state and federal funds) for the SSI/SSP program is $3.6 billion.
* The SSI program is administered by the federal Social Security Administration and in California, overseen by the Department of Social Services, which also oversees the SSP part of the grant. 
* The Social Security Administration determines eligibility, computes grants, and disburses monthly payments to recipients. The state establishes the rant level of (SSP) State Supplementary Payments for  individuals, which is funded only by State money. 

* SSI/SSP grant levels vary based on a person's  living arrangement, marital status, minor status and whether she or he is a senior, blind or a person with disabilities. 

* SSI/SSP recipients are not eligible in California  for Food Stamps.

* Persons who receive SSI/SSP are eligible for the Aged, Blind or Disabled Medi-Cal Program with no share of costs, for the In-Home Supportive Services (IHSS) program and may be eligible for other programs designed to help people remain in the community.
* Currently about 1,212,000 Californians receive SSI/SSP in 2005-2006, with that number expected to grow to 1,241,000.  Of that number about 700,000 are persons with developmental and/or other disabilities, about 300,000 low income seniors and about 2% persons who are blind.  Of the total SSI/SSP recipient population, 8%  percent of SSI/SSP recipients are under age 18, 49% of the SSI/SSP recipients are between ages 18 to 64, and 43%  are age 65 and older [Department of Social Services and Senate Budget Committee figures]
* As of April 2006, the maximum grant will be $836 per month for a senior or person with disabilities, living independently and $1,472 per month for an aged or disabled couple living independently.
* The Governor and the Legislature previously passed and enacted as part of previous state budgets, suspensions of State cost of living adjustment (for January 2004, January 2006 and January 2007) that impact the SSP portion of the SSI/SSP grant.  The Governor and Legislature also approved withholding the federal increase to SSI for three months (recipients will receive the federal increase on April 2006 and April 2007 instead of January of both years. The Governor's July 2006-June 2007 budget proposal would have extended the delay for another 15 months beginning April 2007.  The federal money instead would have been used to cover other state programs or help bridge the state budget shortfall. 
* The Cash Assistance Program for Immigrants (CAPI) is similar to the SSI/SSP program and was established in 1997 to provide cash assistance  to seniors, blind and persons with disabilities who are also legal immigrants - persons who became ineligible for SSI as a result of welfare reform. This state-funded only program is overseen by the Department of Social Services and locally by the counties. CAPI grants are $10 less than SSI/SSP grants for individuals and $20 less than SSI/SSP grants for couples.  older. The number of people receiving these grants (caseload) is projected to decrease by 2.8% to about 7,817 persons per month (on average) in 2006-07.  The Governor's proposal calls for extending  the "deeming period"  from ten to fifteen years for immigrants who entered the country on or after August 22, 1996. During the "deeming period", the income and resources of the person sponsoring the immigrant are taken into account when determining benefit eligibility.


Governor's Budget Proposal Hit Poor and SSI/SSP Recipients Hardest Advocates Say
* Last year's budget suspended for two years (January 2006 and January 2007) the state cost of living increase to the SSP portion of the grant, and delays for the first three months of 2006 and 2007,  passing the federal cost of living increase to SSI recipients (using those state and federal cost of living funds for other State budget needs). 
* That reduction to the SSI/SSP program was the largest single budget cut impacting people with disabilities and seniors in the July 2005-June 2006 State  budget passed last year by the Legislature.  

* For this year, the Governor proposed that the federal cost of living increase or adjustment (or "COLA)  due to be given to SSI recipients 3 months late in April 2007 be delayed further, by a total of 15 additional months or another year and three months - until July 1, 2008. 
* That would mean SSI grants would be frozen from April 2006 to July 2008 at a maximum of $836 for individuals and $1,472 for couples per month, with the federal money meant for cost of living increases for 2007 and the first 6 months of 2008 diverted to other State budget needs.  The budget committees of both houses have rejected this proposal. 
* The delay would have resulted in a reduction (or savings to the state) to the SSI/SSP program budget of $48 million in the July 2006-June 2007 budget, and another $185 million in the July 2007 - June 2008 budget.

Next Steps
* SSI/SSP Proposal Dead - For Now:  While no budget action is final until a budget is actually passed by the Legislature and signed by the Governor, the strong and early action taken by both houses now rejecting the Governor's proposal that would have extended by another 15 months beginning April 2007 the withholding of federal money meant for cost of living increases for SSI/SSP recipients,  is considered dead - at least for now.
* Governor's Revised Budget In May: Things could change depending on the State's economic picture when the Governor releases his revisions to his proposed budget, in Mid-May (referred to as the "May Revise" or the "May Revision") and what he proposals in that revised budget.
* Last Year's SSI/SSP Budget Action: Last year the Governor proposed and the Legislature approved the withholding of federal funds for cost of living increases for people who receive SSI portion for first three months of January 2006 and 2007, and a two year suspension of State funds meant for cost of living increases for the SSP portion of the grant, beginning January 2006.  Advocates and some legislators were pushing that this action be rescinded and funds restored.  Neither house has taken any action on this yet - though some advocates say that the Assembly Budget Subcommittee on Health and Human Services intended to take that action on March 29, though the motion made by Assemblymember Hancock was not clear and needs to be clarified.  Budget committee staff in both houses however take the position that no action has been taken yet regarding last year's changes made to the SSI/SSP program. 

Budget Committee Members from Both Houses Make Strong Comments on SSI/SSP Proposal
At the March 29 Assembly Budget Subcommittee hearing, Assemblymember Hector De La Torre (D-Southgate, 50th District) chair, pointed to a large stack of over 600 letters from people across the State opposing the Governor's proposal and noted that  huge response, and the public testimony during the hearing saying that "...I personally believe that, as someone said from the audience, that when the Federal government sends money [for SSI], it needs to go to that person.  I don't understand on a policy level how we can justify intercepting money meant for the recipients..."

Assembly Budget Subcommittee members present at the time of the March 29 vote - Assemblymembers Hancock, Mullin and Niello all announced their opposition to the Governor's proposal at the hearing - though Niello echoed his Republican counterparts in the Senate by asking that the subcommittee identify or suggest other areas of the State budget for reductions to cover their action. 

At the January 26 hearing of the full Senate Budget and Fiscal Review Committee, Sen. Denise Ducheny (D-San Diego), who chairs the Senate Budget Subcommittee on Health and Human Services, which covers many of the programs and services impacting people with disabilities and seniors, said that the SSI cost of living adjustment are
"...federal funds specifically for the purpose of providing a COLA [cost of living adjustment] for SSI recipients. So I view this one as stealing money. It's not the same as general fund expenditures.  Its not the same as the state COLAs - which I am not happy with [the action by the Legislature to suspend it], but we already agreed to delay. This is the federal funds portion only.  And basically what we [the State]  are proposing to do is to take those federal funds, as little as they are, from the senior citizens they were designed to support."

At that same hearing, Sen. Tom McClintock (R-Thousand Oaks)  wondered how the budget could absorb the costs without making other spending cuts.  He attempted to amend Ducheny's motion by adding an additional proposal to eliminate thousands of new state employee positions and  force the Schwarzenegger Administration to justify each position one by one as a means of "balancing the ledger".. Senate Budget Committee Democrats opposed the McClintock motion, preferring to deal with the proposed new state employee positions during the regular budget subcommittee hearing process.

Sen. Ducheny, clearly troubled by the Governor's SSI/SSP proposal said at the January 26th Senate Budget Committee hearing that "with great reluctance last year as I recall, we agreed to delay the federal COLAs [cost of living adjustments] until April for both the current year and now what would be the budget year...it seems to me it was already a two year deal - we didn't want to that in the first place. We can argue about it the rest of the year when these revenues come in about whether we should allow the federal COLAs back in January. But it seems highly inappropriate to change that deal in the middle of it.  You can argue about 07-08 [budget year] next year - but you're [looking at the Governor's Department of Finance] really proposing things about 07-08 and to change what we did last year. If you need space to find how to replace it, I suggest the first thousand new positions that you proposed in this budget in Health and Human Services would be places that we can eliminate and start from scratch if we need to find replacement revenue right away. I think we all enter this process understanding the COLA [delay of the federal cost of living adjustment] right now is April 06 and April 07 and that we then take the budget with that as the understanding as try to find the savings that are necessary and deal with some of the issues like unallocated cuts and current laws and expansions.  In a form of a motion, I move that we deny the proposal to delay the [SSI/SSP] COLA  for an additional 15 months."

At the same January 26th Senate Budget Committee Hearing, Sen. McClintock while conceding the motion had "obvious" support, but  that the Governor's proposed budget already calls for major increases in spending saying that "now we are already going to spend $5.9 billion more than we take in. We're looking at 8.3% one year increase in spending - which is an increase in spending substantially faster than what we saw under the Davis Administration.  Could I get an indication from the majority [Senate Budget Committee Democrats] how much more we will be adding to this budget before we are done?"
Chesbro however was not persuaded by McClintock's point, responding that "I think this lays down a serious challenge on how to finance this.  I think singling out the most vulnerable portion of our population to bear  to bear a highly disproportionate share of the burden is wrong."

During that same hearing on January 26th, Sen. Sheila Kuehl (D-Santa Monica) felt the arguments about finding funds to offset the cost of restoring funding for SSI was wrong, telling the Senate Budget and Fiscal Review Committee that "I think that taking the Governor's proposal about stealing the federal money that was allocated specifically for this purpose and holding that as the argument to be refuted by saying: how are you going to replace that money?  kind of turns the question on its head from my point of view, and I speak in support of the motion. The question is why are we taking federal funds specifically designated for poor, and blind and disabled people and using that to fill a budget gap, and not to fill it very much. It's a great big budget gap, and you take $48 million from the budget year we're considering [the amount of the SSI federal COLA] and say,  well we're going to throw this in a very big bucket, when it hurts people much, much more then it helps the State by taking that particular money. So I think the question is not how shall we replace this little bit, but how shall we solve the larger problem, which I think has been asked by both sides of the aisle, to solve the structural [state budget]  problem"

Before the Senate Budget Committee took the vote January 26,  the committee Vice Chair Sen. Dennis Hollingsworth (R-Murrieta, 36th District) said "Mr. Chairman [to Sen. Chesbro], before we take a vote on that [Ducheny motion to reject the Governor's SSI proposal] lest the public watching think that California is being stingy and the Governor's proposal is being stingy , I want to point out that in comparison to other states, that the next closest state on this [SSI/SSP grants]  is $1,000, and we are at $1,500 per couple, $1,700 for blind and 1,008 for New York,  for the next closest - and all the rest is far below that - keeping things in perspective."

Sen. Chesbro however disagreed with the perspective, saying that "Well my response is,  I challenge anybody in this [hearing] room to try to get by with that amount of money anywhere in the State of California."

Earlier during the January 26th hearing, the Governor's Department of Finance Deputy Director Vince Brown gave an update of the proposed budget to the committee, and said that it would "fully 
fund the transfer of $1.4 billion as I mentioned, we are proposing $920 million to prepay a portion of the loan, and we also propose a constitutional amendment to protect Prop 42 [transportation initiative] from future suspensions."
Sen Kuehl, in later exchange just before the January 26th vote on the Ducheny motion was taken,  with Sen. Hollingsworth, referred back to Brown's budget overview on that point linking it to the Governor's SSI proposal of protecting some funding and not protecting others:

Sen. Kuehl: "It's still federal money, right?"
Sen. Chesbro: "Yes."
Sen. Kuehl: "They [federal government] proposed it to the State for a COLA for this purpose? Is that correct?"
Sen. Chesbro: "Correct."
Sen. Hollingsworth: "However we did talk about the [State] general fund impact, of $48 million this year and over $180 million next year."
Sen. Kueh (voice sounding sharp): "Well, take the Prop 42 [transportation initiative] money and spend it for anything you want. I mean You can argue one way or another, but not both."


CDCAN VOTE RECORD REPORT
Senate Budget and Fiscal Review Committee
Date: January 26, 2006
Total Members: 13
Democrats (8): 
Sen. Wes Chesbro (D-Arcata, 2nd District), Chair; Sen. Denise Ducheny (D-San Diego, 40th District);  Christine Kehoe (D-San Diego, 39th District); Sheila Kuehl (D-Santa Monica, 23rd District); Alan Lowenthal (D-Long Beach, 27th District); Mike Machado (D-Linden, 5th District); Jack Scott (D-Altadena, 21st District); Joe Simitian (D-Palo Alto, 11th District)
Republicans (5): Sen. Dennis Hollingsworth (R-Murrieta, 36th District), Vice Chair; Bob Dutton (R-Rancho Cucamonga, 31st District); Bob Margett (R-Arcadia, 29th District); Tom McClintock (R-Thousand Oaks, 19th District); and George Runner (R-Antelope Valley, 17th District)
Note:
This action by the full Senate Budget Committee (as opposed to the Senate Budget Subcommittee #3 on Health and Human Services) was unusual because it was taken at its first meeting, January 26, when normally no actions are voted on.

Budget Issue: SSI/SSP (Federal cost of living increase)
Action 01/29606:  REJECTED Governor's proposal to delay (withhold)  the 2007 SSI federal cost of living adjustment until July 2008 and restored funding.
Vote: 7-4 (with 2 not voting/abstained or not present)
AYES Votes - 7
Democrats Voting Aye (7): 
Chesbro, Duchney, Kehoe, Kuehl, Lowenthal, Machado, and Scott
Republicans Voting Aye (0): -none-
NO Votes - 4
Democrats Voting No (0): -none-
Republicans Voting No (4): 
Hollingsworth, Dutton, Margett, and McClintock
ABSENT, ABSTAINING OR NOT VOTING- 2
Democrats absent/abstaining or not voting (1): Simitian
Republicans absent/abstaining or not voting (1): Runner
Next Steps: The Assembly Budget Subcommittee #1 on Health and Human Services subsequently took the same action on March 29. This means - barring any specific reversal by either house - that the Governor's proposal is "dead".  However it should be noted that no action by either house or the Governor is final until a budget is passed by the Legislature and signed by the Governor.  The full Senate Budget Committee or subcommittee took no action on the Cash Assistance Program for Immigrants (CAPI)  proposal by the Governor - though the subcommittee did hear the issue in early March, but left the item open for further action. 

CDCAN VOTE RECORD REPORT
Assembly Budget Subcommittee #1 on Health and Human Services
Date: March 29, 2006
Total Members: 5 (3 Democrats and 2 Republicans)
Democrats (3):  Assemblymember Hector De La Torre (D-Southgate, 50th District), Chair, Loni Hancock (D-Berkeley, 14th District) and Gene Mullin (D-South San Francisco, 19th District)
Republicans (2): Assemblymember Sam Blakeslee (R-San Luis Obispo, 33rd District), Roger Niello (R-Fair Oaks, 5th District)

Budget Issue: SSI/SSP (Federal cost of living increase)
Action 03/29/06:  REJECTED Governor's proposal to delay (withhold)  the 2007 SSI federal cost of living adjustment until July 2008.
Vote: 5-0
AYES Votes - 5
Democrats Voting Aye (3):  De La Torre, Hancock (made the motion), Mullin (seconded motion)
Republicans Voting Aye (2): Blakeslee and Niello
NO Votes - 0
ABSENT, ABSTAINING OR NOT VOTING- 0
Next Steps: This action was identical (or "conformed") to the action taken by the Senate Budget and Fiscal Review Committee on January 26.  This means - barring any specific reversal by either house - that the Governor's proposal is "dead".  However it should be noted that no action by either house or the Governor is final until a budget is passed by the Legislature and signed by the Governor. It does not reverse previous action taken last year to withhold federal cost of living money owed to SSI/SSP recipients for the first three months of 2006 and 2007 or rescind the two year suspension of the State cost of living that began on January 1, 2006.  Some advocates believe that the Assembly Budget Subcommittee in fact intended to at least rescind the withholding of federal cost of living money for the first three months of 2007, though both the Senate and Assembly budget committees officially do report that additional action.

Budget Issue: Cash Assistance Program for Immigrants (CAPI)
Action 03/29/06:  REJECTED Governor's proposal to extend Cash Assistance Program for Immigrants deeming to 15 years.  .
Vote: 3-1
AYES Votes - 3
Democrats Voting Aye (3):  De La Torre, Hancock and Mullin
Republicans Voting Aye (0):  -none-
NO Votes - 1
Democrats Voting No (0): -none-
Republicans Voting No (1): Niello
ABSENT, ABSTAINING OR NOT VOTING- 1
Democrats Absent/Abstaining or Not Voting (0): -none-
Republicans Absent/Abstaining or Not Voting (1):  Blakeslee
Next Steps: The Senate Budget Subcommittee #3 on Health and Human Services heard this issue in March but did not take action and left open.

How To Receive CDCAN Capitol News Reports and Alerts
The California Disability Community Action Network is a non-partisan link to tens of thousands of Californians in every community, including people of color, people of every type of disability, including people with physical disabilities, people with developmental and other disabilities, people with traumatic brain and other injures, people with mental health needs, seniors, people with MS, Alzheimer's and others, and all of 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.   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 NEW CDCAN website at www.cdcan.us  Sharing information is part of our organizing effort. Please feel free to forward or copy  this (attribution is nice but not necessary). We're all in this together!
MANY THANKS to Training Toward Self Reliance, UCP, California NAELA, The University Affiliated Programs, CHANCE Inc, Parents Helping Parents, Arriba, Strategies Toward Empowering People, Parents Helping Parents, Asian American parents groups, Resources for Independent Living and many other Independent Living Centers, several regional centers, People First chapters, IHSS workers, other self advocacy and family support groups California Disability Rights Inc , developmental center families, and hundreds of individuals like Maureen Fitzgerald, Terri Lantz, Christal Hopkins, Lisa Brown, Anna Wang, Dennis Dishaw, Bob Benson, David Engberg, Connie Arnold, and so many others who through their support and contributions, make the non-partisan CDCAN reports and townhall telemeetings possible.  Thanks also to partnerships and the good people with the State Council on Developmental Disabilities, and also the Department of Health Services, the Department of Developmental Services, Department of Social Services and the CA Health and Human Services Agency and other agencies, and the State Legislature and staff, the Legislative Analyst Office.  Good people who do good things can make a difference
together