Budget Update
The Governor's January Budget read much like the last one, complete with devastating cuts to health and human services and a "trigger" if more federal funds are not forthcoming. What the Governor has done is continue with last year's budget cycles assault on health and human services. The delivery and timing have been altered, but the essence is the same. The following summarizes the most significant cuts to health and human services. Look for LCHC's complete budget analysis to follow in the coming weeks.
The Governor's Budget:
"You've got to be kidding me?"
-President Pro Tem Darrell Steinberg
The big picture frames a $19.9 billion budget gap. This includes a $6.6 current year shortfall, a $12.3 billion budget year shortfall and a $1 billion reserve. The particulars:
- $6.9 billion deficit projected from the 2009 budget
- $3.4 billion due to revenue decline
- $4.9 billion due to federal and state litigation
- $2.3 due to erosions of previously enacted solutions
- $1.4 due to population and case load growth
- $1 billion to rebuild budget reserve
Spending Reductions to Health and Human Services
Medi-Cal
-$750 million in cuts to Medi-Cal that placing limits on services, higher copays and /or premiums and other programmatic changes. -$118 million cut resulting from the elimination of full scope Medi-Cal for Newly Qualified Immigrants (effective March 1, 2010). This is not including $104 million resulting from the elimination of Adult Day Healthcare benefits, also taking effect March 1, 2010. Another $28.7 million by reducing the rate increase for family planning services, restoring them to 2007 levels.
Healthy Families
$10.5 million cut in 2009 and $63.9 million in 2010-11 by rolling back eligibility to Healthy Families from 250 to 200 percent of the federal poverty level (FPL). -$21 million decrease by eliminating vision benefits and increasing monthly premiums for families between 150 and 200% FPL-- by $14 per child or $42 maximum increase per family with 3 or more children.
In-Home Supportive Services
A reduction of $77.9 million on 2009-10 and $872.6 million in 2010-11 by limiting services to those with the highest level of need, reducing the amount the state contributes to the locally negotiated wages of IHSS workers to the state minimum wage of $8.00 hourly.
CalWORKS
$146 million cut by reducing monthly grant payments by 15.7%, reducing the level at which the state reimburses child care providers and eliminating the Recent Noncitizen Entrants program which provides CalWORKS benefits to legal immigrants in residence for less than five years.
Additional Health and Human Services Cuts
$306.9 million by reducing benefits for recipients of SSI/SSP;
$60 million by eliminating the California Food Assistance Program;
$200 million by reducing support for Regional Centers;
$18 million by eliminating the Substance Abuse Offender Treatment Program.
The Trigger Effect
All of the above cuts are the baseline cuts that will occur with or without an influx of federal funds. In the event that the Governor is unable to procure additional federal funds, the following cuts will occur, some immediately, others will require voter approval.
Medi-Cal
Reduce Medi-Cal eligibility to the minimum allowed under current federal law (about 72% of the Federal Poverty Level for most adults and 133% FPL for children and pregnant women). It would eliminate coverage for 700,000 Californians after January 1, 2011, when ARRA restrictions to these cuts would no longer apply. 250,000 would lose coverage in the first six months. Elimination of many Medi-Cal programs such as the Family PACT program for family planning services, the CHDP Gateway for transitional children's coverage, Breast and Cervical Cancer Treatment Program, and the Medically Indigent long-term care program. Elimination of many of the remaining optional benefits such as those that cover medical necessities like diabetic test strips and prosthetic limbs.
Healthy Families
$126 million in cuts and total elimination.
CalWORKS
$1.044 million in cuts and total elimination.
IHSS
$495 million in cuts and total elimination.
Trigger cuts to other health services
Elimination of Proposition 63 programs (Mental Health Services Act), by shifting the $847 million to fund existing mental health services; Elimination of Proposition 99 funded health services such as Access for Infants and Mothers (AIM), Every Woman Counts, and others.
LCHC will continue to advocate for the needs and services of the Latino community in this year's budget. For more information, please contact LCHC staff.