Senate Passes Budget - Now Heads To Assembly

CALIFORNIA UCP CAPITOL REPORT #110-2003
JULY 27, 2003 - Sunday evening

SENATE PASSES BUDGET BY VOTE OF 27-10; BUDGET NOW HEADS FOR ASSEMBLY VOTE THIS WEEK; CUTS TO DISABLED COMMUNITY MINIMIZED

As expected, the State Senate voted Sunday evening (July 27) 27-10, to pass the compromise budget proposal that essentially minimized cuts impacting people with developmental and other disabilities, that was put together by Senate President Pro Tem John Burton (D-San Francisco) and Senate Republican Leader Jim Brulte (R-Rancho Cucamonga). With California now 27 days without a budget, the spending plan now heads to the State Assembly, where it will be taken up for a vote probably early this coming week.

Approval there, while not certain, seems likely given the vote in the Senate this evening. Governor Davis, facing an historic unprecedented recall election, is not likely to make further reductions (through line item or blue pencil). A budget seems likely before the end of this month. Also approved were several related pieces of legislation's to implement the main budget bill (referred to as "budget trailer bills).

The cuts and reductions impacting people with developmental and other disabilities were far below what Governor Davis proposed in January - and far less than what the Assembly and Senate Republicans proposed earlier this month. The reductions were very close to what was in the original Senate Democratic Budget proposal - and similar to the Assembly Democratic Budget proposal. Cuts include a 5% rate reduction to Medi-Cal providers - but long term care nursing homes, adult day health, clinical laboratories and services, intermediate care facilities for the developmentally disabled (ICF/DD) and some other smaller service categories related to long term care were exempted from the rate reduction. A major key point for advocates was the rejection of the Governor's proposed "statewide purchase of services standards" for community-based services funded through regional centers. The budget proposal also made no cuts to In-Home Supportive Services as initially feared.

The budget, raises no new taxes, pays off about $10 billion of the deficit through loans, and calls for additional cuts to Medi-Cal and other human services programs - though far below what the Governor proposed originally in January, and still far below what the Assembly and Senate Republicans proposed earlier this month. The reductions are also below that what was proposed in a bi-partisan proposal, which never went anywhere, offered in June by Assemblyman Joe Canciamilla (D-Pittsburgh) and Assemblyman Keith Richman (R-Northridge).

SUMMARY OF BUDGET ACTIONS BY SENATE IMPACTING PEOPLE WITH DISABILITIES:

MEDI-CAL
* PROVIDER RATE REDUCTION - WITH MANY EXEMPTIONS:
What the Senate Did: Passed rate reduction of 5% for Medi-Cal providers ($115.117 million cut - and savings to the state General Fund) but EXEMPT from this reduction are long term care nursing facilities, adult day health, intermediate care facilities for the developmentally disabled (ICF/DD), clinical laboratories and services (as defined) and some smaller service categories related to long term care.
Total Cut/Savings to General Fund: $115,117,000
What Does This Mean:This is obviously bad for Medi-Cal doctors, etc with the impact of reducing access to medical services for people with developmental and other disabilities, seniors because doctors will continue to leave the Medi-Cal program due. However,the exemption of this reduction for ICF/DDs, nursing homes, adult day health centers, etc is VERY good news. Many of these facilities would have faced closure if any rate reduction was imposed.
What Is Next: Assembly still needs to approve
* MEDI-CAL OPTIONAL BENEFITS
What the Senate Did: NO Medi-Cal optional benefits were eliminated, though the Senate did approve some "cost containment" measures relating to hearing aids (and accessories), and also regarding rental of durable medical equipment, and cost controls for prosthetic and orthotic appliances.
Total Cut/Savings to General Fund: $580,000 (General Fund) for cost containment for hearing aids; $500,000 (General Fund) for cost containment regarding durable medical equipment rentals; $2 million (General Fund) savings for controls for prosthetic and orthotic appliances.
What Does This Mean:Medi-Cal optional benefits remain in place - though with some cost containment measures (not certain how this will impact benefits).
What Is Next: Assembly still needs to approve.
* OTHER MEDI-CAL/HEALTHY FAMILIES REDUCTIONS
- Reduced by $6.1 million (state General Fund) to reflect changes of estimating methodology for the Early Periodic Screening and Diagnosis Program (EPSDT) for mental health services.
- Eliminates Second Year of Transitional Medi-Cal ($2 million savings)
- Implements a 6% "Quality Assurance Fee" for Intermediate Care Facilities for the Developmentally Disabled as requested by providers. A portion of this assessment would be used by the state to obtain federal matching funds. Some of this assessment would be used to offset State cots, and another portion would be used to provide a rate adjustment (increase) to ICF/DDs. This fee would be computed to return at least 100% of the fee paid by the ICF/DDs at the end of the particular quarter.
- Savings of $1.263 million (state General Fund) as a result of anti-fraud legislation in SB 857 (Speier), as soon as this bill is signed by Governor. [savings not actually reflected in the budget bill because it is not enacted yet]
- Savings from budget trailer bill AB 1762, including 2004-2005 budget year structural issues as follows -
* Freezes rates for long term care nursing facilities at their 2003-2004 levels and will NOT be increased in 2004-05.
* Freezes hospital inpatient rates at their 2003-2004 levels and will NOT be increased in 20042-2005
* Freezes health, dental, and vision plans participating in the Healthy Families Program at their 2003 levels.

DEVELOPMENTAL SERVICES
* REGIONAL CENTERS (Purchase of Service Budget - funds community-based services and supports that community organizations actually provide)
What the Senate Did: Made the following reductions, freezes or other changes in the "purchase of services" budget.
- Parental Co-Payment System (to be implemented 7/1/2004)
- Unallocated Reduction to purchase of service budget which funds community-based services and supports ($10 million for 2003-2004 budget year)
- Changes Eligibility to Partially Conform With Federal Law (about 400 new persons a year would no longer be eligible for regional center services, cut of about $2 million)
- Intake and Assessment - increases timeframe for regional centers to conduct intake and assessment of people with developmental disabilities from 60 days to 120 days, for cut (savings) of about $4.5 million
- Startup of New Programs Restriction - continues to restrict start-up of new programs except for health and safety reasons or its a part of the community placement program, for a cut (savings) of $5.9 million
- Freeze of Contracts for Adult Day Services, look-alikes, transportation, and supported living for one year (assuming the budget year) for cut (savings) of $18.942 million
- Freeze of Contracts for Residential Services for one year for cut (savings) of $7 million.
- Client Rights Contract - extends for 2 more years the contract for client rights in an effort to not incur administrative expenses during the 2003-04 budget year
- Self Determination Projects: makes technical changes to existing law to enable Regional Centers to identify cost efficiencies and to draw down additional federal dollars. Also eliminates the "sunset" for these projects, meaning these projects have no ending date.
Total Cut/Savings To General Fund: About $65 million (this includes the operations cuts of $8.6 million below, and all the freezes, cuts resulting from narrowing of eligibility, and the $10 million unallocated reduction.
What Does This Mean: Purchase of Service standards were NOT approved or part of the budget. And the cuts were far, far less than what the Governor proposed in January - or what the Assembly and Senate Republicans proposed earlier.
What Is Next: Assembly still needs to approve.
* REGIONAL CENTERS - OPERATIONS (CHANGES TO CLIENT & CASE MANAGER RATIOS)
What The Senate Did: Makes changes to existing client to case manager ratios by:
- Modifies from the existing 1 to 62 ratio (service coordinator to consumer) for all people with developmental disabilities who have not moved from a Developmental Center to the community since April 14, 2002 and in no case shall a service coordinator have an assigned caseload in excess of 79 consumers for more than 60 days. This proposal would end (sunset) as of July 1, 2007.
- Modifies from the existing 1 to 45 ratio for consumers who have moved from a Developmental Center but have resided in the community for at least 12 months shall receive service coordination as stated above. This proposal ends (sunsets) as of July 1, 2007.
Total Cut (Savings to General Fund): $8.6 million
What Does This Mean:Could mean some staffing reductions or changes in regional centers. This proposal is the same that was previously approved by the budget conference committee.
What Is Next: Assembly still needs to approve.
* HABILITATION SERVICES - TRANSFER
What the Senate Did: Moved the Habilitation Services Program effective July 1, 2004 (AB 1753) from the Department of Rehabilitation to the Department of Developmental Services.
Total Cut/Savings To General Fund: $2.2 million (General Fund) for the 2004-05 budget year
What Does This Mean:Previously in all other budget proposals - would transfer this program, but not until July 1, 2004. Stakeholders will be involved in helping to make the transfer work.
What Is Next: Assembly still needs to approve.
* HABILITATION SERVICES - RATE REDUCTIONS/FREEZE
What the Senate Did: Suspends the adjustment of work activity program rates for the 2003-04 budget year. Reduces the work activity program provider rates by 5% and reduces supported employment provider rates by 2.5%. (AB 1752)
Total Cut/Savings to State General Fund: $16.7 million (state General Fund)
What Does This Mean:This action was previously in the Senate Democratic budget proposal in June (and in all other budget proposals). It has significant and potentially devastating impact for community-based organizations, already reeling from staggering increases in workers compensation costs.
What Is Next: Assembly still needs to approve.
* COMMUNITY CARE FACILITIES
What the Senate Did: Reduced by $1.570 million (state General Fund), to eliminate the federal pass through portion of the SSI/SSP adjustment for Community Care Facilities that serve people with developmental disabilities. The state - according to the Senate analysis of this action, can use these funds to offset its General Fund support of these providers. (AB 1762)
Total Cut/Savings to General Fund: $1.570 million
What Is Next: Assembly still needs to approve.

SSI/SSP (SUPPLEMENTAL SECURITY INCOME/STATE SUPPLEMENTAL PAYMENT)
* COST OF LIVING ADJUSTMENT (COLA)
What The Senate Did: Suspends the state cost of living adjustment for SSI/SSP grants for the 2003-2004 budget year (a cost of living adjustment is scheduled for January 2004 - which this would suspend)
Total Cut/Savings: $104 million (general fund) for 2003-2004 budget year and $213.2 million (general fund) for the 2004-2005 budget year.
What Does This Mean:About 1.1 million Californians who are seniors, blind or with developmental or other disabilities would be impacted. They would not receive a $14 increase to their grant, which would have increased their monthly grant to $805. The Senate plan did NOT roll back the SSI/SSP grants back to the federal "maintenance of effort" level - which the Assembly and Senate Republican (and Governor) proposals contained.
What Is Next: Assembly still needs to approve.

MENTAL HEALTH
* Community Treatment Facilities - continues supplemental rate payment for these facilities that service children in foster care who have a serious mental health diagnosis. The 2003-04 budget continues the same level of funding as provided in the 2002-2003 budget.
* Managed Care Regulations - provides for up to 1 year of emergency regulation authority for the Department of Mental Health to draft managed care regulations that conform with recent changes in federal law.
* Second Level Appeals - codifies the second level appeals process and requires the loser of the appeal to fund it.
* Restitution Fund - eliminates the Department of Mental Health's authority to access this fund for crime victims
* Psychologists - deletes the "sunset" for health facilities operated by the state offering care of services within the scope of practice of a psychologist to establish rules and medical staff by-laws that include provisions for medical staff membership and clinical privileges for clinical psychologists within the scope of their licensure.
What Is Next: Assembly still needs to approve.

NEXT STEPS
The Senate budget deal as announced by Sen. Burton and Sen. Brulte on Thursday was a major breakthrough, with passage in the Senate Sunday a major step in ending the budget stalemate.
STATE SENATE:
* Senate passed the budget compromise proposal (AB 1765 as amended). The Senate also passed several related bills (referred to as budget "trailer bills" including AB 1762 as amended, and AB 1752 as amended).
* The Senate adjourned at about 9 PM, for summer recess and will not return back to Sacramento until Monday, August 18.
ASSEMBLY:
* Assembly will now need to consider the Senate budget proposal, and will need to pass it with at least 54 votes of its 80 members. The Democrats control the Assembly 48-32 and need at least 6 Republican votes.
* The Assembly will meet next on Monday, July 28, 12 noon, though it is not certain they will take up the budget then. They could take it up on Tuesday possibly.
* Though the outcome is not certain, approval however appears likely - at this point. IF the Assembly changes the Senate budget plan in any way, the Senate will then need to return and approve those changes before it can be sent to the Governor. The pressure is on the Assembly now, to accept the budget spending plan passed by the Senate, "as is".
GOVERNOR
* Facing an historic recall election, now set for October 7, the Governor will need to approve the budget bill, which he is almost certain to do without major changes.
* Faced with an uphill recall battle and poll approval ratings plummeting to less than 22%, the Governor is not likely to use his "blue pencil" or line item veto to reduce spending or expenditures further than what is already in the Senate budget plan - for fear of further enraging constituencies already angry with cuts he proposed in January. That actually has been the case since April when the recall was gaining steam.

WHAT DOES THIS ALL MEAN
* California is now 27 days without a budget - and the impact of no budget is growing daily as more and more people who need programs and services and workers are affected, but it now seems likely the budget stalemate will end before the end of this month.

WHAT CAN YOU DO
* WATCH FOR UCP/CALIFORNIA COMMUNITY ADVOCACY NETWORK ACTION ALERT ON BUDGET (to be released later today which will cover all possible cuts impacting people with developmental and other disabilities (including SSI/SSP, Medi-Cal, community-based services and supports funded through regional centers, Habilitation Services, IHSS)
* SAVE THE DATE: AUGUST 20th WED LANTERMAN UNIFIED ACTION MEETING - beginning at 10 AM, "Unified Action" meeting in Sacramento, bringing together people with developmental and other disabilities, their families, providers, direct care workers, regional centers, independent living centers and others to continue efforts for unified action and strategy that responds effectively to the continuing funding crisis. "Action Groups" or task forces will be formed to develop alternatives, options, solutions, on the many issues impacting people with developmental and other disabilities including purchase of services (and purchase of service standards, direct care wages and provider rates/costs), parental co-payments; expanding federal funding; workers compensation; crimes and victims; special education; narrowing of eligibility standards for people with developmental disabilities, transportation, housing, and also a proposed statewide constitutional initiative campaign, and other issues. These "action groups" or task forces will report back for a follow-up meeting in mid-September with the hope that people can mobilize toward a unified action and strategy on each of those issues and proposed solutions. This meeting will also include (tentative) people from the Centers on Medicaid and Medicare Services to speak about the Home and Community Based Waiver and other federal resources, and also (tentative) Lt. Governor Cruz Bustamante.

FOR MORE INFORMATION ABOUT THIS REPORT
* This is a report for Californians with developmental (& other disabilities), families, providers and other advocates, from the California Coalition of United Cerebral Palsy Associations, a link to the California Community Advocacy Network.
* If you would like to get on this distribution (and conversely, get off of it) please send an email with that request to: martyomoto@rcip.com. Sharing information is part of our organizing effort. Please feel free to forward or copy this (attribution is nice). We're all in this together!
Marty Omoto, advocate/brother of Alana, sister with developmental disabilities
CA Coalition of United Cerebral Palsy Associations
1225 8th Street Suite 480 Sacramento, CA 95814 916/446-0013 (NEW phone number!)
NEW fax number: 916/446-0026 email: martyomoto@rcip.com
Coalition Chair: Philip Ksarjian (UCP of Greater Sacramento)
Past Chair: Ron Cohen (UCP of LA, Ventura and Santa Barbara Counties)

SAVE THE DATE: AUGUST 20TH LANTERMAN UNIFIED ACTION MEETING - THE WHOLE WORLD IS WATCHING!

CALIFORNIA UCP CAPITOL REPORT #109-2003
JULY 24, 2003 - Thursday evening

BREAKTHROUGH IN BUDGET DEADLOCK AS SENATORS BURTON AND BRULTE REACH DEAL; VOTE IN SENATE SET FOR SUNDAY - ASSEMBLY TO FOLLOW NEXT WEEK

As previously reported (UCP Capitol Report #108-2003) late Thursday afternoon,
Senate President Pro Tem John Burton (D-San Francisco) and Senate Republican Leader Jim Brulte (R-Rancho Cucamonga) have reached a deal to break the 24 day long deadlock, announced in a surprise joint press conference just before 4 PM Thursday afternoon. With California facing an historic recall election of Governor Davis on October 7, the deal between the two powerful leaders in the State Senate is almost certain to be approved by a bi-partisan vote when the Senate reconvenes in a rare Sunday evening session, July 27, at 6 PM. The Senate budget plan would still need approval of the Assembly, which is expected to meet Monday, July 28, before it can go to Governor Davis for approval.

Though neither Senate leader gave specifics of the budget deal, Sen. Burton said that "It is a budget that will protect the most needy and vulnerable in our society. It's a budget that contains no new taxes. It's a budget that does not break into the Proposition 98 [education funding guarantee] formula. It's a budget that causes cuts in many programs at both the state and local level, but given the cards that dealt us, given the deficit we had, it is the best we can do. Its a budget that provides a mechanism to pay off bonds that would be sold to cover last year's debt."

The new Senate budget proposal is based on the original Senate Democratic budget plan that was failed passage late June, with additional reductions, shifting, borrowing, and no tax increases. Though details were still not available Thursday evening, the budget deal does include:
* REVENUES: No new taxes
* EDUCATION FUNDING: Maintains the Proposition 98 - education funding guarantee, level of funding.
* TAX SWAP: Institutes a "tax swap", which would roll over $10.7 billion of the deficit and pay that out over 5 years.
* VEHICLE LICENSE FEE INCREASE: Includes revenues from the increase of vehicle license fees triggered by the Governor's Department of Finance - which Senate Republicans still vow to contest with legal challenges.
* SPENDING CUTS: Includes total of $11 billion of spending cuts and reductions in variety of state services - including additional reductions to Department of Corrections and some additional cuts to higher education. Some additional cuts to health and human services - though no details.
* MEDI-CAL: There are some reports that Medi-Cal rates for some or all providers will be reduced for possibly 1-3 years by 5%. This is significant since this is the first time - other than Governor Davis' original budget proposed in January, that a budget plan proposes cuts to Medi-Cal providers. However this is not confirmed. There are some reports that Medi-Cal co-payments for some (though apparently not people with disabilities) would be instituted, though this is not confirmed. It appears that some optional benefits would be eliminated but apparently not durable medical equipment or dental services. However this is not confirmed.
* SSI/SSP: There were some reports that SSI/SSP cost of living adjustments would be suspended - though the grants would not be rolled back to the bare minimum level required by the Federal government, as proposed by Governor Davis earlier - and also as proposed in earlier Assembly and Senate Republican proposals.
* REGIONAL CENTERS: It does not appear - from initial reports - that "statewide purchase of service standards" for community-based services and supports for people with developmental disabilities (funded through the 21 non-profit regional centers) is part of the Senate budget deal. It appears that the "unallocated reduction" (meaning cuts not specified by the State but left to the regional centers to determine) for the regional center budget that funds community-based services is still far less than what the Governor originally proposed in January ($100 million), far less than what the Assembly and Senate Republican proposals ($97 million), and appears to be less than what the Governor proposed in May ($50 million). However there are no other details. It appears that all other cuts as previously approved by the Budget Conference Committee in June - or as contained in the Senate Democratic budget proposal - are included in the new Senate budget deal.

Both senators discounted reports that a deal was made in part because of the downgrade in the state's bonds to "junk bond" status today by Standard and Poors.
Sen. Brulte:"Actually, the agreement took place before that".
Sen. Burton: "The Standard and Poors' downgrade was irrelevant to our desire to get a budget and to achieve this framework. Like, if they wouldn't have downgraded us, we would wait another two weeks? No. We wanted to get this done three or four weeks ago and the way things work in the legislative process, this was it..."

HIGHLIGHTS FROM 7/24 JOINT PRESS CONFERENCE OF SEN. JOHN BURTON AND SEN. JIM BRULTE
The following are verbatim comments by Senators Burton and Brulte at the late Thursday afternoon press conference of interest (I compiled and transcribed):
Reporter: "Some of your [Democratic Senators] members wanted to have spread bond payments over 10 years through a quarter cent [sales tax increase] and why did that deal not go through? And do you think all your members will vote for it?"
Sen. Burton: "Well, I'm hopeful [that Senate Democrats will support the plan]. It didn't go through because it was a strong sticking point with the Republicans because they think that somehow that the pension obligation bonds, the STRS [State Teachers Retirement System] obligation bonds, the tobacco obligation bonds...were ...enough bonds and they [Senate Republicans] were worried about going out into ten years [to repay them]. Our [Senate Democrats] basic position has always been to protect these programs for the poor, both in Medi-Cal and subsistence grant levels. And that's what we did and we were not going ot hassle over that issue... I would expect a vast majority of our members to be supportive of this, just because they know its something that we've got to do. I mean, I don't like it and I don't know if there is anyone else in the [Democratic] caucus whose heart bleeds as much as mine or more than me - they know there is stuff that we have to do...There aren't a hell of a lot of options. The options are to stay here forever and a day and not do anything. And the payments to child care, some of the DD [developmental disabilities] payments, community college - I mean real people were going to start to get hurt."

Reporter: "...Where are the cuts coming from? If they are not coming from the people you want to protect?"
Sen. Burton: "There is a modicum [modest amount] coming from them. Not anywhere close to where the Governor was. Not anywhere close to where either the Assembly Republicans or the Senate Republican proposal was. There was cuts in general government. There were some cuts in [Dept of] Corrections. There were some cuts in higher ed."

Reporter: "Is this [the budget deal] sufficient to have 27 votes [requirement for passage in the Senate]?"
Sen. Brulte:"We will have 27 votes on this"
Sen. Burton:"We will have 27 [votes] I believe because basically it's as good or bad as it gets. And I think it's as good as it gets. And it can only get worse from our [Senate Democrats] standpoint. And I believe it can only get worse at some point, form the Republican Caucus standpoint. And its something that has to be done. For those of you have been here around here long - there has never been anything like this. We walked in the door with $38 billion [deficit] looking at us. And there has never been anything like that. And the fact that we got out alive and not doing great damage to the infrastructure of this state I think speaks well for the fact that we were able to do that. We are proud that we got something done. We're proud of the product - not really. I think, he's [Brutle] happy with the 'no tax' thing. I'm happy with the aged, blind and disabled and other things...but other than that...
Sen. Brulte:"You [the state] have a $38 billion deficit that took at least three years to grow. I said before, no matter how much I would like to, I do not know how to eliminate that deficit that took three years to create, in one year. Don't know how to do it. And if at the end of the day, we come back here next May or June, with a $7 to $8 billion problem [next year's projected shortfall], instead of a $38 billion problem, I consider that a huge step forward. I'm absolutely convinced that the [Wall Street] markets will consider it is a huge step forward. And you know, there are some Democrats who wanted to hold out forever and make sure they could convince us to vote for taxes. There were some Republicans that said 'hey we want a budget that has no deficit next year.' And at the end of the day, they weren't going to get us to vote for taxes, and there was no way we could cut and eliminate the deficit [for the next budget]"

Reporter: "Has this [budget proposal] been run by the Wall Street lenders? Will they accept this?"
Sen. Burton: "They don't have a vote up here, last I heard"
Reporter: "In a sense they do sir"
Sen. Burton:"In a sense they don't [voice loud]! I don't care about Standard and Poors! And I don't care about Wall Street! I care about 27 and 54, and a signature [the votes needed in the Senate, Assembly and the approval of the Governor needed to pass a budget]."
Reporter: "But it only works if they buy those bonds..."
Sen. Burton:"Well if the money's there. I mean, I never knew anyone who bought bonds, you know - If we said to them, we've got an idea where we can go rob a bank and get the money to pay off these bonds, they'd say 'don't tell us, that's fine, we'll buy 'em.' [laughter]. The money will be there to pay off the bonds. I mean it's that simple..."
Sen. Brulte:"We always had the view, meaning Senate Republicans had the view, that as long as you made reductions in expenditures so you can come in at or below the Governor's out year deficit number, you can accommodate the payment of that deficit bond. The [Governor's] Department of Finance has insisted on a separate revenue stream. We've carved out to make room for that, the tax swap, we have been led to believe by the Department of Finance meets the desires or needs of the lenders...The Department of Finance has led us to believe that the tax swap meets their needs."

Reporter: "Would you mind giving us broad parameters what this [budget] agreement is?"
Sen. Brulte:"It sucks" [laughter]
Sen. Burton:"As opposed to the narrow one that I just did? [laughter]. It is a budget that will protect the most needy and vulnerable in our society. It's a budget that contains no new taxes. It's a budget that does not break into the Proposition 98 [education funding guarantee] formula. It's a budget that causes cuts in many programs at both the state and local level, but given the cards that dealt us, given the deficit we had, it is the best we can do. Its a budget that provides a mechanism to pay off bonds that would be sold to cover last year's debt. And as we say, right now it has got two votes from people [Burton and Brulte], that if it were their druthers, would be voting on something else, but as people that consider themselves responsible for seeing that the state moves ahead, that we are going forward and going to urge our colleagues to vote for."

NEXT STEPS
The Senate budget deal as announced by Sen. Burton and Sen. Brulte is a major breakthrough though several steps still need to happen before a budget is in place:
STATE SENATE:
* Senate will need to pass this proposal with at least 27 votes of its 40 members (Democrats control the Senate 25-15 and need at least 2 Republican votes to pass the budget with the 2/3rds majority required by the state constitution).
* Sen. Burton said that the Senate, which adjourned just after 3:30 PM this afternoon (7/24), will reconvene Sunday evening (7/27) at 6:00 PM to vote on the new budget proposal. They are likely then to adjourn and recess for the summer until August 18, Monday - putting additional pressure on the Assembly to pass the Senate plan "as is".
* Burton and Brulte both were certain that the proposal will pass.
ASSEMBLY:
* Assembly will then consider the Senate budget proposal, and will need to pass it with at least 54 votes of its 80 members. The Democrats control the Assembly 48-32 and need at least 6 Republican votes.
* The Assembly took no action on the budget today (7/24) and does not plan to meet next until Monday, July 28, 12 noon.
* It is likely the Assembly will take action sometime early next week on the Senate budget deal - though the outcome is not certain, in large part because the specifics of the deal are not yet known. Approval however appears likely - at this point. IF the Assembly changes the Senate budget plan in any way, the Senate will then need to return and approve those changes before it can be sent to the Governor
GOVERNOR
* Facing an historic recall election, now set for October 7, the Governor will need to approve the budget bill, which he is almost certain to do without major changes.
* Faced with an uphill recall battle and poll approval ratings plummeting to less than 22%, the Governor is not likely to use his "blue pencil" or line item veto to reduce spending or expenditures further than what is already in the Senate budget plan - for fear of further enraging constituencies already angry with cuts he proposed in January. That actually has been the case since April when the recall was gaining steam.

WHAT DOES THIS ALL MEAN
* California is now 24 days without a budget - and the impact of no budget is growing daily as more and more people who need programs and services and workers are affected. It seems possible now that a budget will be passed before August.

WHAT CAN YOU DO
* WATCH FOR UCP/CALIFORNIA COMMUNITY ADVOCACY NETWORK ACTION ALERT ON BUDGET (to be released Friday which will cover all possible cuts impacting people with developmental and other disabilities (including SSI/SSP, Medi-Cal, community-based services and supports funded through regional centers, Habilitation Services, IHSS)
* SAVE THE DATE: AUGUST 20th WED "UNIFIED ACTION" LANTERMAN MEETING - beginning at 10 AM, "Unified Action" meeting in Sacramento, bringing together people with developmental and other disabilities, their families, providers, direct care workers, regional centers, independent living centers and others to continue efforts for unified action and strategy that responds effectively to the continuing funding crisis. "Action Groups" or task forces will be formed to develop alternatives, options, solutions, on the many issues impacting people with developmental and other disabilities including purchase of services (and purchase of service standards, direct care wages and provider rates/costs), parental co-payments; expanding federal funding; workers compensation; crimes and victims; special education; narrowing of eligibility standards for people with developmental disabilities, transportation, housing, and also a proposed statewide constitutional initiative campaign, and other issues. These "action groups" or task forces will report back for a follow-up meeting in mid-September with the hope that people can mobilize toward a unified action and strategy on each of those issues and proposed solutions. This meeting will also include (tentative) people from the Centers on Medicaid and Medicare Services to speak about the Home and Community Based Waiver and other federal resources, and also (tentative) Lt. Governor Cruz Bustamante.

SAVE THE DATE: AUGUST 20TH UNIFIED ACTION - LANTERMAN MONTHLY MEETING - THE WHOLE WORLD IS WATCHING!