California Budget Crisis:

• Assembly Budget Committee Members Appointed
• Legislative Democratic Leaders Respond to Governor
• Republican Leaders Lash Back At Governor

Bickering Between Governor and Legislature Grows Heated As Budget Deficit Swells to Nearly $15 Billion – Disability and Senior Advocates Fear More Proposals for Bigger and New Cuts in January As Fight To Stop Mid-Year Budget Cuts Continues In Budget Subcommittee Hearings

SACRAMENTO (CDCAN) - In response to Governor Arnold Schwarzenegger’s strong criticism of the Legislature’s stalemate on a solution to the growing state budget crisis Wednesday afternoon (December 10), Legislative Democratic leaders blamed the problems causing the delay on the Republican Governor and his inability to “convince even a few of his Republican colleagues to compromise”. Republican legislative leaders – who were the named target in some of the Governor’s remarks at a press conference earlier on Wednesday, responded back with some harsh words for both Schwarzenegger and Legislative Democrats.

Bickering Grows Heated As Budget Deficit Swells to Nearly $15 Billion

The bickering between the Governor and Legislature – and among both parties in the Legislature grew heated as the budget deficit grew from $11.2 billion earlier in November to nearly $15 billion. The latest figures, released during the press conference by the Governor, was more grim news that disability, mental health, and senior advocates fear will mean more proposals for bigger and new cuts to critical programs and services when the Governor releases his proposed 2009-2010 State budget on January 10th.

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Dear Friends (okay, so I sound like a presidential candidate right there) –

I hope you can make this event for CDCAN on Monday, December 15th from 4 to 7 PM.  It is in Sacramento in a building right next to the train station.  The building is so much nicer than the way that sentence sounds.  And there is a Starbucks on the first floor too right across the street from the federal courthouse.

Even if you cannot donate – or you already have (and thanks so much)  – please join us.  It will be nice to see people in a setting other than a budget hearing or a memorial service.

And the fund raiser invite mentions “drinks will be provided”.  Before one dashes over to the event just for that, one should also remember that in some parts of the world, like my office,  “drinks” can mean simply unbottled water in a pan.  I think though in this case the drinks will be pretty cool (what else does one call jugs of Ripple?). No – it will be nice.  Drop by – even for just a few minutes – and even if you bring a zip lock bag, that’s okay.  Sort of.  Just make it a small one.

Either way, I hope you can come – this is one event I didn’t organize, which means it will be nice. And I definitely don’t claim credit for the title of it either (“Merry Marty Party” – thankfully people will remember to always include the letter “P” in that last word, otherwise I will be reliving elementary school all over again).
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California Budget Crisis

• Senate Budget Subcommittee Hearing Schedule
• Dec 10th – Health Issues (Medi-Cal, Regional Centers, etc)
• Dec 10th – Education Issues (including special education)
• Dec 11th – Human Services (IHSS, SSI/SSP, CalWORKS, etc)

SACRAMENTO (CDCAN) – As reported yesterday in a previous CDCAN Reports, an important budget subcommittee – the Senate Budget Subcommittee #3 on Health and Human Services, chaired by Sen. Alex Padilla (Democrat – Los Angeles) has scheduled two separate hearings this week to review proposals to close the over $11 billion budget deficit, with major permanent cuts and other changes to the current State budget that if approved – would go into effect March 1, 2009 or sooner:

• December 10th covering health related proposals including proposed mid-year budget reductions and changes to Medi-Cal and regional centers that were proposed by the Governor (on November 6th) and Legislative Democrats (November 25th). Any proposals for mid-year budget changes and reductions impacting these programs by Legislative Republican will also be reviewed.
• December 11th covering human service related proposals including mid-year budget reductions and changes to In-Home Supportive Services (IHSS), SSI/SSP (Supplemental Security Income/State Supplemental Payment), CalWORKS, Cash Assistance Program for Immigrants that were proposed by the Governor (on November 6th), and Legislative Democrats (on November 25th). Like on December 10th, the subcommittee will also review any proposals for mid-year budget changes and reductions impacting these human service programs by Legislative Republicans.

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There was a memo posted earlier regarding these cuts, but this is the more verbose message from Marty Omoto of the California Disability Community Action Network.

SACRAMENTO (CDCAN) - Two bills containing proposals by legislative Democrats to cut spending by $8.1 billion and raise new revenues also by $8.1 billion over 18 months, were defeated in the Assembly, failing to win any Republican votes. Both Democrats and Republicans in both houses remain far apart on how to solve the budget deficit. A bill to cut spending in the Assembly was defeated 40 to 30, falling 14 votes short of approval. And a bill to raise taxes and other revenues, failed to win approval by 41 to 31, falling 15 votes short. Democratic Assemblymember Nicole Parra of Hanford, who is termed out, voted against both bills, defying Assembly Speaker Karen Bass.

Assembly Speaker Karen Bass said if the Assembly Republicans would have given their votes for revenues, Assembly Democrats had been prepared to consider other spending cuts and even the idea of a spending cap. She urged members to put ideology aside and to put their futures “at risk” .and warned that doing nothing and that California was headed for a economic “train wreck”.

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SACRAMENTO (CDCAN) - In a major leadership change at the Department of Health Care Services, which oversees the Medi-Cal and long term care programs, department Director Sandra Shewry and Chief Deputy Director of Health Care Programs Stan Rosenstein announced today that they will both be retiring from state service at the end of December. Governor Arnold Schwarzenegger announced also today the appointments of David Maxwell-Jolly, currently the head of the Department of Child Support Services, as the new director succeeding Shewry and Toby Douglas as the new chief deputy director to replace Rosenstein. Both appointments will take effect January 1, 2009.

Karen Johnson will continue to serve as Chief Deputy Director of Policy and Program Support.

The state’s Medicaid program – called “Medi-Cal”, serves over 6.5 million Californians, that includes over 1.6 million who have disabilities, blind or are seniors. The California program is the largest Medicaid program in the nation. The Governor recently proposed major reductions to the current year State budget to the Medi-Cal program, including changes in eligibility for some Medi-Cal programs, permanent elimination of several Medi-Cal “optional benefits” (called optional because the federal government does not require the states to provide them) including adult dental services. The Legislature, which was called back into special session to address the growing budget shortfall, has not taken action on any of the Governor’s proposals.

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SACRAMENTO (CDCAN) - The Legislature’s budget analyst issued a report – and a warning – that the state budget deficit will grow to over $28 billion by the end of the 2009-2010 State Budget year if the State fails to take action on addressing increases to revenues and more spending cuts to programs. The figure is $4 billion higher than what the Governor’s Department of Finance projected the shortfall to be last week and underscores what the Governor last week said was a budget “state of emergency”. See later CDCAN Report today for more details.

The Assembly Budget Committee, chaired by outgoing Assembly member John Laird (Democrat – Santa Cruz) is scheduled to hold a hearing on the budget crisis, Friday, November 14th, at 1:30 PM at the State Capitol in Room 4202. The specific agenda for the hearing is not yet available and it is not certain at this point what the focus of the hearing will be. The State Senate has not yet scheduled any budget hearings at this point.
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SACRAMENTO (CDCAN) - Faced with a growing budget shortfall that is now over $11 billion and growing, Governor Arnold Schwarzenegger proposed a wide range of major cuts, as expected, to health and human services that impact children and adults with disabilities, mental health needs, seniors, the blind, low income children and families, providers across California. The Governor also proposed big cuts to public education (K-12) that will have major impact on children with special needs, though he made no specific cuts to special education. The Governor estimated that the shortfall could grow another $13 billion during the 2009-2010 State Budget year that begins July 1, 2009 – meaning the total budget deficit that the State needs to bridge this year could be nearly $25 billion.

The proposals, which the Governor wants the Legislature to approve and go into effect this budget year (meaning in some cases as soon as December 1, 2008 and in other cases, March 1, 2009 or later) will be considered by the Legislature in special session. The Governor issued formally his proclamation calling the current Legislature – who have 100 of 120 members whose terms will expire on November 30th, back into a special or extraordinary session to consider his proposals. Newly elected or reelected legislators who were up for election November 4th, won’t take office until December 1.

The Governor wants these proposed cuts be approved by the current Legislature, would apply for this budget year which began July 1, 2008, but also extends the cuts for the entire budget year that begins July 1, 2009 and ends June 30, 2010.. In some cases – such as the proposed elimination of the Cash Assistance Program for Immigrants, which provides SSP level state funded grants to eligible legal immigrants who have disabilities, blind or seniors, would be permanent, as would the cuts proposed for IHSS and Medi-Cal..

Governor said his package of spending reductions for the special session total $4.5 billion or nearly half (about 49%) of what the projected current budget shortfall is. Proposed revenue increases account for about $4.7 billion or just over 51% of what the current project budget shortfall is.

The Governor will provide additional proposals – that will likely include more spending reductions, when he presents his proposed budget for the 2009-2010 State Budget year, on January 10, 2009.
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SACRAMENTO (CDCAN) - Governor Arnold Schwarzenegger is proposing major cuts, as expected, to health and human services, in addition to proposing ways to increase revenues, that includes an economic stimulus package.

The proposed cuts to health and human services – which the Governor would want to take effect for the current budget year and for the entire budget year for 2009-2010, are considered major. Cuts proposed in other areas of health and human services will be reported shortly.

Cuts proposed include:

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SACRAMENTO (CDCAN)  -  Governor Arnold Schwarzenegger will issue on Thursday, November 6 – instead of Wednesday -  his call for a special session of the Legislature to address what he called last week a  budget “state of emergency.”  He will also issue his proposals that include major across the board permanent and immediate spending cuts, proposals for revenue increases and an economic stimulus package to help improve the State’s economy.  There is no time yet set when he will issue the proposals and proclamation on Thursday.

The Governor originally had planned to issue his proclamation for a special session and also proposals to address the growing State budget deficit on Wednesday..

Both the Governor’s press office and the Department of Finance confirmed the date change.

Schwarzenegger Administration officials and other observers say that the California budget deficit could now be as high as $10 billion and could grow by the end of the current budget year, June 30, 2009, to as high as $25 billion.

More details in a later CDCAN Report this evening.

UPCOMING MEETINGS & CONFERENCE UPDATE

• 11/4 – ELECTION DAY – VOTE! HOTLINE NUMBER FOR PROBLEMS!
• 11/5 – SPECIAL SESSION OF LEGISLATURE (FIRST DAY)
• 11/6 – SKILLED NURSING FACILITY QUALITY WORKGROUP MEETING
• 11/7- GOVERNOR’S DISABILITY & SENIOR RIGHTS ADVISORY GROUP MEETING
• 11/8-9 - CONFERENCE OF IN-HOME SUPPORTIVE SERVICES (IHSS) ADVISORY COMMITTEES
• 11/17-18 – CONFERENCE OF END OF LIFE ISSUES FOR PEOPLE WITH DEVELOPMENTAL DISABILITIES

SACRAMENTO (CDCAN) – This is an update of regarding hot line information for voting problems encountered by persons with disabilities, mental health needs, seniors, and also an update on several upcoming public meetings and two statewide conferences. For groups or organizations that have upcoming conferences and would like to be included in these regular CDCAN Upcoming Meetings and Conference Update, please send your information to Marty Omoto at martyomoto@rcip.com

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