* DELAY IMPACTING PEOPLE WITH DISABILITIES, SENIORS

* MORE COMMUNITY PROVIDERS REACHING CRISIS POINT

* BAKERSFIELD SENIOR PROGRAM TO CLOSE DOWN FRIDAY

* DEMOCRATIC LEADERS REFUSE SENATE REPUBLICAN DEMANDS

* SENATE REPUBLICANS SAY BUDGET NEEDS TO BE BALANCED

* BUDGET STAND-OFF COULD LAST THROUGH AUGUST

 

SACRAMENTO (CDCAN)  -  With more community-based providers reaching a crisis point  because the State cannot pay its bills without a budget, now 40 days late, the stand-off in the State Senate continues with no end in sight .  With tensions increasing, Senate President Pro Tem Don Perata (Democrat - Oakland) and Assembly Speaker Fabian Nunez (Democrat - Los Angeles) issued statements yesterday (August 8) flatly rejecting Senate Republican demands to make changes in the budget plan passed earlier by the Assembly. Senate Republicans responded by saying they would not vote for a budget until cuts in the growth in spending were made to the budget that they claim is not balanced. 

 

The State Constitution requires 27 members of the 40 member State Senate to approve the budget - with Democrats holding 25 seats, at least two of the 15 Republicans are needed to vote for the budget.  The budget stand-off in the State Senate, barring any last minute developments, could last through August and possibly beyond that.

 

Legislative Democratic Leaders Refuse Senate Republican Demands

Nunez in a stinging letter to Senate Republican Leader Dick Ackerman (Republican - Tustin) said that "...some 82 of the 120 members of the Legislature, plus the Governor, are supporting this budget" and  that "...you and other members of your caucus have continued to block enactment. Unfortunately, these actions continue a trend that occurred during our numerous discussions on the budget throughout the spring – changing demands, no interest in compromise, and lack of an exit strategy."  . 

 

Senate President Pro Tem Don Perata (D-Oakland) said in a press conference, also on Wednesday, that Senate Democrats will not make any side deals with Republicans to "weaken California’s environmental protections as part of negotiations to approve a state budget", saying that “I’m here today to remove any doubt or ambiguity about where I am and where my caucus is," and that "I will not bargain away California’s environment to oil refiners or multi-state developers.”  Previously Perata also said that Senate Democrats will refuse to consider any additional cuts proposed by Senate Republicans on July 25th, beyond what was already in the Assembly passed version of the budget. 

 

There was no public response yet from Sen. Ackerman.

 

Perata also announced the following:

* Would not allow any legislation in the State Senate to move until a budget is approved.  If the stalemate lasts through August 20th - when the Assembly is set to return from their month long recess, the impact will divert action and attention on scores of bills and issues pending in both houses including health care reform. 
* Also on Wednesday announced the removal of Sen. Jeff Denham (Republican - Merced, 12th District) from the Senate Governmental Organization Committee in retaliation for his continued refusal to vote for the budget.  Denham, representing a moderate Republican district, is considered one of two possible Republican votes for the budget - with Sen. Abel Maldonaldo (Republican - Santa Maria) already supporting it as of August 1.  (see below for Denham's response to Perata's action)

BUDGET DELAY IMPACT: MORE COMMUNITY PROVIDERS REACHING CRISIS POINT 

With the State not able to pay over $1 billion in reimbursements, with some exceptions, thousands of community-based providers have reached or are reaching crisis points that could mean reductions in critical services to seniors, children and adults with disabilities, low income children, people with mental health needs and others across California who are receive a wide range of programs and services, including those in nursing facilities, intermediate care facilities, adult day health centers serving seniors, independent living centers and more.  [CDCAN is issuing an alert on this issue, including a special CDCAN Townhall Telemeeting - also, see commentary by Marty Omoto urging Governor Schwarzenegger to issue executive order to ensure that state agencies will respond.  Persons impacted by the budget delay, please continue to send information to CDCAN, at email: martyomoto@rcip.com ]

Last week,  DSN, a statewide provider organization of health facilities, said that many nursing homes and intermediate care facilities that serve seniors and persons with developmental disabilities face the possibility of reductions in services or closure. 

 

Bakersfield Senior Program Set to Close Friday: "Lost Faith in Government" Says Provider

The first of some 340 adult day service providers in California - who serve over 38,000 seniors and adults with significant disabilities - announced yesterday (August 8) that it will close its doors this week as the direct result of the California legislature’s failure to pass a budget. The facility, Chateau D'Bakersfiled, in Bakersfield, depends entirely on state funding to provide a wide range of services, from skilled nursing and medical supervision to meals and physical, occupational and speech therapy, for up to 140 local seniors and adults.

 

Sam Mohan, who with his wife Anu, operates the Bakersfield program said with apparent desperation that “We have been providing services to participants without reimbursement for weeks. I’ve lost faith in government.

 

Mahon added that “We have pleaded with the government to help us continue operating. With 100% of our funds coming from Medi-Cal to serve these low income individuals, we are completely dependent on state funding. The cash flow has stopped and we are left with no choice but to close."

 

Lydia Missaedlides, executive director of the California Association for Adult Day Services said that  “Closing these facilities is nothing less than a disaster for every California community. The loss of vital health care services is inhumane at best. The impact on families who depend on these centers as their only affordable source of safe, secure, reliable supervision is equally devastating. Families throughout California are going to face economic hardships while those they love and care for face severe medical, mental and psychological consequences." 

 

She added that "It’s hard to imagine a more shameful course of action than depriving these people of critical health services."

 

Other statewide advocacy groups and agencies, including the California Foundation for Independent, CANAELA, Living, the Alzheimer's Association and others reported  major concerns for thousands of people with disabilities and seniors and the impact of the budget delay. 

 

Meanwhile, providers in Rancho Cucamonga have organized a rally August 10, Friday at 12 noon at State Sen. Dutton's district office at 8577 Haven Avenue, Suite 210, Rancho Cucamonga,  to protest the delay in passage of the budget.  One of the organizers, Gail Horrigan, of Horrigan Enterprises, and a provider , said "...it is unacceptable for government to threaten the liveliehood" of people with disabilities".  She urged persons with developmental disabilities, families and others to join in the protest because Intermediate Care Facilities for the Developmentally Disabled (ICF-DD) depend nearly 100% on Medi-Cal funding - and that funding has been cut off until a budget is passed and signed into law.  Horrigan can be reached at 909-484-5561 for more details and information or Gary MacComber at  (916) 449.3907.   

Some Community Programs Will Feel Impact Later

The 21 non-profit regional centers who have contracts with the Department of Developmental Services to coordinate and fund many community-based services for persons with developmental disabilities are impacted too - though the impact will likely not be felt until about the end of August.  However many persons with developmental disabilities are in programs or receive services, such as Intermediate Care Facilities, nursing homes, adult day health programs not funded directly by regional centers that will soon face possible reductions or closure depending on the provider.

 

Some services - such as Medi-Cal payments directly for doctors and pharmacies must continue.  Other payments, including SSI/SSP, and In-Home Supportive Services are also not impacted by the budget delay because of federal law - however the persons receiving those services or payments might be impacted depending on other services they receive.  See previous CDCAN report for a full listing - or watch for the soon to be scheduled CDCAN Townhall Telemeeting in the next day or so. 

 

BUDGET ACTIONS SO FAR

ASSEMBLY

* July 20 - approved 56-23,  the main budget bill, SB 77, and several budget related bill (called "trailer bills") and sent the package to the State Senate.  The Assembly session began Thursday evening, July 19th and ended just before 4:00 AM on July 20th. 

* The Assembly version - the version on the Senate Floor - includes a five month suspension (January 1, 2008 through May 31, 2008) of the cost of living increase for the state portion of the SSI/SSP (Supplemental Security Income/State Supplemental Payment) grants to lowest income people with disabilities, seniors, the blind.  The cost of living for the federal portion of the grant (SSI) was not touched and is scheduled to be passed on to recipients as scheduled, January 1, 2008. 

* Other cuts included a one year suspension of the cost of living increase for people on the CalWORKS program, and a shift of $1.3 billion of transportation funding to the state general fund.  Significant changes were also made (in budget trailer bill) for several programs, including the Adoption Assistance Program involving children with developmental disabilities.  None of these proposals however are in effect until the Senate and the Governor approves the budget bill and related budget bills.

* July 20 - Recessed until August 20th (scheduled summer recess).  Assembly Speaker Nunez says he will not call the Assembly back in sooner "under any circumstances".

STATE SENATE

* July 20-21: took up the Assembly version of the budget on July 20th, and in a nearly 24 hour session that ended Saturday morning, July 21, the Senate failed to pass it by vote of 25-14, with one Republican, Sen. Abel Maldonaldo (Republican - Santa Maria) abstaining.  Senate President Pro Tem Perata asked Senate Republicans to submit a proposal by July 25th that would get all of their 15 votes for the budget - and at least 12 Democrats for the necessary 27 votes needed for passage. 

* July 25 - Senate Republicans, who said the Assembly passed version of the budget was "not balanced",  released a proposal calling for over $700 million in additional cuts and savings, including significant proposed additional reductions to the CalWORKS program, and shifting of more funding from public transportation to the general fund.  Senate Republicans said the reductions were necessary to match growth in spending to revenues - and that not making cuts now would result in more "devastating" reductions later. The Senate Democrats declined to take any action on the proposal saying it was "dead on arrival".  Perata urged the Governor to intervene and get Senate Republicans to pass the budget.  See CDCAN website at www.cdcan.us for copy of the Senate Republican proposal and other information. 

* July 26 - Governor Schwarzenegger holds press conference and says "now is the time" to pass the budget saying that services to Californians will be impacted and urged the State Senate to pass it. 

* August 1: Gov. Arnold Schwarzenegger spoke with Senate Republicans for over an hour pledging that he would "line item veto" $700 million from the budget and urged passage of the Assembly version, just before Senate President Pro Tem Perata called the Senate back in session for a second vote on the budget.  Perata had said earlier that he was "hopeful" of passage - though no budget deal was announced before the session started.  When the floor debate on the budget bill began, only Sen. Abel Maldonaldo (Republican - Santa Maria) said he would vote for the budget among the 15 Republicans in the Senate.  The budget bill failed passage again, this time by a vote of 26 to 14, one vote short of approval.  Republicans in the Senate - Ashburn, McClintock and Ackerman all stood up and opposed the budget until further actions were taken that they said was necessary to balance the budget.  Perata recessed the State Senate and declined to call them back in session until another Senate Republican committed to supporting the budget.  As of August 9, there has been no action in the State Senate since then. 

GOVERNOR

* Met with Senate leaders in late July - and with Senate Republicans on August 1, urging passage and pledging to line item veto over $700 million from the Assembly version of the budget. 

* Said he would issue an executive order if necessary to keep California protected from forest fires

 

Speaker Núñez Rejects Senate Republican Budget Demands
Assembly Speaker Nunez [pictured left] in a letter to Senate Republican Leader Dick Ackerman (Republican - Tustin) released Wednesday (August 8) flatly rejected any proposals for additional cuts and urged Senate Republicans to pass the budget as approved by the Assembly saying that "...despite strong bipartisan support in the Assembly, along with support of Senate Democrats, the Governor, and even a member of your own caucus, you and other members of your caucus have continued to block enactment...I want to be clear: the Assembly's work on the budget is complete and I will not convene the Assembly until August 20."

 

Nunez said in the letter that "...we made numerous spending and policy concessions to you and your caucus in this budget. The budget makes deep cuts in a number of areas that were not acceptable to Assembly Democrats. But, in the spirit of compromise and an effort to enact a budget, we reluctantly agreed to these cuts. I am now alarmed to hear that the Governor has agreed to veto hundreds of millions of spending to meet your additional demands."

 

The Assembly Speaker said that should the Assembly be forced to vote on the budget again, any change would mean restoring cuts made in July for many programs including transportation and human services.

"Should you continue to labor under the false impression that the return of the Assembly will result in more changes to the budget, you should understand the clear views of the Assembly Democratic Caucus.
First, any change would require restoration of the funding for the five-month delay in the SSI/SSP COLA for the poorest Californians who are aged, blind, or disabled.
Second, any change would require restoration of a substantial portion of the $1.3 billion that was diverted from public transportation to cover General Fund expenditures.
Third, our caucus will not consider any additional cuts to education programs or to the health and human services safety net."

 

Nunez also rejected any discussions to hold up the budget for reforms demanded by Senate Republicans, led by Ackerman (pictured right with fellow Republican Senator George Runner on Wednesday) to address Attorney General Jerry Brown Jr's actions under the California Environmental Quality Protection Act  (CEQA) that they say adversely impact local development.  Nunez said that "... we will not entertain discussions on    reforms to CEQA or any revenue reduction measures as part of the budget. Those issues are clearly outside of this budget and have only been raised at the thirteenth hour to provide cover for your failure to act responsibly".

 

Ackerman did not respond (as of this writing) publicly to Nunez's letter.

 

Perata: “I will not bargain on California’s environment" 
Senate Republicans have called for, as part of any budget deal to get their votes,  a change to the California Environmental Protection Act (CEQA) that would impact how Attorney General Jerry Brown, Jr applies the landmark law to local developers and oil refineries. 
Perata however would have none of it, saying that “If my Republican colleagues need a public reality check, here it is: I will not bargain on California’s environment. There will be no negotiations on CEQA. End of sentence."

 

Meanwhile Sen. Jeff Denham (Republican - Merced), in response to being removed from the Senate Governmental Organization Committee on Wednesday (August 8) said that Perata "...is desperate to get a budget deal and he thinks his latest move to kick me off the Government Organization Committee will make me fold. These scare tactics are only measures to try and pressure my vote. If you want me to vote for a budget, make it balanced and don’t repeal the teacher’s tax credit, for starters.”

 

Denham  added that “...I have worked well with Senator Perata in the past on statewide and district issues such as the Oakland school bailout or the Peterson trial reimbursement money. I look forward to resuming a positive working relationship with him once these budget hostilities have ceased.”

Assembly Republican Leader's  Position on Budget
Assembly Republicans - having worked a budget deal with Assembly Democrats that resulted in their support for the spending plan on July 20th, have largely been silent on the stand-off in the State Senate. 

 

Assembly Republican Leader Assembly Republican Leader Mike Villines (Republican - Fresno) [pictured left] who with Assembly Speaker Nunez crafted the budget deal in the Assembly - the same package that remains stalled on the State Senate floor, had said on July 20th after passage that “working together to do what’s right for our state, [Assembly] Republicans and Democrats today set aside our partisan differences to pass a fiscally-prudent state budget that makes sense for California. Our budget agreement fully funds important budget priorities like education and public safety, provides tax incentives to encourage economic growth, and ensures that infrastructure bond funds will be spent as the people intended.”

Villines added then that "While there is much work that remains to be done to solve our long-term budget problems, this budget agreement takes an important step forward by making significant progress in lowering this year’s operating deficit and reducing the size and severity of future budget deficits. Going forward, we must continue to embrace the philosophy of fiscal responsibility so we can eliminate our budget deficits once and for all.”

 

Villines - responding to Senate Republicans who want the Assembly to return to Sacramento before August 20th to make changes to the budget they passed, said last month that any decision to reconvene the Assembly is up to the Assembly Speaker. 

 

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