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California State Budget Crisis: Many Programs and Services Won't Be Paid, Including Those for Seniors, Children and Adults With Disabilities

Governor "concerned" about budget stalemate

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By Marty D. Omoto
Director/Organizer
California Disability Community Action Network

With the State Senate scheduled to meet today to consider ways to pass the state budget - now 25 days late - California now is just days away from 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.

While advocates are urging people not to panic, they are also raising major concerns. [For more information about the budget, and about the Senate Republican proposals, including a copy of the proposal and graph, see CDCAN website.]

The budget delay itself could be, within days begin to have 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.

Advocates are raising alerts on this issue, with one, representing and association of providers serving low income seniors wondering why the mainstream media has failed to cover that aspect of the budget crisis.

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 and 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, Alzheimers 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.

CDCAN will issue a separate report on further information from the State Controller John Chiang - the independently elected state official responsible for authorizing payments by the State, and also any other information from various departments and organizations.

Governor Says He Is "Concerned" and Hopes for Budget Deal Thursday

In response to the growing impact of the state budget crisis, Governor Schwarzenegger said that "...I'm concerned, because what I don't want to have happen is that people start not getting paid in California." He added that "I think the time has come now to solve this problem and to come to an agreement. And I hope that by tomorrow the Senate will have a budget deal and we'll pass the budget..."

NEXT STEPS

ASSEMBLY

The Assembly passed SB 77 containing the state budget and also several budget related (trailer) bills on July 19 and 20th, and then adjourned for four weeks for their summer recess, leaving town. This also included legislative language making changes - some controversial - regarding the Adoption Assistance Program dealing with children with developmental disabilities. The program is overseen by the Department of Social Services and when dealing with children with developmental disabilities, the Department of Developmental Services. For copies of all the budget bills, see CDCAN website.

The passage of the budget bill by the Assembly and their departure for recess limited what the State Senate can do - because any change would require that the Assembly return to approve it before the budget could go to the Governor.

Assembly Speaker Fabian Nunez (Democrat - Los Angeles) said that would not happen "under any circumstances". Assembly is scheduled as of this moment, to return to the Capitol on August 20th.

STATE SENATE

The Senate met Friday July 20 in a grueling nearly 24 hour session, but with all 15 Republicans refusing to vote for the budget or abstaining, Democrats were fell 2 votes short of passage.

Senate President Pro Tem Don Perata (Democrat - Oakland) requested that Senate Republicans come up with their ideas by Wednesday (July 25) in order to win their support for a budget. In a letter to the Senate Republican Leader Dick Ackerman (Republican - Tustin), Perata said that the Senate will not take up the Republican proposed additional budget cuts unless all 15 Republican senators vote for the budget bill. If there are not 15 votes, Perata will take no further action on the Republican proposal.

The Senate met briefly yesterday morning for 30 minutes to receive officially the Republican proposals that call for over $842 million in new additional cuts and savings for the current budget year (that began July 1), and additional new cuts and savings of $693 million for the budget year that begins July 1, 2008.

The Senate could simply decide to agree on legislative language committing the budget committees or some other body to take a serious look at cutting growth in spending in some programs without actually committing to do so as a means to win two Republican votes for the budget. A similar approach was used several years ago in the Assembly and language similar to that appears in SB 83 regarding regional centers, as passed by the Assembly as one of the budget related (trailer) bills.

The California Disability Community Action Network, is a non-partisan link to thousands of Californians with developmental and other disabilities, people with traumatic brain injuries, the Blind, the Deaf, their families, community organizations and providers, direct care, homecare and other workers, and other advocates to provide information on state (and eventually federal), local public policy issues.

Posted on July 26, 2007

Comments

My concern is a simple one...if (and when) we finally get a signable budget, will there be a 'Renter's Assistence' check forthcoming?!

Thanx...

Posted by: bill johnson at July 26, 2007 12:32 PM

The budget impasse has left me starving, and with no money. I am a disabled woman who has studied hard to be a K-8 school teacher and who earned my BA and was accepted to grad school. I could have been subsituting all summer at $105.00 a day, but because of the budget delays, rehab can't pay for my emergancy credutial, nor my fingerprints so here I sit, starving, in what should have finally been the best ( money wise) summer of my life. I have to go to orientation at my new college next weekend ( aug 4th) which is 250 miles from my home, but because of the budget hold up the money for traveling there and for a hotel is not happening. If I use my rent money to go to orientation, I could lose my apartment and then I will be a homeless sub teacher which will cannot work because where can I sleep legally? No where in this county. Please stop squabbling and know you are hurting people. Recall your elected offical if it is their fault the budget is not passed.

Posted by: Kelly Ann Pritchard at July 26, 2007 02:45 PM

THIS BUDGET IMPASS IS CAUSING HAVOC ON MY LIFE ! I AM A SMALL BUISNESS OWNER . I PROVIDE CHILD CARE TO 14 CHILDREN 10 OF THEM ARE SUBSIDISED THROUGH THE STATE. ALL OF THEM HAVE WORKING LOW INCOME PARENTS WHO ARE JUST GETTING BY. I STILL HAVE NOT BEEN PAID FOR THE MONTH JUNE AND I HAVE EXAUSTED ALL MY OPTIONS . SO NEXT WEEK THE PARENTS I PROVIDE CARE FOR WILL NOT HAVE ANY CHILD CARE . SIMPLY MISSING EVEN ONE DAY OF WORK SERIOUSLY IMPACTS THESE FAMILS LET ALONE A WEEK OR LONGER ! PLEASE CONTACT YOUR ELECTED OFFICIALS AND ASK THEM TO GET THIS DONE YESTERDAY!

Posted by: RENEE at July 26, 2007 07:51 PM

I am right there with Rene. I am also a Childcare Provider that has not gotten paid for the month of June. Will I be paid for July or will I have to wait around until they get off there butts and get it together. This budget needs to be passed. Something has to be done to get things moving.

Posted by: Amy T at July 27, 2007 01:43 PM

Yep, I'm in the same boat as Amy & Renee. They paid us 50% for June and promised the balance and subsequent payments after the budget is resolved. I will continue serving my clients as long as I can, but not indefinitely. All of my clients were formerly on Aid and now are self supporting with decent paying jobs....as long as they have safe, reliable childcare. If this budget battle continues for long they might want to increase UI and AFDC budgets.

Posted by: Same Boat at July 27, 2007 02:44 PM

I am the director of a subsidized child care program for high-risk infants and toddlers in the North Bay. Unlike Renee, Amy and "Same Boat" we have been able to reimburse our contracted child care providers for June. But the line of credit at the local bank won't hold out forever! When the money runs out, so do the payments to providers, as well as our landlord, the phone company, etc. - and then we're out of business. Funny, but creditors expect to be paid! It's time for the state to step up and pay it's contracts - as promised - whether or not there is a signed budget. We're here doing our jobs for the citizens of the state - it's time they did there's!

Posted by: Cindy at July 27, 2007 03:34 PM

The budget impass is greatly impacting the health of many of the children in the state. I have been in business for 1 year and provide dentistry to underserved children under general anesthesia. The states failure to adequately reimburse for the procedures on these children has become detrimental to the surgery center. Any further delay in the budget could force closure of the surgery center and leave 300 children per month without care. What the state has paid over the last month does not cover the payroll, much less overhead costs. This budget must be passed immediately.

Posted by: Vickie at July 28, 2007 02:56 PM

The budget impass is greatly impacting the health of many of the children in the state. I have been in business for 1 year and provide dentistry to underserved children under general anesthesia. The states failure to adequately reimburse for the procedures on these children has become detrimental to the surgery center. Any further delay in the budget could force closure of the surgery center and leave 300 children per month without care. What the state has paid over the last month does not cover the payroll, much less overhead costs. This budget must be passed immediately.

Posted by: Vickie at July 28, 2007 02:58 PM

I cannot believe the insensitivity of thoes in power who have not considered the poorest of the poor and what will happen to them without a budget. I suppose that the hungry will get hungrier and the homeless will have less places to sleep, and the mentally ill will get fewer services. Where are the hearts of these people in power. We should pray for them and ask them to come and walk in the shoes of these people for 1 day.

Posted by: jball at July 29, 2007 02:02 PM

I am also a day care provider for one little girl. My husband's pay was cut a couple of years ago; he can still cover rent and the bills but food became a luxery. I have Lupus and cannot work outside the home; this money provides the food for my family for the entire month. I received a letter saying that timesheets will be processed for July and checks will be cut as soon as the budget has been signed. I suppose this is also the case for August pay as well if they don't sign.
I really don't think it is fair at all that we who need the money the most and who work so hard for the small amounts that we are paid (illegal wages if you go by the minimum wage laws) are getting shafted based on the politicians inability to compromised reasonably.

Posted by: Esther at July 29, 2007 04:31 PM

I am a residential care provider for 38 developmentally disabled clients. This work has been my passion but with no money I will not be able to fund for their care. I wonder what the people in Sacramento would do with these disabled people if careproviders could not do their job. I am disappointed in the system and astonished at the sheer lack of empathy for our most vulnerable population. I will continue praying that things will be able to be worked out.

Posted by: Maureen De Leon at July 29, 2007 07:43 PM

I am a residential care provider for 38 developmentally disabled clients. This work has been my passion but with no money I will not be able to fund for their care. I wonder what the people in Sacramento would do with these disabled people if careproviders could not do their job. I am disappointed in the system and astonished at the sheer lack of empathy for our most vulnerable population. I will continue praying that things will be able to be worked out.

Posted by: Maureen De Leon at July 29, 2007 07:43 PM

How about sending foster kids back to their families out of state?

What right does California have in imprisoning these kids in disregard for their human rights and wishes to return to their parents from whom they were wrongly ripped away for money to those trafficking in children.

SHAME on California!

http://www.msnusers.com/FreeVincentBooth

"Our safety, our liberty, depends upon preserving the Constitution of the United States as our Fathers made it inviolate. The People of the United States are the rightful masters of both Congress and the Courts, not to overthrow the Constitution, but to overthrow the men who pervert the Constitution."
- Abraham Lincoln


Isaiah 10: Woe to those who make unjust laws, to those who issue oppressive decrees, to deprive the poor of their rights and withhold justice from the oppressed of My people,

"The wicked snatch fatherless children from their mother's breasts, and take a poor man's baby as a pledge before they will loan him any money or grain." Job 24:9

Posted by: Diane Booth at July 31, 2007 07:59 PM

I am disgusted that politicians drank beer & wine (at our expense) on the last fruitless night of the budget session leaving people without compensation for their work. That our 2007-08 budget was left in limbo while they began (the next day) a 4 week paid vacation seems lackadaisical and immoral. The deadline for the budget to be signed is legally June 15th. If not met the session should be extended and paid 'leaves' postponed until business is completed soberly and in the best interests of citizens, educ., health care, mental health, etc. Waste is rampant, i.e. Any state-owned vehicle wrecked by a politician or family member on personal business should NOT be a taxpayer expense. There are others as well. Padding expenses also. Perhaps expenses for alcohol consumption should be restricted from 'perks' and banned from gov. bldgs. and functions - no good action or 'deal' comes from muddled minds. I suspect we should look at our governments reasoning that a few drinks is good for business. EXTREME? Perhaps. I would be fired for drinking on the job, even at a business lunch. Alcohol should never be a reward or necessity in conducting business affecting the welfare of our citizens. Do I hear screams???


Posted by: terri powers at August 2, 2007 03:22 PM

To Bill Johnson: re rent rebate - call 1 800 868 4171 for info about your check. Just found mine had been processed but awaiting budget signature.

Posted by: terri at August 3, 2007 11:59 AM

what are they thinking?! I am also a child care provider of 14 children and will have to stop child care services to working parents. I have no choice, this is my only source of income and due to the budget crisis I will not be able to operate with no money to cover the high expenses it takes to run a family day care.

Posted by: rosie aguirre at August 16, 2007 01:14 PM

We are a DME dealer still providing services such as diapers to individuals. Not getting paid since mid July. We are getting ready to lay off employees. Why should we go out a get a loan to pay for serivces when the legislators have gone on vacation. CUT OFF THEIR PAY
until they approve a budget!!! NO perks.Cut off their expenses, they don't care about us.

Posted by: Sue Fitzsimmons at August 16, 2007 03:02 PM

I hear all of you!! What is with letting them go on vaction with out a signed budget? Would we get to go on vaction if all of our work was not done? I think not. I to care for the disabled and am waiting on money owed to me, I have two small boys I care for. Why do we let them get away with crap like this??? I agree take their pay away until they sign the budget. No they don't care about us they have their big fat pay checks and all their perks so why should they care they have food and bills payed so no they don't care they say well we have ours so lets go on vacation while everyone else is just hanging in the wind....

Posted by: hearing you all at August 16, 2007 10:05 PM

I'm a disabled senior who has been told I have a serious medical condition that can be remidied by eating certain foods and taking vitamins. I cannot afford the food nor the vitamins. I have recently been helping my son go through his applidcatioon for desability through social security, he has sever brain trauma, what will the fallout be from thew cutbacks passed by the new 9007-2008 budget? He needs and mri to establish the damage done after major blows to the head,so the repairs can be made.

Posted by: sharon m at August 26, 2007 03:01 PM

Did anyone notice the 08/25 Frank Russo article re: major mental health cuts, etc. while tax breaks are given for yachts, planes and recreational vehicles?
I still cannot find anything about the 'rent rebates'issuance. Anyone know?

Posted by: terri at August 26, 2007 06:48 PM

Would like to know how I can find out about a renter's credit form that I filled out due to my disability and haven't received anything or any way that I can check on the status of it. Can you or can't you help by pointing me in the right direction.

Posted by: Debbie at October 4, 2007 11:22 AM

This is extremely disappointing. Instead of funds being held back or reduced to continue a war that the majority of Americans are against, they are willing to take from those who really benefit from services. We don't need to take care of other countries. We can help, but the way we are "helping' is not at all the right way. This admnistration has abandoned this country's needs. Our children, seniors, and those with disabilities would benefit so much more if those billions of dollars that are being thrown away elsewhere, were used to create more services for this country, Starting with a better Healthcare system!!!

Posted by: Laura at January 23, 2008 04:12 PM

My wife is a child care giver also we didn't get our July payment . It pays our insurance and some other payments. Whats wrong with You. Don't you care. I hope they stopped your pay to. But I don't think that is the case.

Posted by: Jay at August 30, 2008 09:54 AM

I hope everyone here is also writing their representatives in addition to commenting online.

Posted by: MS at September 10, 2008 04:01 PM

I am a single parent who has had to depend on the reduced child care program to help pay for my child care costs. If this program was not here half if not ALL would go to paying for these child care costs. I thank god, that this program has been made available to single parents like my self. I can't afford to pay the entire amount, but I know something drastic will happen if the budget cuts are in areas like these mentioned. We NEED subsidized child care, People out here NEED Medi- cal and other state issued programs. Where has all OUR tax dollars gone??? To many street and Freeway repairs, and only GOD knows what else. Please help the people, who are depending on our government to make the right decision for once!!!GOD HELP US ALL!!!

Posted by: Sunshine at February 17, 2009 03:27 PM

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