The California State Budget for fiscal year 2009-2010, which was signed into law by Governor Schwarzenegger in February, closed a projected $42 billion deficit by increasing revenues and implementing cuts to several state-sponsored programs, including In-Home Supportive Services (IHSS). Since that time, state revenues have continued to decrease while program expenditures have continued to rise, and the state is once again facing a projected deficit of over $24 billion by the end of the 2009-2010 fiscal year.
Over the last few weeks, the governor has announced several additional cuts to state-sponsored programs, including over $500 million in cuts to IHSS, as part of his proposed revision to the new budget. If his proposals pass, many programs that serve children, seniors, and persons with disabilities will either see significant cuts to funding and services or face complete elimination. Some of the proposed cuts that would directly impact IHSS consumers and providers include the following:
The elimination of all IHSS services for consumers who have a functional index of less than 4. When being assessed for IHSS, applicants are given a functional index score, which is an average measure of their relative dependence on human assistance for performance of basic program tasks. Scores rank from 1 to 6 with 1 representing the least functional limitation and 6 representing the greatest functional limitation. This proposal was released by the governor on May 29th. Details on how many IHSS consumers this would impact are not yet available.
The elimination of domestic and related service hours for IHSS consumers who are not considered to have the highest level of need. Details on which consumers this would affect have not yet been released. However, in previous budget cycles the governor has proposed to eliminate domestic and related services to consumers who have a functional ranking of less than 4 for those categories. (See the
June 2008 edition of PASC E-News for an explanation of functional rankings).
The elimination of the state's share of cost (SOC) buyout program for IHSS consumers who are not considered to have the highest level of need. The buyout program reduces the total SOC for certain IHSS consumers by paying for the difference between their IHSS SOC and their Medi-Cal SOC. Details on which consumers this would affect have not yet been released. As part of the budget passed in February, this program will no longer be available for individuals who apply for IHSS after July 1, 2009.
The reduction of state participation in IHSS worker wages to the minimum wage of $8.00/hour. As part of the budget passed in February, state participation in IHSS wages was reduced to $9.50/hour. This new proposal would further affect provider wages across the state, and in L.A. County would reduce wages from the current level of $9.00/hour to minimum wage unless the County is able to pay the difference out of local funds.
Provider health benefits in L.A. County would not be directly affected under this proposal. However, the governor's proposed cuts to services could cause many providers to lose their health benefits. For instance, if a provider who is working 85 IHSS hours per month sees a six-hour cut in his/her consumer's authorized IHSS hours, the provider would be dropped from the healthcare plan unless they begin to work for another consumer.
Strengthening of the IHSS Anti-Fraud Initiative. This proposal assumes a program savings of $15.8 million by strengthening the efforts to seek out cases of fraud within the IHSS Program.
IHSS cost containment reductions. This proposal would reduce funding for IHSS by an additional $301.5 million by cutting services to individuals who only need minimal assistance or supervision to perform certain tasks. It is unclear at this time which consumers this proposal would directly impact.
The permanent elimination of the Cash Assistance Program for Immigrants (CAPI) and the California Food Assistance Program. Both of these programs provide assistance to certain legal immigrants who are seniors or persons with disabilities who have been denied SSI and federal food stamp benefits because of their immigration status (i.e., those who have been in the U.S. for five years or less). This would eliminate benefits for over 30,000 legal immigrants.
A reduction in SSI/SSP benefit levels to the minimum level allowed by the federal government. The budget passed in February included a reduction in the SSI portion of SSI/SSP payments to levels set prior to December 2008, effective May 1st. In addition, the budget included a provision to cut the overall SSI/SSP payment rate by 2.3% effective July 1st. The governor is now proposing to lower the SSI/SSP payment a third time, effective September 1st. If passed, this would lower the benefit payments to $830/month for an individual or $1,407/month for couples. Many IHSS consumers depend on their SSI/SSP payments to pay rent and obtain the basic necessities that they need to live independently in their own homes.
The elimination of state-only Medi-Cal services. The governor has proposed to eliminate several Medi-Cal programs that are not mandated by Medicaid regulations, including Medi-Cal sponsored adult day health care, dialysis, non-digestive nutrition, and breast and cervical cancer treatment services. The governor has also proposed to increase funding for the Medi-Cal Anti-Fraud Initiative in hopes of reducing Medi-Cal expenditures by $47.9 million.
In addition to the above, many other state-sponsored programs are facing critical cuts. These include proposals to 1) reduce by $234 million funding for regional centers, which provide services to individuals with developmental disabilities, 2) eliminate the Multipurpose Senior Services Program, which provides social and health care management to seniors who wish to remain in the community, 3) eliminate the CalWORKs Program, which is the state's welfare-to-work program that serves over 500,000 individuals, and 4) eliminate the Healthy Families Program, which provides health, dental and vision coverage for children who do not have insurance.
As these proposals have only recently been announced by the governor, there are still some uncertainties about how some of them will affect the IHSS community if they pass. It is now up to the state legislature to decide if they will accept or reject the governor's proposals.
More information on these proposals and their status in the budget process will be published in the next edition of PASC E-News. Additional information on the proposed cuts can also be found at
www.ebudget.ca.gov or
www.lao.ca.gov.
Back to top