CDCAN
- DISABILITY RIGHTS NEWS REPORT
California
Disability Community Action Network
Advocacy Without
Borders: One Community
News Impacting People With
Disabilities, Mental Health Needs, Seniors & others, including
Asian Pacific Islanders, Latinos, African Americans communities across
California and beyond - Reports go
out to over 45,000 people with disabilities, seniors, mental health needs
& others, organizations, policy makers across California
REPORT #097-2008 -
MAY 10, 2008 - SATURDAY
STATE BUDGET CRISIS
* BAD NEWS LIKELY WHEN GOVERNOR RELEASES
BUDGET CHANGES
* NEW MAJOR SPENDING CUTS WILL LIKELY HIT
CRITICAL PROGRAMS
* POLICYMAKERS LOOKING FOR PERMANENT CUTS
AND SOLUTIONS
* CDCAN Townhall Telemeeting with Kim
Belshe Set for May 14th 4 PM
ADVOCATES FEAR MAJOR IMPACT ON DISABILITY
RIGHTS AND OLMSTEAD IMPLEMENTATION OF HUNDREDS OF THOUSANDS OF
PEOPLE WITH DISABILITIES, MENTAL HEALTH NEEDS, SENIORS & WORKERS
SACRAMENTO (CDCAN) - Bad budget news will get
worse on Wednesday, May 14, when Gov. Arnold Schwarzenegger will release
budget revisions and changes (referred to as the "May Revise") with policymakers
and advocates fearing that that new massive permanent spending cuts to a
wide range of critical programs are now all but certain to be proposed.
[Note: CDCAN will provide free and to anyone, written and audio
reports as soon as information is available on Wednesday]
With a budget shortfall exploding from $8 billion to over
$16 billion and possibly as high as $20 billion by the end of the 2008-2009
State Budget year, the Governor and Legislature are faced with diminishing
number of choices to close the widening gap.
The crisis differs from previous years because now
legislators and the Governor are now looking for permanent ways to reduce
spending rather than temporary cuts or reductions to programs. The 10% Medi-Cal
rate reduction and regional center reductions called "cost
containment" were all made permanent by the Legislature and Governor in
February (though the Medi-Cal cut is now being contested in court with two
lawsuits filed recently - see CDCAN Report #92-2008 for details).
Advocates Fear Devastating Cuts Impacting Thousands
Advocates and policymakers fear that nearly every program critical for
people with disabilities, mental health needs, seniors, people with MS,
Alzheimer's and other disorders, people with traumatic brain and other
injuries, foster and adoption assistance families, CalWORKS families that
will impact Medi-Cal, adult protective services, aging programs, mental
health programs, services for the blind, services for persons who are deaf,
special education, accessible employment, accessible and affordable
transportation and housing services, and community based organizations and
workers who provide critical services and supports, all who will be hit by
possibly new major spending reductions on top of cuts already proposed or
implemented this year. Word from some Administration officials and
advocates say that the cuts will likely be "major".
Advocates fear that more cuts will have dramatic impact on rights of people
with disabilities, seniors and mental health needs and the State's
implementation of the Olmstead Decision, the 1999 US Supreme Court decision
that required the states to take measures to avoid the unnecessary
institutionalization of people with disabilities, mental health needs and
seniors.
Certain programs, such as Medi-Cal - already hit with an over $1 billion
reduction in reimbursements to community-based providers with a 10%
permanent rate reduction scheduled to go into effect July 1, 2008, are
vulnerable for more cuts. SSP/SSP, regional center funded services
including possible rate reductions to other programs, In-Home Supportive
Services, a wide range of aging programs, all face current and likely new
major cuts.
No official word has come from the Schwarzenegger Administration on any
cuts - though officials over the weeks have warned of major cuts.
CDCAN Townhall Telemeeting Will Feature Kim Belshe
In order for people with disabilities, mental health needs, the blind,
seniors, families, workers, community organizations, the deaf, and
others to learn about the Governor's proposals directly from the top
California official responsible for all of the health and human services
programs, CDCAN has scheduled a special Townhall Telemeeting on May 14,
at 4 PM with Kim Belshe, Secretary of the California Health and Human
Services Agency.
How To Connect to any of the CDCAN Townhall
Telemeetings
Toll free number: 1-800-608-4143 (there is NO
passcode)
OR You Can ALSO access on the web (if you have access
to high speed internet)
Step 2: Enter the Guest login participant code:
68147694
Step 3: Type in your first name and (if you want),
your last name your organization and email address. You
don't have to do that however.
Step 4: Click on the "Log In" button
Step 5: Your computer will flash a security warning -
click "yes" and click on audio stream.
Note: You can ask a question by typing it in
The California Health and Human Services Agency oversees the Departments
of Developmental Services, Social Services, Health Care Services, Aging,
Mental Health, Public Health, Rehabilitation that oversee programs
serving millions of people with disabilities, the bloind, people with
mental health needs, seniors, and others.
Last time Belshe participated in a CDCAN Townhall Telemeeting,
over 500 people participated. Over the years, since the first
CDCAN telemeeting in 2003, including one that featured then Senate
President Pro Tem John Burton, thousands of people have participated
across the State. The townhalls are free and open to anyone and
are held to reach people who lack resources or have health needs and are
unable to come to a physical meeting or to Sacramento.
CDCAN will schedule several townhalls featuring department officials and
advocates for more in-depth updates on the budget and programs, and also
related bills and issues in the coming weeks. [contributions are
needed to continue these Townhall Telemeetings! See below!]
Governor and Legislature Faced With Diminishing Choices
The Governor is expected to propose some new measures to
raise revenues including possibly taxing several services but seems almost
certain not to propose general tax increases that Democrats say is needed to
help bridge the budget shortfall.
Even Democratic leaders in both houses, who fought
many of the major cuts to proposed to health and human service programs,
concede that with a budget gap as large as it is, cuts will be necessary.
However Democratic leaders say that they will refuse to balance the budget
solely with spending cuts, and with a budget gap at over $16 billion and
possibly as high as $20 billion, few policymakers from either party believe
spending cuts alone can fill that gap.
Republican leaders in both houses say that a mixture of
spending cuts, budget reforms and use of special fund money can help bridge
the gap - but strongly oppose any new taxes. Republican votes are
necessary to pass any budget and most observers predict a budget delay that
could last for months.
Budget Delay This Year Could Have More Immediate
Consequences
Democrats, Republicans in the Legislature and the Governor
at odds on how to solve the budget crisis, a long budget fight lasting into
the summer seems certain. However another crisis looms that could make
any budget delay even more devastating than in previous years: the State is
simply running out of cash and without a budget in place, will likely be
unable to pay its bills.
The State's cash situation is worse than in previous years
- while the Legislature took steps to improve the cash flow problem, with no
budget in place by July 1, unlike in previous years, the State will be out of
money, unable to pay its bills much earlier than in previous budget delays.
The impact will likely be more immediate to many
community-based organizations who provide critical services and supports to
thousands of people with disabilities, mental health needs and seniors.
Underscoring the grim news, State Treasurer Bill Lockyer
warned Senate President Pro Tem Perata last week of the State's cash crisis,
and urged the Legislature to pass a budget on time because the State will run
out of money without a budget in place.
Some Major Cuts Approved In February Set to Take
Effect July 1, 2008
Many cuts have already been approved at the Governor's
request, as part of the Legislature's special emergency session in
February. These reductions, which included budget changes and reductions
that total over $7 billion, will take effect either June 1 or in the case
of Medi-Cal, July 1, 2008:
* Effective July 1, 2008, a permanent 10% Medi-Cal provider rate
reduction, including doctors, clinics, pharmacists, Medi-Cal equipment
providers, programs including adult day health and more. Two
lawsuits were filed to block this rate reduction from taking effect -
court hearings on those suits are expected within the next 30 days.
* Elimination, effective June 1, 2008 for at least four months,
the cost of living money due to the lowest income seniors, the blind and
persons with disabilities for the state funded portion (SSP) of the
SSI/SSP grants, and also cost of living money due to persons on CalWORKS
(which includes thousands of parents and children with disabilities or
other special needs)
* Making permanent over $350 million in spending reductions to
regional center funded community-based services to children and adults
with developmental disabilities (including thousands of children and
adults with autism spectrum disorder), effective July 1, 2008 including
expansion of family cost participation, and freezes on several other
programs
Major Cuts Still Waiting Action By the
State Legislature
Many more of the Governor's proposed cuts in made in
January remain to be acted on. This does not include yet any of
the new proposals and cuts that are expected from the Governor next week
when he releases his budget changes and revisions.
The Legislature has held budget subcommittee now on most
of the Governor's proposals - and in some cases, either the Senate or the
Assembly has rejected a few of the proposals - but no action is final.
Action however on nearly all of the major proposed
spending cuts are being held off at least until after the Governor releases
his budget changes on May 14th - with the final round of budget
subcommittees during the week of May 19th, which will be the last
opportunity this year for people to testify. Here are just
some of the major cuts proposed still waiting final action:
* 10% permanent rate reduction to Adult Protective
Services effective July 1, 2008
* 10% permanent rate reduction of the Deaf Access
Program under the Department of Rehabilitation
* Permanent elimination effective July 1, 2008,
of 11 Medi-Cal benefits that the state is not required to provide
(referred to as "optional benefits") for children and adults
(except where noted) with disabilities, mental health needs, seniors and
others on Medi-Cal and not in long term care facilities:
- Chiropractor Services
- Incontinence Creams and Washes
- Acupuncture Services
- Adult Dental Services
- Speech Services
- Audiology Services
- Optometry Services
- Optician
- Optical Laboratory Services
- Podiatry Services
- Psychology Services.
* 10% permanent rate reduction to foster care and
adoption assistance programs that serve thousands of children with
disabilities, special and mental health needs. Thousands of these children
have developmental disabilities effective July 1, 2008
* 10% permanent rate reduction to supported
employment programs that provide critical assistance to persons with
developmental disabilities effective July 1, 2008
* 18% permanent reduction in the non-medical domestic
and related hours of nearly every one of the over 400,000 children and
adults receiving In-Home Supportive Services (IHSS) and impacting over
350,000 workers.
* 10% permanent reduction to the counties for the
administration and oversight of In-Home Supportive Services
* 10% permanent reduction to Department of
Rehabilitation that will mean closure of at least 10 to 15 field
offices
* Over $480 million cut in funding to special
education (included in the over $4.8 billion cut to education) that will
have major impact to over 650,000 students with disabilities and other
special needs in special education.
* 10% permanent reductions in funding to a wide
range of programs under the Department of Aging serving the lowest income
most vulnerable seniors including the Multipurpose Senior Services Program (MSSP),
Linkages Program, Alzheimer's Day Care Resource Centers, Respite, Senior
Nutrition Programs including home delivered meals and brown bag program,
senior companion program, and senior legal hotline.
* 10% permanent rate reduction in rates of
the Community Rehabilitation, Individual Service and Contract providers who
provide critical vocational rehabilitation services to people with
disabilities (under the Department of Rehabilitation)
* 10% permanent reduction in funding of the
Department of Social Services State Hearings division that will mean
elimination of at least 13 hearing officers - that will significantly impact
fair hearings including IHSS, CalWORKS
* 10% cut to Office of Client Rights Advocacy for
230,000 children and adults with developmental disabilities
* Elimination of the cost of living money promised in
State law on June 1, 2009 to the lowest income seniors, the blind and lowest
income persons with disabilities, including those with developmental
disabilities (the federal cost of living money that was January 1, 2008 was
given however, and the federal cost of living money due January 1, 2009 is
also supposed to still be given)
* Major cuts to mental health services including 10%
reduction to community-based services by imposing a prior authorization
requirement on all requests for the Early and Periodic Screening Diagnosis
and Treatment (EPSDT) program day treatment services that exceed 6 months;
eliminate annual cost of living adjustment to provider rates and reduce
non-inpatient provider rates by 5%.
* Permanent 10% reduction to the Early Mental Health
Initiative Program that provides mental health intervention and prevention
services for children with mental health and other special needs in schools
(Kindergarten through grade 3). Also reduce mental health managed care
provider rates due to elimination of annual cost of living and other rate
reductions.
* Major reduction to Community Care Licensing that
would reduce the current 30% random inspection protocol to 14% of facilities
and reduce about 100 related staff positions (state and local) over the next
two years
* Delays in payments to Medi-Cal providers on top of
rate reductions
NEXT STEPS
GOVERNOR
* Governor will release his budget changes sometime likely
after 11 AM. (CDCAN will issue a full report immediately)
LEGISLATURE
* Will hold final round of budget subcommittee hearings to
consider final action on the Governor's previous proposals made in January -
and hear testimony and take action on his new proposals.
* Hearings will start the week of May 19th and
possibly continue the week of May 26th. (CDCAN will issue report when
schedule becomes available. Some hearing dates are set - but subjects have
been assigned yet to those dates.
* This is the last opportunity for this budget year for
people to testify.
URGENT!!!
YOUR CONTRIBUTIONS NEEDED!!
Townhall Telemeetings, reports and alerts
and other activities cannot continue without your help!
Advocacy Without
Borders - ONE Community:
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 townhall telemeetings, 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 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
Note: the paypal option on the CDCAN website is temporarily
not working and will be fixed soon.
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 MANY THANKS to Alta California Regional Center, FEAT (Families for
Early Autism Treatment), Friends of Children with Special Needs, Life Steps,
Easter Seals California, Parents Helping Parents, UCP of Los Angeles and
Ventura Counties, Work Training, 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), 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