California Senate and Assembly Budget Panels Reject Schwarzenegger Proposed Major Cuts to In-Home Supportive Services--Large Crowds Pack Both Hearing Rooms

The two budget panels on Thursday voted to reject the Governor's proposals that would have lowered the State's contribution to IHSS worker wages to the State minimum wage, eliminated non-medical domestic and related services for IHSS recipients with a functional index score of 1, 2 or 3, and eliminated funding the difference of the Medi-Cal and IHSS share of costs for persons with a function index score of 1, 2 or 3.

The two budget panels however took different actions on the Governor's proposal for a 10% reduction to the counties for the administration of the In-Home Supportive Services program, with the Senate rejecting it completely, and the Assembly subcommittee approving the reduction, with different budget related language.

Sen. Steinberg Says IHSS Cuts "Not Something California Should Be Doing"

In making the motion to reject the Governor's proposal to reduce the State's funding for IHSS worker wages and benefits back to the State minimum wage, Sen. Darrell Steinberg (Democrat - Sacramento, 9th District) and the new incoming Senate President Pro Tem, said "You know, let's just say what this is. I mean, there is no programmatic reform [being] putting forward. I've heard people use words of fraud and abuse - I haven't heard any specific around that. These people [IHSS workers] do God's work here - taking care of people who are shut in, disabled and elderly. To take them down to minimum wage, I just think, this is something that California should not be doing."

CalWORKS Grant Reduction Rejected - Cost of Living Increase Suspension Okayed By Senate

The Senate Budget and Fiscal Review Committee rejected the Governor's May 14th proposal for a 5% permanent reduction to the grants that persons on CalWORKS receive, but did approve to suspend for the rest of the State budget year (from October 1, 2008 to June 30, 2009) the cost of living increase due to CalWORKs recipients.

The Assembly Budget Subcommittee on Health and Human Services will take up the CalWORKs budget issues on Friday, May 30th.

Thousands of children and parents on the CalWORKS program - California's "welfare to work" program, have disabilities or other special needs.

Cash Assistance Program for Immigrants Cut Rejected

Both budget panels rejected, by not hearing or taking any action on the Governor's proposal from May 14th, that called for the permanent elimination, effective August 1, 2008 of the Cash Assistance Program for Immigrants (CAPI) that provides small grants to over 10,000 legal immigrants who have disabilities, who are blind or elderly and do not qualify for SSI/SSP.

Withholding of Federal Cost of Living for SSI Proposal Rejected

Both panels rejected, also by not hearing or taking any action on the Governor's proposal from May 14th that would have eliminated the federal cost of living money owed for the federal (Supplemental Security Income) portion of the SSI/SSP grant due January 1, 2009 through December 31, 2009.

But the Senate Budget Committee did approve to suspend for the rest of the State budget year, the cost of living money owed for the state funded (SSP) portion of the SSI/SSP, from October 1, 2008 through May 31, 2009. The Governor originally proposed in January to suspend the cost of living money owed for the state funded portion of the SSI/SSP grant (SSP), for the entire year beginning June 1, 2008 through May 31, 2009, and June 1, 2009 through May 31, 2010.

The Legislature in February, as part of their special session on the budget, approved a four month suspension of the cost of living, from June 1, 2008 through October 1, 2008.

The Assembly Budget Subcommittee #1 on Health and Human Services did not take up the SSI/SSP budget issue - though may do so on Friday (May 30th).

WHAT THE BUDGET ACTIONS MEAN

No action taken at this or any stage of the budget process is final - until a budget is passed by the Legislature and signed by the Governor. Even then, the Governor can - except where a change in state law is required - line item veto budget items.

When both houses take identical action - either to approve a proposal, or to reject a proposal, that means that it is a significant action at this stage of the budget process, and means that the issue will not go to the budget conference committee for further action.

However, NO action in the budget process is final until a budget is approved and signed by the Governor - especially with a budget shortfall at over $17 billion and growing each time a cut is not approved.

A previously rejected cut or an entirely new proposal calling for spending reductions or other changes could come up in the coming weeks - especially when budget negotiations occur with the Governor and legislative leaders.

BUDGET HEARINGS SCHEDULED

Note: unlike Wednesday and Thursday, when scheduled budget hearings were delayed by several hours, the budget hearings scheduled for May 30th (Friday) should begin pretty much on schedule because neither the full Assembly or Senate is in session.
No further hearings of the Senate Budget Subcommittee #3 on Health, Human Services, Labor and Veteran Affairs are scheduled, though on Senate Budget Subcommittee #2 on Education is scheduled to meet next Wednesday (June 4th), with a final hearing of the full Senate Budget and Fiscal Review Committee scheduled for Thursday, June 5th.

NEXT STEPS IN STATE BUDGET PROCESS

Budget subcommittees (and in some cases the full budget committee) in both houses will hold their final public hearings, and also take public testimony on NEW proposals made by the Governor in his revised budget that he released on May 14th. It is possible now that these hearings could go into next week (week of June 2)

Budget subcommittees in both houses will also likely take final action on many of the Governor's proposals that he made in January. Those items were previously heard in hearings held from January through April - and no further public testimony will be taken on those issues (except in certain specific instances)

JUNE (Week of June 9th)

Budget process then heads to full budget committees, and then to both the Senate and Assembly floors, where they will then refer the Governor's proposed budget to what is called a budget "Conference Committee".

The Conference Committee is composed of 3 members from the Assembly (2 Democrats,and 1 Republican) and 3 members from the State Senate (2 Democrats and 1 Republican) who will hold public hearings to try to come to agreement on any budget issues where the Assembly and Senate took different (or no) actions.

No public testimony is taken at any of the conference committee hearings - though the hearings are televised and open to the public.

JUNE 15TH

State constitutional deadline for the Legislature to pass a budget and send it to the Governor - a deadline that has almost never been kept.

JUNE (MID TO LATE JUNE)

Conference Committee will likely refer its work for final action by both the Assembly and Senate.

Virtually no one believes that the Legislature and Governor will be able to come to agreement on a budget before the end of the 2007-2008 State Budget year or anytime soon after that.

JULY 1ST

Beginning of the 2008-2009 State Budget year.

Within weeks - and by August, many community-based organizations will feel the impact if the budget delay continues through August. For many organizations, the State will not be able to make payments of money owed.

Last year, with the budget stand-off lasting through August 21, many community-based organizations serving people with disabilities, children, seniors and others faced imminent closure - and in some cases, were forced to shut down.

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.