Democratic Budget Goes to Vote Today

The tax increases fall far short of the nearly $12 billion in new taxes (including restoring previous taxes) that some advocates have pushed for.

The Governor’s revised budget plan in May included no new tax increases.

Major Spending Cuts in Democratic Plan About $5 Billion Less Than Governor’s

The Democratic plan however also includes major permanent spending cuts – though about $5 billion less than what the Governor proposed – to In-Home Supportive Services, SSI/SSP, regional centers, Medi-Cal, mental health, CalWORKS, foster and adoption assistance, community care licensing.

The Democratic plan rejected the Governor’s proposals to totally eliminate several programs including Healthy Families, CalWORKS, Adult Day Health Care, Multipurpose Senior Services Program, several senior community based programs, Cash Assistance Program for Immigrants (CAPI) and narrow eligibility and services that would have meant over 360,000 of the estimated 400,000 people with disabilities, the blind and seniors receiving In-Home Supportive Services would lose all or some of their services. The Governor also proposed in May another permanent cut to the SSI/SSP (Supplemental Security Income/State Supplemental Payment) grants to persons with disabilities, the blind and seniors to the lowest level allowed by the federal government – which the Legislature partially rejected.

The Democratic revised budget plan while rejecting the more massive cut to In-Home Supportive Services (IHSS), it still puts in place a proposal that would narrow eligibility and reduce services for about 40,000 people with disabilities, mental health needs and seniors; agrees to the Governor’s further reduction of the SSI/SSP grant for couples, and makes major cuts (instead of program elimination proposed by the Governor) to Adult Day Health Centers, CalWORKS, Healthy Families and senior programs.

In addition both the Governor’s and the Democratic plan are identical in terms of the permanent cuts to developmental services - including regional centers that provide services and supports to over 240,000 children and adults with developmental disabilities. Those cuts total nearly $400 million in state spending for regional centers (and some reductions to developmental centers) during the 2009-2010 State Budget year, including the continuation of a 3% provider payment cut to most regional center providers, and continuation of a 3% cut to regional enter operations.

Both houses have to pass – with approval by the Governor, however, the details of how the regional center cuts will be achieved.
The Department of Developmental Services indicated that due to the fact that the Legislature and Governor have not yet passed and approved a revised budget plan, including budget trailer bill language dealing with 15 different proposals to achieve at least $100 million in reductions during the 2009-2010 State budget year that begins July 1, the implementation date for the new mandatory closure days for several regional center funded programs (known as the “uniform holiday schedule”) will be moved from July 1, 2009 to August 1, 2009.

Democrats and Republicans Differ Sharply on Taxes

Legislative Republicans and opponents of tax increases, say raising taxes – after raising taxes in February – would cause more harm to the state’s economy and sharper drops in future state revenues. The Governor – who did propose and support temporary tax increases that were part of the 2009-2010 State Budget passed in February, has vowed to veto any bill that includes any further increases.

Legislative Democrats and many advocates for increased revenues including taxes say that the budget shortfall of such immense size cannot be solved or closed by spending cuts only – and that certain businesses in the state have not paid their fair share.

Some disability and senior advocates say that even higher revenue increases are needed to avoid larger cuts to health and human service programs. Others say that increased revenues through a combination of increased taxes and increased federal funding is needed to balance any budget plan.

Cash Flow Crisis Overshadows Budget Deficit

The stalemate if it continues past July 1 has dire consequences for the State, with California facing the prospect of soon running out of cash to pay its bills – including money owed on bonds and loans.

Unlike in previous budget stand-offs, when the State was not able to pay many of its bills because there was no budget in place, this year there is a budget is in place (passed four months early in February) but it is out of balance by over $24 billion and the State, due to sharply declining revenues, will not have the cash on hand to pay its bills by late July.

Normally in a situation like this the State can easily borrow the needed funds through short term loans. But this year, with the budget so out of balance, the State will not be able to borrow unless there is a revised budget plan in place that addresses the deficit. The Governor closed off the possibility for the State – through State Controller John Chiang – from securing short term loans at extremely interest rates – in the event there is no revised budget plan in place by early July. By removing the authority to do that.

Protest by People With Disabilities, Seniors & Others Mark Olmstead Anniversary

Meanwhile, disability, mental health and senior advocates launched more protests yesterday and today at the State Capitol, Los Angeles, San Francisco and San Diego and other locations, on the 10th anniversary of the landmark US Supreme Court “Olmstead Decision”.

That historic case filed under the federal “Americans with Disabilities Act” (ADA), involved two women with developmental and other disabilities – Elaine Wilson (now deceased) and Lois Curtis of Georgia who filed a lawsuit against then Georgia state commissioner o f Human Resources Tommy Olmstead (Lois Curtis appeared May 27th at the Disability Capitol Action Day at the State Capitol).

In June 1999 the US Supreme Court ruled that states must take steps to avoid the unnecessary or unjustified institutionalization of persons with disabilities and seniors.

About 75 to 100 persons with disabilities, mental health needs and seniors – including several in wheelchairs, chanting loudly, nearly blocked the entrance and hallway to the Governor’s offices in the State Capitol on Monday for nearly 2 hours, protesting the proposed budget reductions – and also reductions passed in February that will go into effect July 1, and demanded to meet inside the Governor’s offices.

A spokesperson for the Governor came out – and later, four persons were invited inside the Governor’s conference room area to talk with his representative on health and human services issues, Jennifer Kent. The four advocates – Ana Acton, director of the independent living center in Grass Valley, Frank Smith of Chico, Shelly Anderson from the Northern California area, Russell Rawlings and Ellen Reigel, both from Sacramento, came out of the Governor’s office with cheers from the crowd, though they reported no change in the Governor’s position on the budget.

The crowd left chanting “we’ll be back”.

A larger crowd – estimated between 700 to 1,000 or more persons marched from the Los Angeles county building to the Ronald Reagan State Office building where the Governor’s Los Angeles office is located (along with Assembly Speaker Karen Bass’s office) early Monday evening and held a rally outside the building.

Similar protests were held Tuesday (June 23) in San Diego, and San Francisco and other locations.

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.