State Budget Passed, Workers' Comp Procedures, the Housing Rights Center, and more!

On February 20th, after months of legislative debate and stalemate, Governor Schwarzenegger signed into law several bills passed by the State Senate and Assembly that will implement mid-year changes to the current state budget and establish a new budget for fiscal year 2009-2010. This will close a projected $42 billion deficit by increasing revenues by $14 billion, implementing $15.1 billion in cuts to state-sponsored programs, and borrowing $11 billion.

The governor had originally included several cuts to In-Home Supportive Services (IHSS), Medi-Cal, and SSI/SSP payments as part of both his proposed mid-year budget cuts and his proposed budget for fiscal year 2009-2010. Below is a breakdown of the proposed cuts and the actions taken in the final budget:

The elimination of domestic and related service hours for approximately 83,000 IHSS consumers who have a functional ranking of less than 4 for those services. This proposal was rejected by the legislature and was not included in the final budget.
The elimination of the state's share of cost (SOC) buyout program, which would make over 7,000 IHSS consumers responsible for paying the difference between their IHSS share of cost and their Medi-Cal share of cost. Although this proposal was included in the final budget, the program will not be eliminated if a sufficient level of funding comes to the state from the federal economic stimulus bill signed by President Obama in early February. It is believed that the state will receive the needed funding. However, this will not be made official until the Legislature is notified by the Department of Finance in April.
The reduction of state participation in IHSS worker wages to the minimum wage of $8.00/hour. This proposal was included in the final budget, but was amended to reduce state participation in wages to $9.50/hour (plus up to $0.60/hour for worker benefits). However, state participation in wages will not be reduced if a sufficient level of funding comes to the state from the federal economic stimulus bill.
The elimination of optional benefits under the Medi-Cal Program including coverage for dental care, optometry, podiatry, incontinence creams and washes, etc. Although this proposal was included in the final budget, optional benefits will not be eliminated if a sufficient level of funding comes to the state from the federal economic stimulus bill.
The permanent elimination of the Cash Assistance Program for Immigrants (CAPI), which provides assistance to certain legal immigrants who are seniors or persons with disabilities who have been denied SSI benefits because of their immigration status (i.e., those who have been in the U.S. for five years or less). This proposal was rejected by the legislature and was not included in the final budget.
A reduction in the state portion of the State Supplementary Payment (SSP). This would cause individuals on SSI/SSP to see a reduction in the monthly payment that they receive. The final budget includes the suspension of the June 2010 cost of living adjustment for the SSP portion of SSI/SSP payments. The budget also includes a reduction in the SSI portion of payments to levels set prior to December 2008, effective May 1st. In addition, the budget includes a proposal to cut the overall SSI/SSP payment rate by 2.3% (on top of the above reductions). However, this last cut will not be implemented if a sufficient level of funding comes to the state from the federal economic stimulus bill.

The new state budget also reduces funding for several other state-sponsored programs and services, including CalWORKs, Adult Day Health Care Centers, the Emergency Medical Services Authority, the Genetically Handicapped Persons Program (pending additional changes to state law), and the Senior Citizens' Property Tax Deferral Program. Other provisions in the budget will significantly reduce funding for education and for Regional Centers, which provide services for individuals with developmental disabilities. In addition, the budget seeks to increase state revenues by 1) increasing state sales tax by 1%, 2) increasing vehicle license fees to 1.15% of the vehicle's value, and 3) increasing personal income tax by .25%. These increases could add financial strain to many individuals who receive and provide IHSS.

Although the new state budget will be in effect until June 2010, there are still many issues on the table that could impact IHSS and other services for seniors and persons with disabilities. The budget relies on funding that must be obtained from the federal economic stimulus bill and from a borrowing plan that must be approved by California voters in a special election on May 19th. It has been stated that if sufficient funds are not made available from these sources, additional program cuts may have to be implemented later in the year.

A community conference call regarding the new state budget will be held on Friday, March 6th, from 11 AM to 12 Noon. The call, which is sponsored by the L.A. County Long Term Healthcare Coalition, will feature Scott Graves, Senior Policy Analyst from the California Budget Project. Mr. Graves will be discussing the new state budget, the overall budget process, and the ballot measures that will be voted on during the May 19th election. To participate in the conference call, dial 800-640-0097 at 11 AM on March 6th. The call is open to anyone who wishes to participate.

In addition, information on the May 19th ballot measures and their potential impact on the senior and disability communities will appear in future editions of PASC E- News. To subscribe to PASC E-News, click here.