ASSEMBLY BUDGET SUBCOMMITTEE TAKES INITIAL STEP IN REJECTING MAJOR IHSS CUTS AS HUNDREDS OF PEOPLE WITH DISABILITIES AND SENIORS PACK STATE CAPITOL HEARING ROOM AFTER RALLY

SACRAMENTO  -  The Assembly Budget Subcommittee on Health and Human Services, with hundreds packing the hallways and hearing rooms in the State Capitol Wednesday (April 28), took the first initial though possibly significant steps, to reject by a vote of 3-0, two of  Governor Arnold Schwarzenegger's major proposed cuts to In-Home Supportive Services (IHSS):
* Rejected - for now - the Governor's proposal that would have effectively resulted in a sharp rollback in IHSS worker wages to the state minimum wage and eliminated most benefits.
* Rejected - for now - the Governor's proposal that would have effectively eliminated funding and the requirement for counties to establish an "employer of record" for IHSS workers - including county public authorities and advisory committees.
* The Schwarzenegger Administration has claimed that counties would have the option of maintaining wages and funding public authorities and advisory committees, though without the requirement and support of state funds.  [a full report, with excerpts of testimony from all the hearings the past 8 days will be reported in the next CDCAN Capitol Report]
The action - though not final - was greeted by cheers, shouts and applause by the the huge crowds packing the Assembly hearing room, Capitol hallways and overflow rooms.

The action late Thursday afternoon was taken on a strictly partisan vote, with Assembly Budget Subcommittee chair Assemblymember Mervyn Dymally making the motion, and Assemblymembers Loni Hancock (D-Berkeley) and John Laird (D-Santa Cruz) voting to take this initial step to reject the Governor's proposals and take the initial step of restoring funding.  Republican Assemblymember Robert Pacheco (R-Walnut) abstained and Assemblymember Ray Haynes (R-Murrieta) was not present for the entire 3-1/2 hour hearing.

The Assembly Budget Subcommittee's action - which only is an initial step - follows the Governor's reversal Thursday last week from his original proposal that called for the elimination of the "residual program" of the In-Home Supportive Services.  The Governor now is pushing forward a new proposal that would seek federal Medicaid matching funds to fund the "residual program" that serves over 75,000 children and adults with developmental and other disabilities and seniors.  The "residual program", currently funded only with state funds, permits, under strict requirements,  parents of minor children with developmental and other disabilities, and also spouses of loved ones with disabilities and also seniors to be their in-home worker.

The Department of Health Services released on Tuesday (April 27) a draft version of the proposal to the federal government seeking an exception to federal Medicaid regulations to allow federal funding for the "residual program".  The Department of Health Services is seeking comments and support from interested persons and organizations - though the timetable is extremely short due to the need to submit the proposal to the federal government by May 1.  A copy of the draft proposal for the IHSS "residual program" is on the CDCAN website at www.cdcan.org, under "budget issues" (and then under "Department of Health Services".  Comments from the public are due by 5:00 PM April 29 (Thursday).  The Assembly Budget Subcommittee heard from the Governor's Department of Finance and the Department of Social Services an update on this draft proposal - though took no action on it.

The Assembly Budget Subcommittee held off on taking any action on the other proposals by the Governor, including in-home supportive services domestic services and assessment related issues, leaving those items "open" for action at a later date.

THOUSANDS PROTEST IN SACRAMENTO IN SERIES OF RALLIES HELD WITHIN 10 DAYS IN APRIL
The Assembly Budget Subcommittee's action came after months of protests that began December 10, with a massive rally at the State Capitol that drew over 4,000 people who later jammed the Capitol to attend a Senate Budget Subcommittee hearing on the Governor's proposals to cut services and funding for people with disabilities. The Governor later reversed himself on some of those cuts, including rescinding a proposal to suspend the Lanterman Developmental Disabilities Services Act, considered the "civil rights" act for people with developmental disabilities - but kept other major cuts on the table.
* Later protests held in January, and also Feburary and March drew huge crowds in many locations in the state.
* Advocates then planned an unprecedented series of major protests at the State Capitol all held within a span of 8 days to coincide with major budget hearings that longtime Capitol observers say has never been done before.
* On April 19, the first demonstration in that series of protests, started off with a rally at the Crest Theater in downtown Sacramento and a march to the Capitol attracting over 600 people with disabilities and other advocates to attend a Senate Budget Subcommittee hearing on Governor's proposed cuts to community-based services funded by regional centers.
* That rally was followed by a protest rally held on the west steps of the State Capitol held April 22, drawing over 1,000 people to attend a Senate Budget Subcommittee on IHSS.
* The third protest was held on late Monday afternoon, April 26, with about 300 people rallying on the North Steps of the State Capitol, who packed to capacity the Assembly Budget Subcommittee hearing held later that day on the Governor's proposed cuts to community-based services for people with developmental disabilities.
* The last in that series of protests was held April 28, beginning at 11 AM, with over 1,200 children and adults with developmental and other disabilities, seniors, independent living centers, regional centers, other community organizations, in-home care workers, direct care and other workers who marched six vblocks from the Sacramento Convention Center  to the south steps of the State Capitol in a noisy demonstration chanting "we have rights - no more cuts".  Another crowd already gathered on the south steps of the State Capitol greeted the marchers, while a band called the Tu Tones (composed of people with developmental disabilities) sang and played Bob Marley and the Wailers' "Get Up Stand Up (For Your Rights)", "Respect", Tom Petty's "I Won't Back Down" and other songs.   The large crowd chanted "we won't go back" and listened to brief remarks from  people with disabilities, family members and others before entering the Capitol for the hearing on in-home services.   The huge protest rally was the fourth consecutive major protest rally on disability rights in less than 8 days that coincided with budget hearings on the Governor's proposals to cut major services and programs impacting people with disabilities and seniors.

WHAT DO THE ACTIONS BY THE ASSEMBLY AND GOVERNOR  MEAN TO PEOPLE WITH DEVELOPMENTAL AND OTHER DISABILITIES AND SENIORS?
* No immediate impact to the existing IHSS programs and services.  Everything at least for now remains the same -  at least until July 1  Both houses of the Legislature have refused to take action previously on the Governor's original requests to make cuts to the current budget now in place, with the IHSS "residual program" elimination slated for an effective date of 4/1/04. Even if the Governor's new proposal for federal matching funds fails, there is no way now that any change requested by the Governor to IHSS can take effect any sooner than July 1, 2004 - assuming the Legislature approves such changes, which may not be likely.
* As of April 28 Wednesday evening, no FINAL actions were taken by either house or the Governor on the Governor's proposed budget cuts impacting people with disabilities . All actions or proposals made by the Assembly Budget Subcommittee April 28, or by the Governor last week,  regarding IHSS, are initial steps that still require further approval by either the federal government , the full Legislature or both.
* For advocates of people with disabilities and seniors, the action by the Assembly Budget Subcommittee is an initial - though possibly major - step forward.  However the actions taken by the Assembly Budget Subcommittee today (April 28) still need approval by the full Assembly Budget Committee, then by the full Assembly - and also it's counterparts in the Senate.  And any actions taken by the budget subcommittees or the full budget committees in either house or even the full Senate or Assembly  can be reversed when the special joint budget committee (called conference committee) meets later in May to resolve differences in the versions of the proposed budget that the Assembly and Senate move forward.
* The Governor's action last Thursday to back off - at least for now - on his proposal calling for the elimination of the IHSS "residual program"  is also  an initial - though possibly significant - step forward, though the proposal still faces review by the Legislature - and must receive approval by the federal government.    The Davis Administration  two years reported to a special Assembly Budget Subcommittee hearing held in March 2002 that it was "very confident" that it would receive approval of its' proposal seeking  federal matching dollars for the IHSS "residual program".  The Davis Administration was not successful for various reasons in moving forward on its proposal.  The Schwarzenegger Administration told both the Senate and Assembly budget subcommittees that it was "very optimistic" about obtaining approval from the federal government, citing recent meetings with federal officials and the Governor and California Health and Human Services Secretary Kim Belshe.

NEXT STEPS
* Budget Hearings: Final round of budget hearings where general public testimony will be allowed on the Governor's budget
proposals are now virtually completed (except  for certain issues, the first week of May).   Except for the two IHSS actions taken by the Assembly Budget Subcommittee #1 on Health and Human Services today (April 28), neither house has taken any other action on major budget issues impacting people with developmental or other disabilities (and seniors).  Hearings continue in mid-May by the budget subcommittees in both houses, though public testimony will not be allowed except for new proposals or issues. The subcommittees at that time will take initial action on budget issues - and refer them to the full budget committees of both houses, who can reverse or approve the subcommittee actions.
* Draft IHSS "Residual Program" Medicaid federal funding (waiver) Proposal is being reviewed by  stakeholders (copy available on the CDCAN website at www.cdcan.org  under "Budget Issues", and then under "Department of Health Services), with comments due to the Department of Health Services by 5:00 PM, April 29 (Thursday).  The Department of Health Services intends to submit the proposal to the federal government just after May 1, with an effective date for the proposal July 1, 2004.
* Medi-Cal Redesign/Reform Work Group Meetings are near completing its work with the Department of Health Services on a proposal to restructure the state's Medicaid program. The Governor plans to submit this proposal to the Legislature sometime in mid-May.  It is not certain at this point how or exactly when the Legislature will review the massive restructuring proposal that will have tremendous impact to people with disabilities and seniors.  The Medi-Cal redesign/restructure proposal could have major impact on existing federally funded Medicaid programs including those community-based services for people with developmental disabilities and even possibly the existing (and proposed) federal proposals impacting In-Home Supportive Services.
* Governor - will release sometime during week of May 10th (likely at this point, May 14, Friday) major revisions to his proposed budget (the original version was submitted to the Legislature on January 9) reflecting changes in state spending and revenues - and also any additional proposals to cut spending or rescind or change  previously proposed cuts.
* Full Budget Committees: both houses will hold at least one hearing (no public testimony) after the final subcommittee hearings to approve their actions and forward for initial approval by both houses (late May or early June)
* Budget Joint Committee (conference committee): after the full Senate and Assembly pass their initial version  of budget (late
May or early June), the differences between the two versions go to a special joint budget committee (called a conference
committee) composed of three members of the Senate and three from the Assembly to hammer out agreement.  While those
hearings are public, no public testimony is allowed.  At some point - in early June (before June 15), the conference committee will forward its actions for approval by both houses.
* Senate and Assembly - unless there is a major impasse (as there has been for the past several years), both houses are required by the State Constitution to pass a final budget on or before June 15 in order to give the governor time to review and approve a budget on or before June 30 (the last day of the state budget year).  If there is an impasse will largely depend on what the Governor's budget revisions in May look like.
* Governor - will review, make line item vetoes and approve budget.  Budget goes into effect July 1, 2004 through June 30, 2005.