California’s budget situation is growing worse with the budget deficit now projected at over $24 billion. Yesterday, on May 26th, Governor Schwarzenegger proposed over $5.5 billion in new massive, permanent spending cuts – all in addition to the cuts he proposed on May 14th. He will also propose over $3 billion additional cuts on Friday, May 29th. No action on the Governor’s proposals are expected until at least mid June.
Legislative analysts have said that even if California adopted all of the Governor’s proposed cuts, the budget deficit for the 2010-2011 State Budget year would still be over $15 billion.
Included in yesterday’s proposed reductions is the proposed elimination of the state’s welfare to work program, CalWORKS, that serves over 500,000 people, including many with special needs, and critical senior programs. The Governor also proposed elimination of several essential community-based senior programs under the Department of Aging including the Multipurpose Senior Services Program (MSSP).
The Governor also proposed the elimination of the Healthy Families program, which provides with matching State Children’s Health Insurance Program (SCHIP) federal funds, health insurance for over 900,000 children from low income families
Also proposed are even deeper cuts to Medi-Cal to slow the growing use of services, eliminate certain Medi-Cal state funded only programs, and cut state funds for the Community Care Licensing program. See below for details.
The non-partisan Legislative Analyst Office (LAO), who works directly for the Legislature and provides analysis, recommendations and review of budget issues, estimates that if California’s budget shortfall and cash flow crisis is not resolved soon, the State may not be able to pay its bills after July 1st.
Below is a summary of several of the Governor’s additional cuts proposed on May 26th. This summary is edited from the California Disability Community Action Netork’s (CDCAN) latest alert.
Summary of Governor’s Proposed Cuts as of 5/26/09
Multipurpose Senior Services Program (MSSP) – ELIMINATE
Proposed elimination of the Multipurpose Senior Services Program and senior Community-Based Services programs. Funding for Adult Day Health Care would continue in support of the California Department of Aging’s responsibility for Medi-Cal certification of providers.
- 2009-2010 State Budget Year: $24.2 million cut (state general funds)
- 2010-2011 State Budget Year: $35.3 million cut (state general funds)
Mental Health Managed Care Services and Early Periodic Screening, Diagnosis and Treatment Services (EPSDT) – REDUCE FUNDING
Proposes to reduce funding for these services but would retain funding for Mental Health Managed Care services for acute inpatient services and prescription drugs for Medi-Cal enrollees only. EPSDT reduction would result from eliminating State general fund money for county programs identified as new programs in 2007-2008 and 2008-2009.
- 2009-2010 State Budget Year: $92 million cut (state general funds)
- 2010-2011 State Budget Year: $92 million cut (state general funds)
Medi-Cal – ADDITIONAL $250 MILLION CUT
The Governor has proposed an additional cut of $250 million to the Medi-Cal program, adding to the already $750 million of cuts proposed in the May 14th budget. This means a total of $1 billion in unspecified cuts to Medi-Cal, through a negotiation with the federal government to cut eligibility. If approved, these cuts could deny coverage to nearly 1 million California children, parents, seniors and people with disabilities.
Medi-Cal – ELIMINATE Certain State Only Programs
Proposes to eliminate certain “state-only” programs that don’t get federal funds, thus denying coverage to specific populations for breast and cervical cancer treatment, postpartum care, dialysis, and non-digestive nutrition.
- 2009-2010 State Budget year: $34.4 million cut (state general funds)
- 2010-2011 State Budget year: $57.8 million cut (state general funds)
Medi-Cal – SUSPEND Skilled Nursing Facility Costs of Living Increase
Proposes to suspend an estimated 5% cost of living increase effective August 1, 2009 for skilled nursing facilities.
- 2009-2010 State Budget year: $67.1 million cut (state general funds)
- 2010-2011 State Budget year: $109.8 million cut (state general funds)
Community Care Licensing – ELIMINATE STATE FUNDING
Proposes to eliminate state funding for the Community Care Licensing program. According to the Governor, the reduction would be off-set by a fee increase to maintain “critical health and safety standards.”
- 2009-2010 State Budget Year: $19.5 million cut (state general funds)
- 2010-2011 State Budget Year: $39 million cut (state general funds)
AIDS Drug Assistance Program – REDUCE FUNDING
Proposes to reduce funding for the AIDS Drug Assistance Program (ADAP) and for other Office of AIDS programs. Specific proposals include: expanding client cost-sharing and limiting the formulary in the AIDS Drug Assistance Program; reducing and eliminating other HIV/AIDS programs such as HIV Counseling and Testing, Epidemiologic Studies/Surveillance, Therapeutic Monitoring Program, and Home and Community-Based Care.
- 2009-2010 State Budget Year: $55.5 million cut (state general funds)
- 2010-2011 State Budget Year: $58.9 million cut (state general funds)
CALWORKS Program – ELIMINATE
Proposes to eliminate California’s “welfare to work” program formally called the California Work Opportunity and Responsibility to Kids program, that includes thousands of children and parents with special needs. Program serves over 500,000 people.
- 2009-2010 State Budget Year: $1.31 billion cut (state general funds)
- 2010-2011 State Budget Year: $1.77 billion cut (state general funds)
Healthy Families Program – ELIMINATE
Proposes to eliminate funding for this program and assumes that the program phases out “as quickly as possible” after providing notice to those persons in the program. Program serves over 900,000 children.
- 2009-2010 State Budget Year: $247.8 million cut (state general funds)
- 2010-2011 State Budget Year: $322.4 million cut (state general funds)
Community Clinic Programs — ELIMINATE FUNDING
Proposes to eliminate state funding for Indian Health, Seasonal and Agricultural and Migratory Workers, Rural Health Services Development, and Expanded Access to Primary Care (EAPC).
- 2009-2010 State Budget Year: $34.2 million cut (state general funds)
- 2010-2011 State Budget Year: $34.2 million cut (state general funds)
Submit Your Comments!
For the first time, the Budget Conference Committee is receiving public comments on these proposals. If you’re not able to come to a hearing in person, submit your written comments to:
Assemblymember Noreen Evans, Chair
Assembly Budget Committee – Budget Conference Committee
State Capitol
Sacramento, CA 95814
Be sure to include your complete name and address. Also send a copy to the vice chair of the Budget Conference Committee, Senator Denise Ducheny (she is also the chair of the Senate Budget and Fiscal Review Committee).
Sen, Denise Ducheny, Chair
Senate Budget and Fiscal Review Committee
State Capitol
Sacramento, CA 95814
