CDCAN LOGOCDCAN DISABILITY RIGHTS NEWS REPORT
California Disability Community Action Network
Advocacy Without Borders:  
News Impacting People With Disabilities, Mental Health Needs, Seniors & Others
Goes out to over 45,000 people, organizations, policy makers across California
Marty Omoto -  martyomoto@rcip.com   website:   www.cdcan.us
 Report #030-2008  -  February 12, 2008 - Tuesday evening
 
 
California Budget Crisis
ASSEMBLY & SENATE BUDGET COMMITTEES HEARINGS FEB 13TH
Final Action on Some of the Governor's Proposals Expected
State's Cash Flow Crisis & Budget Deficit
Regular Budget Hearings Likely To Begin In March
Potential Impact to Medi-Cal, SSI/SSP, IHSS, Regional Centers
Impacts To Other Programs Including Adult Protective Services
 
SACRAMENTO  (CDCAN)  - Both the Assembly and Senate budget committees will hold separate hearings Wednesday afternoon, February 13th, to likely take final action on some but not all of the Governor's proposals that call for sweeping cuts in spending to the current 2007-2008 State budget.  Both committees are likely to hold off on most of the Governor's major proposed reductions until the regular budget process with hearings that usually are held from March through early May, with the Governor releasing at that time revisions to his proposed budget (referred to as the "May Revise" or the "May Revision").  Whatever both committees end up deciding would then need approval by the full Assembly and the full Senate, with action there likely either later this week or by the end of next week. 

Though anything could happen, the proposals that the Legislature seems likely to take action on include suspension of the cost of living increase scheduled for June 2008 for persons with disabilities, seniors and the blind who receive SSI/SSP grants (Supplemental Security Income/State Supplemental Payment).  The Governor proposed suspending the increase for the state part of that grant (SSP) scheduled for June 2008 and also June 2009.  The Governor's proposed budget however still would pass through the federal increase for the SSI part of the grant that took effect January 1, 2008 and also the next increase due January 2009. 
The proposal has been strongly opposed by disability, senior, mental health, low income advocates. 
 
Some of the Governor's proposals which the Legislature is expected to take action on deals with addressing the state's cash flow crisis, that  include  proposals to delay making payments to Medi-Cal providers later in the year and other similar measures. That cash flow crisis is different from the budget deficit, and  if not resolved with action by the Legislature, could mean that the State will not be able too pay its bills in the coming months and later in the year. 
The impact of the cash flow crisis on community based providers and organizations that provide critical services and supports would be similar to when the State fails to pass a budget on time and cannot pay its bills after a certain point, as happened last August. 
 
FEBRUARY 13, 2008 (WEDNESDAY)
ASSEMBLY BUDGET COMMITTEE
Time: 1:30 PM
State Capitol - Room 4202
Subject: Special Session bills on budget emergency
Public Testimony: Not likely
 
FEBRUARY 13, 2008 (WEDNESDAY)
SENATE BUDGET & FISCAL REVIEW COMMITTEE
Time: Meets upon adjournment of the Senate Revenue & Taxation Committee meeting (that committee meets at 1:30 PM and has 3 bills to hear, so it will be after that)
State Capitol - Room 4203
Subject: Special session - budget emergency
Public Testimony: Not likely
 
Senate & Assembly Held Hearings From January 22nd  to February 4th - Regular Hearings Begin In March
Both houses held a series of hearings beginning on January 22 through February 4 to hear more detail from the Schwarzenegger Administration and also to hear public comment on the Governor's proposed reductions. 
 
Many disability, mental health and senior advocates attended those hearings, urged law makers to oppose the cuts, with some advocates saying the reductions would mean a reversal in the State's compliance with the landmark 1999 US Supreme Court "Olmstead Decision".  That decision, under the federal Americans with Disabilities Act, requires the states to take steps and measures to avoid the "unjustified institutionalization" of persons with disabilities, mental health needs and seniors. 
 
Hearings by the budget subcommittees for the regular budget process usually begin in March and continue through early May.  Those hearings are meant to hear public comments on various budget proposals. No hearing dates of the subcommittees have yet been announced or released
 
Governor In January Proposed Sweeping Cuts
The Governor in January, besides the proposed elimination of the cost of living increase for the state portion of the SSI/SSP grants due in June 2008 and June 2009 (and to the CAPI or Cash Assistance to Immigrants program) also proposed sweeping proposed cuts, including a proposed permanent 10% rate reduction to most Medi-Cal providers including Adult Day Health Centers, physicians and others, and the permanent elimination of several Medi-Cal optional benefits used by adults with disabilities, seniors and others, including dental, audiology, speech therapy.  
 
The Governor also proposed changes in current State laws that will allow for immediate cuts to certain programs and services effective at the beginning of the 2008-2009 State budget year that begins July 1, 2008 and ends June 30, 2009, including:
* Over $329 million in cuts to regional center funded services for children and adults with developmental disabilities (including autism), a 10% rate reduction for job coaches under the Supported Employment Program, expansion of an existing share of cost program for certain families and covering 3 types of services
* Proposed 18% reduction in non-medical domestic and related service hours for persons who receive In-Home Supportive Services and cuts to county administration of IHSS
* Proposed cuts to mental health services, including to the EPSDT program
* Proposed cuts to the Healthy Families program
* Proposed reductions to Adult Protective Services
* Proposed rate reductions and other cuts to the Foster Care and Adoption Assistance Programs,
* Proposed cuts impacting various services under the Department of Rehabilitation
 
What the Legislature Seems Likely To Do For Now
As reported in last week's CDCAN Report, though anything can happen, the Legislature seems likely to approve some or most of the reductions that are already in place, like the $329 million in cuts (called "cost containment" measures) for the regional centers that were first enacted in 2003 but is likely to wait to further action on most other major new proposals, like the proposed cuts to IHSS or Medi-Cal. 
* The Governor is asking the Legislature to continue those reductions, which are scheduled to expire this year or the end of the 2008-2009 State Budget year, and is also asking that those reductions be made permanent. 
* The Legislature seems also likely to approve cuts they have approved previously in other years almost routinely  - like the suspension of the SSP cost of living increases, in this case, for June 2008. They may hold off on approving the cut to June 2009 until later in the budget process. A similar cut was proposed for the state funded CAPI or Cash Assistance Program for Immigrants program that provides grants to persons with disabilities, seniors and the blind who are legal immigrants but do not qualify for SSI/SSP.
* The Legislature could approve some of the cuts by including language that says it is temporary for one or two budget years, by placing a "sunset" (or ending date) on the reduction, as they have done in previous years to some programs. 
* Legislature also will likely to approve many of the Governor's proposals that deals with the State's growing and critical cash flow problems - a crisis that is different from the budget shortfall.
* The Legislature seems likely hold off taking final action on the other major proposed cuts and reductions until at least the release of the Governor's revisions to his proposed budget in mid-May.  This includes the Governor's proposal to suspend the school funding guarantee under Proposition 98 (passed by voters in 1988). 
* Some of the reasons for holding off action has to do with the need for more information on the impact or the search for other ways to balance the budget or other areas to make reductions. 
* Another reason however has more to do with giving up potential bargaining chips too early in the budget process. If Legislative Democrats approve the major cuts proposed by the Governor, they will have little to bargin with in budget negotiations later in June, and they would be doing so without knowing what other proposals the Governor will make (including the possibility of even bigger proposed cuts) in May when he releases revisions to his proposed budget. 
 
Legislature Faces February 23rd Deadline to Act on Governor's "Fiscal Emergency"
The Legislature faces a deadline of February 23rd to take action and send a bill or bills to the Governor that addresses the State's fiscal (or budget) emergency.  The State Constitution requires that the Legislature send a bill (or bills) to the Governor 45 days after the Governor declares a "fiscal emergency", which he did on January 10. 
 
If the Legislature fails to do so, the Legislature cannot adjourn the special session (except for the day or short periods) or take up other business.  However it is not certain how the process will actually work since the provision in the State Constitution that gives the Governor the special authority to declare a "fiscal emergency" has never been used before. 
 
That amendment to the State Constitution, backed by both Governor Schwarzenegger and the Legislative Democrats and Republicans, was passed by voters as Proposition 58 in March 2004.
 
The Legislature is not required to send a bill that contains any of the cuts that the Governor proposed, but the legislation would have to somehow address the fiscal emergency.  The State Constitution provides no details on what that means however. 
Legislators and legislative staff will continue to receive their pay even if the Legislature fails to act by the 45th day.
 
Other Legislative Deadlines and Dates In February
The Legislature will also be scrambling to meet another important deadline in the coming two weeks - February 22, which is the deadline to introduce new bills. 
 
Feb 18 - State/Federal holiday (President's Day)  - Legislature not in session
Feb 20 - Date when Legislative Analyst Office is expected to release her analysis of the Governor's proposed budget
Feb 22 - Last day for Assembly or Senate to introduce new bills in 2008 session
Feb 23 - Deadline for Legislature to send bill or bills to Governor addressing "fiscal emergency"
 
ASSEMBLY BUDGET COMMITTEE
There are 26 members of the Assembly Budget Committee
Chair:  Assemblymember John Laird (Democrat - Santa Cruz)
Vice Chair: Assemblymember Roger Niello (Republican - Sacramento, 5th District) 
Democratic Members (16 including chair)
Juan Arambula (Democrat - Fresno, 31st District)
Jim Beall (Democrat - San Jose, 24th District)
Patty Berg (Democrat - Eureka, 1st District)
Julia Brownley (Democrat - Santa Monica, 41st District)
Hector De La Torre (Democrat - South Gate, 50th District)
Noreen Evans (Democrat - Santa Rosa, 7th District)
Mike Feuer (Democrat - Los Angeles, 42nd District)
Mary Hayashi (Democrat - Hayward, 18th District) 
Ed Hernandez (Democrat - Baldwin Park, 57th District)
Dave Jones (Democrat - Sacramento, 9th District)
Paul Krekorian (Democrat - Burbank, 43rd District) 
Gene Mullin (Democrat - South San Francisco, 19th DIstrict)
Ira Ruskin (Democrat - Redwood City, 21st District)
Sandre Swanson (Democrat - Oakland, 16th District)
Lois Wolk (Democrat - Davis, 8th District
Republican Members (10 including vice chair):
John Benoit (Republican - Palm Desert, 64th District)
Sam Blakeslee (Republican - San Luis Obispo, 33rd District),  
Paul Cook (Republican - Yucaipa, 65th District)
Chuck DeVore (Republican - Irvine, 70th District)
Mike Duvall (Republican - Brea, 72nd District)
Jean Fuller (Republican - Bakersfield, 32nd District)
Bob Huff (Republican - Diamond Bar - 60th District)
Bill Maze (Republican - Visalia, 34th District)
Jim Silva (Republican - Huntington Beach, 67th District) 
Assembly Budget Committee Office
State Capitol - Room 6026
Sacramento, CA 95814
Budget Office Capitol Phone: (916) 319–2099.
 
SENATE BUDGET & FISCAL REVIEW COMMITTEE
There are 14 members on this committee
Chair: Sen. Denise Ducheny (Democrat - San Diego, 40th District)
Vice Chair: Sen. Dennis Hollingsworth (Republican - Murrieta, 36th District) [could become Senate Republican Leader] 
Democratic Members (9 including chair)
Elaine Alquist (Democrat - Santa Clara, 13th District) [also chair of Subcommittee on Health & Human Services]
Christine Kehoe (Democrat - San Diego, 39th District)
Alan Lowenthal (Democrat - Long Beach, 27th District)
Mike Machado (Democrat - Linden, 5th District)
Alex Padilla (Democrat - Pacoima, 20th District)
Jack Scott (Democrat - Pasadena, 21st District)
Joe Simitian (Democrat - Palo Alto, 11th District)
Darrell Steinberg (Democrat - Sacramento, 6th District) [chosen as new Senate President Pro Tem to take office end of 2008]
Republican Members (5 including vice chair)
Dave Cogdill (Republican - Fresno, 14th District) [another possible candidate for Senate Republican Leader]
Bob Dutton (Republican - Inland Empire, 31st District)
Bob Margett (Republican - Glendora, 29th District)
Mark Wyland.(Republican - Escondido, 38th District)
Staff Director: Daniel Alvarez.
Senate Budget & Fiscal Review Committee Office
State Capitol - Room 5019
Sacramento, CA 95814
Budget Office Phone: (916) 651–4103. Room 5019.
Senate Republican Fiscal Office
1020 N Street - Room 234
Sacramento, CA 95814
Republican Fiscal Office Phone: (916) 651–1501.
 
 
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MANY MANY THANKS to Easter Seals of California, Parents Helping Parents, UCP of Los Angeles and Ventura Counties, Work Training, FSNC, Foothill Autism Alliance, Arc Contra Costa, Pause4Kids, Manteca CAPS, Training Toward Self Reliance, UCP, California NAELA, Californians for Disability Rights, Inc (CDR) including CDR chapters, CHANCE Inc, , Strategies To Empower People (STEP),  Alta California Regional Center, Harbor Regional Center, Tri-Counties Regional Center, 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, adoption assistance program families and children, and others across California