Initial Analysis of the Budget Passed by the California State Assembly

Major Reductions or Budget Issues:

SSI/SSP and CalWORKS Cost of Living Increases

* Democrats reversed themselves from their previous action in April that fully funded the cost of living increase scheduled for January 1, 2008 for the State funded portion of the SSI/SSP (Supplemental Security Income/State Supplemental Payment) as proposed originally by the Governor, and now will suspend that cost of living increase for four or five months, (beginning January 2008). The suspension will mean a reduction of $123 million and shifting those funds instead to the state general fund.

* The combined suspension of the cost of living increases for SSP and CalWORKS means a total reduction of $247 million (or savings to the State General Fund)

* Disability, senior and mental health advocates and others expressed dismay, calling it a major reduction against a vulnerable population.

Public Transportation Funding

* Democrats reversed their previous June action in conference committee that restored a large portion of the public transportation funding that the Governor proposed to shift and agreed to the Governor's proposal to shift $1.257 billion in public transportation funding - some of it a one time shift to the State General fund.

* Public transit advocates strongly opposed the Governor's earlier proposal. Public transit, disabillity and senior advocates and others expressed anger and concern about the reversal.

Drug Treatment Funds

* Democrats agreed to reduction of $40 million in Proposition 36 funding for drug treatments.

K-12 Education Funding

* Democrats resisted cuts to K-12 education base funding but did ragree to reduce the funding to education by $427 million that Republicans say was above the level of funding guaranteed by the 1988 voter approved Proposition 98.

Adoption Assistance Program (AAP)

* Though not a major budget issue - and not an issue that caused the delay in a budget deal, the issue has drawn attention in recent weeks with editorials in the Los Angeles Times and San Francisco Chronicle opposing the Governor's plan (as released in May) calling for changes in funding, including caps for families who adopt children with developmental disabilities.

* At the time of this writing of this Report (4:30 AM), details of what was included in the budget related legislation impacting the Adoption Assistance Program were not yet available.

* The details are in SB 84, the Human Services Trailer Bill, as amended on the Assembly Floor, July 19 and approved the early morning of July 20th.

* The issue impacts over 5,000 children with developmental disabilities and their families, two different state departments (Department of Developmental Services and Department of Social Services which oversee the program), 21 regional centers who are contracted by the Department of Developmental Services to oversee and fund community-based services for children and adults with developmental disabilities, and county welfare or social service departments who are responsible for other or general adoption related issues. See separate CDCAN report for more details as information becomes available - and also CDCAN special teleconference forum on this issue.

SUMMARY OF VOTES ON BUDGET BILL AND RELATED BILLS

All bills were amended on the Assembly Floor Thursday evening (July 19) with final votes taken just before 4:00 AM, Friday morning (July 20). Budget related bills or trailer bills contain specific provisions and language that implement changes. In most cases the most recent versions of these bills - all which were amended on the Assembly Floor Thursday evening (July 19) - will not be available on the legislative information system site probably for another day or so.

SB 77 (Main Budget Bill)
Passed by vote of 56-23 (2 more than needed).

Budget related bills (trailer bills)
SB 78 - Education Related Trailer Bill
Passed Assembly 59-20

SB 79 - Transportation Trailer Bill
Includes provisions to make reductions of $621 million in the State budget year, and another $500 in on-going reductions.
Passed Assembly 63-15

SB 80 - Annual omnibus Education Trailer Bill.
Includes increasing nutritional standards for school meals.
Passed Assembly 71-5

SB 81 - Public Safety Trailer Bill
Includes Juvenile justice reform package and notification reporting requirements of AB 900 and ensures funding for prison infrastructure under AB 900.
Passed Assembly 73-4

SB 82 - Judicial Branch and Department of Justice Trailer Bill
Includes setting up public-private partnership for construction of new court facilities
Passed Assembly 71-7

SB 84 - Human Services Trailer Bill
* Requirement of options to improve CalWork to increase work participation
* Provides 5R% rate increase for foster family group homes
* Suspends CalWORKS COLA and suspends SSP COLA for cost savings $247 million
* Includes (reportedly) changes to Adoption Assistance Program
Passed Assembly 65-10

SB 85 Resources Trailer Bill
Passed Assembly 61-17

SB 86 - General Government
Passed Assembly 55-22

SB 87 - Revenue and Taxation
Includes repeal teacher retention tax credit as requested in the Governor's budget
Passed Assembly 54-21

SB 88 - Proposition 1B
Passed Assembly 74-3

SB 89 Ed Fund - Part 2 Trailer Bill
Passed Assembly 74-3

SB 90 - State Government Trailer Bill
Passed Assembly 66-9

SB 91 - Ed Fund (second part) Trailer Bill
Passed Assembly 74-3

SB 92 - Charter Schools Trailer Bill
Note: This was only bill that Republican leaders in the Assembly recommended a "no" vote. The bill doesn't require a super majority to pass however.
Passed Assembly 46-31 (Assemblymember Laird moved for reconsideration)

SB 93 - Health Trailer Bill
* includes extension of facility based nursing home rate methodology for 2008-09 along with Quality Assurance Fee
* Requirements for managed care rates
* provides for protocols for consumers leaving Agnews Developmental Center
* includes administration on how to respond to programmatic early periodic training program
Passed Assembly 55-23 [note: not sure about this vote]

SB 98 - Taxation and Revenue
Includes tax credits that impacts 4 different sectors of the economy, which, Assemblymember Keene says, can bring in a potential of $100 million in new revenues. This is one of the more controversial trailer bills for some advocates given the tax credits.
Passed Assembly 51-19

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.