CALIFORNIA UCP BUDGET UPDATE
SEPTEMBER 23, 2002 - Early Monday Morning

Still No Action Yet By Governor Reported On Any Remaining Budget Related "Trailer Bills"

As of late Sunday evening (September 22), with just 8 days left before the deadline to approve, veto or let bills become law without his signature, no action by Governor Davis on any of the remaining budget related bills (referred to as "budget trailer bills")has been reported.

These key budget related measures include bills impacting people with disabilities, Medi-Cal, the Olmstead Decision state plan, In-Home Supportive Services, seniors, special education  mental health services, Healthy Families, and people with low incomes. The budget "trailer bills" contain specific
provisions on how certain reductions, cuts and spending are to be implemented.

As previously reported, the length of time between the signing of the main budget bill - and the "trailer bills" is not unusual, given the crush of hundreds of bills being acted on and passed during the final days of the 2002 legislative session, that ended August 31.

Also of intense interest, are several other controversial bills that the Governor has not yet acted on (as of September 22 late Sunday evening) including expanding family leave (SB 1661), and farm worker arbitration.  Actions on any of those bills will be reported immediately. [See California UCP Legislative Updates last week on Mental Health and Special Education Bills]

WHAT DOES THIS MEAN
* IMMEDIATE FUNDING CRISIS OVER - as previously reported, the immediate funding
crisis, caused by the lack of a budget, nearly caused the closure and shutdown of
programs and services across the state.  That specific immediate crisis is over, with the passage of the main budget bill - AB 425, which was passed by the Legislature August 31 and signed by the Governor on September 5.  However, more alarming now, the funding crisis in the community continues and the budget shortfall for 2003-04 is now projected anywhere from $10-16 billion or higher.
* CURRENT CUTS TO PROGRAMS AND SERVICES - The budget related bills (trailer bills)  contain provisions on how certain reductions or spending allocations are to be implemented - including cuts to regional center purchase of services budgets. Technically, these provisions that outline the process to cut regional center purchase of services expenditures, are not yet law, until the Governor approves those bills.  There is almost no doubt that the Governor will sign those trailer bills (with one possible exception), so many regional centers are proceeding with the process to cut expenditures. There are cuts amounting to over $60 million in regional center purchase of services - and millions more in cuts related to work activity and supported employment programs (as previously reported in July) under the Habilitation Program in the Department of Rehabilitation. In addition, the Governor may call for a special session sometime after the November election to look possibly additional cuts to the CURRENT year budget (as was done last year).
* LOOMING FISCAL CRISIS - With the state's fiscal condition worsening, and a budget, the threat of additional massive AND permanent cuts to health and human services - including developmental services - is very real - projected possibly as high as 20% (See California UCP Budget Update from 8/7/02 reporting the Governor's Call for State Agencies to Prepare Plans for 20% Permanent Cuts).  Watch for the California UCP Budget Alert for more details on a "call to action" - the time to organize is NOW!

NEXT STEPS
* GOVERNOR - has until September 30 (Monday evening, 11:59 PM) to sign, veto or allow bills to become law without his signature. He has already signed a few trailer bills that were delivered to him, including on September 9, the trailer bill relating to tobacco securitization (SB 1831). None of the trailer bills signed to date however, relate to services for people with (developmental, cognitive, physical) disabilities, mental illness or to seniors.
* ENACTMENT - the budget related bills will take effect immediately. The main budget bill - AB 425, signed on September 5, took effect immediately, giving the state a spending authority for 2002-2003 (the fiscal year ends June 30, 2003).
 

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FOR MORE INFORMATION
Marty Omoto, Legislative Director
CA Coalition of United Cerebral Palsy Associations
1225 8th Street Suite 480 Sacramento, CA 95814
916/446-3204  FAX: 916/446-3206 email: martyomoto@rcip.com
Coalition Chair: Michael Williams (UCP of the Golden Gate)