To respond to this report
reply to: Marty Omoto at martyomoto@rcip.com CDCAN website:
www.cdcan.us
Breaking
News
* Budget Fails To Pass In Senate Again
26-14
* Maldonaldo Only Republican To Vote
"Aye"
* Budget Delay Reaching Critical Point
for Services
* State Controller Issues Warning
SACRAMENTO - After 32 days, the State budget
crisis continues with the State Senate falling one vote short of the 27
votes needed for passage. The vote on the budget failed 26-14.
Sen. Abel Maldonaldo (Republican - Santa 
Maria),
who was the only Republican member to abstain in the first vote on the
budget on July 20th, said he would support it now, based on the
assurances of Gov. Arnold Schwarzenegger to use his line item veto power to
eliminate $700 million from the spending plan.
"I think a vote for this a budget is for fiscal
responsibility. If I lose my election for a balanced budget that
doesn't raise taxes, than that is a price I am willing to pay" said
Sen. Maldonaldo (pictured left from earlier last year)who represents a
district that includes San Luis Obispo, Santa Maria, Monterey and Santa
Cruz. Maldonaldo is the former mayor of Santa Maria and a former
state assemblymember.
Senate President Pro Tem Don Perata (Democrat -
Oakland) who earlier on Wednesday felt "hopeful" for
passage of the budget, declined to schedule another floor session -
something that Sen. Tom McClintock (Republican - Thousand Oaks) attempted
to do in a motion that would have called the Senate back into session on
August 2 at 9 AM. That motion was defeated easily by the
Democrats. The Senate's next floor session is "upon call of the
chair" - who is Perata - and he is not likely to do that unless there
is one more vote from the Republican side to win passage of the budget
bill.
SB 77 (main budget bill)
Action: Pass (failed passage 26-14)
AYE VOTES (26)
Democrats (25): Alquist, Ron Calderon, Cedillo,
Corbett, Correa, Ducheny, Florez, Kehoe, Kuehl, Lowenthal, Machado, Migden,
Negrete McLeod, Oropeza, Padilla, Perata (Senate President Pro Tem),
Ridley-Thomas, Romero, Scott, Simitian, Steinberg, Torlakson, Vincent,
Wiggins, and Yee
Republicans (1): Maldonaldo
NO VOTES (14)
Democrats (0): -none-
Republicans (14): Aanestad, Ackerman (Republican
Senate Leader, Ashburn, Battin, Cogdill, Cox, Denham, Dutton, Harman,
Hollingsworth, Margett, McClintock, Runner, Wyland
Senate Republican Leader Hopes Budget Talks Will
Continue
Senate Republican Leader Dick Ackerman (Republican -
Tustin) said on the floor that "We have come a long way from where we
started in May and June, but we're not there yet. I'd urge that we continue
the negotiations after this budget is voted down tonight."
Sen. Tom McClintock (Republican - Thousand Oaks) said
wondered about the Governor's assurances about using his line item veto
comparing that to his assurances to Sen. Gil Cedillo (Democrat - Los
Angeles) last year regarding driver's licenses for undocmented persons (Cedillo
claimed that the Governor did not keep his promise). He also raised concerns
about the on-going structural deficits in the budget and the growth in
spending that he says is outstripping what the state brings in as revenues.
Sen. Denise Ducheny (Democrat - San Diego) who reminded
that the Assembly budget included major cuts already to the CalWORKS
program, said "I do think we are ready to start on the structural
[budget] conversations raised by Sen. McClintock , but- we can't start until
tomorrow and until this budget passes. Our clinics, the hospitals in
our disticts, the clinics in our districts, the community colleges in
our districts are starting to suffer today. Child care centers are starting
to close, people are starting to get laid off. when we don't pass this
budget today. Today is the time to do that."
Senate Republicans have refused to vote for the
budget - passed earlier by the Assembly on July 20 that included about a
$700 million shortfall. Senate Republicans - who say the real budget
deficit is billions of dollars, demanded additional new reductions and
savings of over $700 million be included before they would support the
budget as passed by the Assembly. The Senate Republicans proposed new
cuts and savings last week on July 25th saying it was critical to balance
the budget and avoid future major cuts. Senate Democrats strongly
opposed the additional reductions that they say unfairly targeted low
income children and families and public transportation. The proposed
reductions were also opposed by advocates for low income children and
families, seniors, people with disabilities and public transportation
advocates, and advocates opposing additional cuts to adult protective
services.
Delay of Budget Beginning to Impact Critical
Services for Seniors, People With Disabilities
With the State Controller issuing a warning on Tuesday
(July 31) that he can't make over $1 billion in payments, California
is now reaching the first of several critical breaking points in terms of
the ability of the State to pay for critical services and supports for
hundreds of thousands of seniors, people with disabilities, support workers
and others. This impact - at its worse, could result in temporary shutdowns
or reductions of some programs and services - though the timing
of the impact will vary depending on several factors including cash flow,
ability to obtain loans to cover the period of non-payment by the State, and
also when providers have submitted billings and also for what period those
billings cover.
When advocates are urging people not to panic, they
are also raising major concerns because providers who are running out
of money to pay staff have to make contingency plans now for reductions in
services or temporary closure. Many smaller providers do not have
the resources or ability to draw down loans to cover the period when there
is no budget in place.
The budget delay itself, say advocates, is having a
harmful impact for children and adults with disabilities, mental health
needs, the blind, seniors and others - even without calculating the impact
of any budget reductions to services or supports impacting that same
population after a budget is passed.
CDCAN is organizing a special teleconference with state
officials and advocates (open to the public) on which programs and services
are impacted and to answer questions.
IHSS and Medi-Cal Payments to Doctors and
Pharmacies Not Impacted
Certain services - such as In-Home Supportive Services
that impact over 350,000 children and adults with disabilities, the blind,
and seniors, and also Medi-Cal payments to doctors and pharmacies will
continue to be paid because there are federal laws requiring such
payments, according to state officials.
Wide Range of Services, Programs For Seniors,
People With Disabilities Will Be Hit
However the State, according to state officials, will
have no authority to make any further payments for programs including
Adult Day Health, Home Health Agencies, institutional facilities including
nursing homes, and other programs covering a wide range of services and
supports critical for hundreds of thousands of children and adults with
disabilities, mental health needs, seniors, people with traumatic brain and
other injuries, people with MS, Alzheimer's and other disorders, low income
families across California.
For many organizations and individuals the actual
breaking point will occur at varying times depending on when billings for
reimbursement were submitted, and what periods of time are covered.
Regional Centers Serving People with
Developmental Disabilities Impacted
* Regional Centers, who fund community-based services to
over 220,000 children and adults with developmental disabilities are also
impacted, though the impact is likely not to be felt until sometime in
August and will vary from regional center to regional center depending
on cash flow and demands on funding.
* A state law authorizes the State to pay for
most regional center funded services through August if there is no budget,
providing that there is money left in a special fund for that purpose. Money
from that special fund was allocated to the Department of Developmental
Services (DDS) to cover most expenses for July. That special fund
however is now depleted, according to state officials.
* However, Regional Centers may have enough funding to
cover August, with the combination of funding coming from that special
fund for their July expenses, and funding coming in early August that
is authorized by legislation signed by the Governor, to cover costs
of services that went over what was appropriated in last year's budget that
ended June 30. That should mean that most regional centers should be
able to continue operations as usual through most of August .
* That can vary depending on a number of factors however:
the cash flow of the different regional centers and also if other
providers - such as nursing homes or adult day health program who
have contracts directly with the State and are facing imminent cut-off of
payments beginning August 1 - who also provide services to
persons who are eligible under the regional center system, to demand payment
instead from regional centers - though it is not clear if a mechanism exists
for that to happen.
State Controller Warns State Unable to Pay
$1.1 Billion for Services
State Controller John Chiang announced on Tuesday that
the ongoing budget stalemate prevented his office from paying an estimated
$1.1 billion to a wide range of services and programs, including many that
impact seniors, people with disabilities, children and others.
Another $2.1 billion in payments will be withheld if
the stand-off continues through August according to the State Controller.
IHSS and SSI/SSP Still To Be Paid - But Many
Other Programs Won't
Some services - required by federal law, are exempted
and payments will still be made for the following according to the State
Controller's office:
* SSI/SSP Supplemental Security Income/State
Supplementary Payment
* In-Home Supportive Services (IHSS) and other
federally required (mandated) programs
* Debt service and other financial obligations
authorized by the State Constitution.
* Payroll for state employees covered by the Federal
Fair Labor Standards Act.
* Vendor payments for services provided in the fiscal
year ending June 30 - though, with some exceptions, no payments for
services beyond that point without a state budget.
• Expenses with ongoing appropriations from the Legislature, including
Medi-Cal doctors and pharmacies, CalWORKs, income tax refunds and
payments on claims for unclaimed property.
* Basic funding to K-12 education - though this does not include
programs like special education (see below) or payments to vendors that
provide services to the schools.
State Controller Can't Pay Nursing Homes,
Hospitals, Managed Care Plans
Although the State is authorized to
make Medi-Cal payments to nurses, doctors and pharmacists who directly
bill Medi-Cal, the State Controller, the elected official who pays the
state's bills, said he does not have the legal authority to pay
Medi-Cal costs to institutions, such as hospitals, nursing
homes, managed health care plans, and clinics, and also to regional
center funded services covered by Medi-Cal. .
During previous no-budget times, those institutions
and programs have relied on a $1 billion General Fund contingency
fund to tide them over. However, the Department of Health Care Services
last week said the contingency fund is depleted, and that the
State will and be unable to pay $227 million to hospitals this week
Some larger programs and providers are able to
continue operations with loans - the cost of which the State does not
reimburse probably through August. However smaller providers who
also provide critically needed services to people with disabilities,
seniors, people with mental health needs, and others may not have the
resources to continue much longer - with some reports indicating closure
or imminent plans of closures of some programs this week and in the
coming weeks. those services range from child care to adult day
health, nursing homes and other critical services. See previous CDCAN
Reports for more details on this impact.
Other programs or services impacted by budget delay:
* Special and other education programs:
Without a budget in place for the fiscal year that started July 1, the
Controller this month was legally prohibited from paying $326.6 million
to community colleges, $170 million to school districts for categorical
programs such as special education and remedial summer school; and $140
million to vendors who provide food, paper products and supplies to the
State.
Child Development Program Funds:
He has been forced to withhold $300 million in child development program
funds that go to schools and private pre-school and day care programs
under contract with the Department of Education.
Highways and Streets: If no budget is enacted
in August, the Controller will be unable to disburse $100 million from the
highway tax, collected in July that is scheduled to be sent at the end of
August to cities and counties for local street and road maintenance and
repairs.
Vendors: Vendors for services provided to the
State after July 1 (some exceptions include most regional center
funded vendors, who can be paid out of the special contingency fund - now
depleted - for at least the month of July.
Elected officials and appointed staff:
Salaries and per diem of state elected officials and their appointed
staff.
Contributions
URGENTLY Needed To Continue
Advocacy
Without Borders: Connecting People With Disabilities, Mental Health Needs,
Seniors, Traumatic Brain & other injuries, People with MS & other
health needs, including People of color, different languages, cultures,
Families, Workers, Providers, & Organizations to Rights & Unified
Action. This report - and the CDCAN townhalls, and other events and projects
are for all of them and for promoting advocacy without borders toward
unified action. We are one community.
To
respond to this report reply to: Marty Omoto at martyomoto@rcip.com
CDCAN website: www.cdcan.us
To
continue the CDCAN website, the CDCAN News Reports. sent out and read
by over 45,000 people and organizations, policy makers and media across
California and to continue the CDCAN "Advocacy Without Borders Townhall
Telemeetings" which since December 2003 have connected thousands of
people with disabilities, seniors, mental health needs, people with MS and
other disorders, people with traumatic brain and other injuries to public
policy makers, legislators, and issues. Please send your
contribution/donation (make payable to "CDCAN" or "California
Disability Community Action Network):
CDCAN
1225 8th Street Suite 480
Sacramento, CA 95814
or go to the CDCAN website at and click on "DONATE TO
CDCAN" to contribute using credit card via Paypal.
The CDCAN Townhall Telemeetings are partially funded by a small grant from
the USC UCEDD, Grant #90DD0540 from the Administration on Developmental
Disabilities. (note: the opinions expressed or content in these reports do
not necessarily reflect the views or opinions of the USC UCEDD.
MANY THANKS to Manteca CAPS, Training Toward Self Reliance, UCP, California
NAELA, Californians for Disability Rights, Inc (CDR) including CDR chapters,
CHANCE Inc, Parents Helping Parents, Arriba, Strategies To Empower 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, developmental center families, and hundreds of
individuals
