Correction from 5/22 Report:
Sen Budget Subcommittee Rejects Governor's Proposal for Statewide Limits on Regional Center Community-Based Services and Approves $7 million Reduction to Regional Center Community-Based Services (POS) Budget

SACRAMENTO  (Correction to 5/22 Report)  -  The Senate Budget Subcommittee #1 on Health and Human Services voted 3-2,  rejecting the Schwarzenegger Administration's controversial proposal to impose statewide standards that would establish significant limits on regional center funded community-based services for nearly 200,000 children and adults with developmental disabilities, and instead approved a $7 million "unallocated reduction" to the regional center community-based services budget - often referred to as "purchase of services" or POS.  The CDCAN Report issued Saturday incorrectly reported that the reduction was $11.9 million, the same amount the Assembly Budget Subcommittee approved on Thursday, May 20, after that subcommittee also rejected the Governor's proposal for statewide standards or limits.   Because the amounts differ, that budget issue will go to the joint budget conference committee.

Chesbro Says No Need For Statewide Standards That Limit Services
In announcing his motion to reject the Governor's" purchase of service standards", Sen. Chesbro, (D-Arcata, 2nd District) chair of the Senate budget subcommittee,  told the Department of Developmental Services and Department of Finance that "the department [Developmental Services] has the authority and ability to manage regional centers and contain their costs now, in a more precise and appropriate way then applying flat out statewide standards..they're [the Department of Developmental Services] asking us [the Legislature] to tell them [the regional centers]] to do it."

Both subcommittees firmly rejected  the controversial proposal, which some advocates claim would roll back an individual's rights under the Lanterman Developmental Disabilities Services Act, considered the "civil rights" act for children and adults with developmental disabilities - though both subcommittees also approved reductions to the regional center budget that funds community-based services - known as "purchase of services".  The amount of the "unallocated" or unspecified reduction differed in both houses however.

Some regional centers claim the "purchase of service" standards is a better alternative that more "unallocated" reductions.  How the reduction would be specifically implemented would be left to the regional centers to work out  under the direction of the Department of Developmental Services - as they did last year, with families, people with developmental disabilities using services, community organizations and others (referred to as an unspecified or "unallocated" reduction).  The $11.9 million - the amount of "unallocated reduction" approved by the Assembly Budget Subcommittee last week, is the amount the Schwarzenegger Administration estimated the State would save in state general funds if the porposed statewide standards was approved.

The actions taken by the budget subcommittees are not final however.  [see separate CDCAN Capitol News Report #94-2004 for full report on action to rescind cuts to IHSS and SSI/SSP]

MEMBERS OF THE BUDGET SUBCOMMITTEES
* Senate Budget Subcommittee #3 on Health, Human Services, Labor & Veteran Affairs Members
Senators Chesbro (D-Arcata, 2nd District), Gil Cedillo (D-Los Angeles, 22nd District), Tom McClintock (R-Thousand Oaks, 19th District), Bruce McPherson (R-Santa Cruz, 15th District) and  Deborah Ortiz (D-Sacramento, 6th 0District).
* Assembly Budget Subcommittee #1 on Health and Human Services Members:
Assemblymembers Mervyn Dymally (D-Compton, 52nd District) , Loni Hancock (D-Berkeley, 14th District), Ray Haynes (R-Murrieta, 66th District), John Laird (D-Santa Cruz, 27th District) and Robert Pacheco (R-Walnut, 60th District)

[CORRECTED 5/24]
SUMMARY OF BUDGET ISSUE : STATEWIDE STANDARDS TO LIMIT COMMUNITY-BASED SERVICES & FUNDING
(ALSO KNOWN AS PURCHASE OF SERVICES STANDARDS)
What the Governor Proposes:  Former Governor Davis proposed in 2002-03, and 2003-04 unsuccessfully, and the Schwarzenegger Administration for the third time, proposed a plan calling for a statewide "purchase of services standards" or limits for the budget that funds regional center funded community-based services. The Governor's May 13th revised budget proposal estimated savings (or a reduction to regional center community-based services budget) of $11.9 million for the 2004-2005, growing each year.  Some regional centers claim the proposed standards would actually increase costs - while other regional centers and advocates say the standards would mean a significant rollback in individual rights under the Lanterman Developmental Disabilities Services Act - considered the "civil rights act" for people with developmental disabilities, signed into law 35 years ago by then Governor Ronald Reagan.
What the Legislature Has Done as of 5/22/04 Saturday:
* 5/20/04 ASSEMBLY BUDGET SUBCOMMITTEE #1 on 5/20/04, voted 3-0 to REJECT the Governor's proposed state "purchase of services" standards (or limits), and instead, approved an unspecified or unallocated reduction of $11.9 million (state general funds)  to the regional center budget that funds community-based services (purchase of services).  [Note: This amount differs from the 5/22 Senate action].
Roll Call 5/20/04  -  (Approved to reject Governor's proposal/approve unallocated $11.9 million cut)
Voting AYE (3): Dymally (D), Hancock (D) and Laird (D)
Voting NO (0) :  N/A
OTHER (2) : Pacheco (R) and Haynes (R) were not present and did NOT vote.
* 5/22/04 SENATE BUDGET SUBCOMMITTEE #3  voted 3-2 to REJECT the Governor's proposed statewide standards for the regional center purchase of service budget and instead approved a $7 million reduction (unallocated or unspecified) to the regional center budget that funds community-based services.  Note: This reduction differs from the 5/20 Assembly action. ]Sen. McClintock made a motion just before that to approve the Governor's plan as proposed, which was defeated 2-3 (McClintock and McPherson voting AYE)
1st Roll Call Vote 5/22/04  (Defeated 2-3:  to APPROVE the Governor's proposal for statewide standards)
Voting AYE  (2)  -  McClintock (R) and McPherson (R)
Voting NO (3) -  Chesbro (D),  Cedillo (D) and Ortiz (D)
2nd Roll Call Vote 5/22/04 (Approved 3-2: to REJECT the Governor's proposal/approve unallocated $7 million cut)
Voting AYE (3)  - Chesbro (D),  Cedillo (D) and Ortiz (D)
Voting NO (2) - McClintock (R) and McPherson (R)
Note: the actual approval for the $7 million unallocated reduction came in the previous agenda item regarding regional center "baseline" costs, as revised May 13th by the Governor, including various temporary "cost containment" measures imposed last year.  Chesbro included the $7 million "unallocated reduction" to the regional center purchase of service or community-based services budget in that motion - as an alternative to imposing statewide standards or limits for regional center community-based services (purchase of services).
What Does The Legislature's Actions Mean as of 5/22/04:  Significant, though important early step in killing the Governor's proposal at least for the 2004-05 budget year.  Actions however are not final until a budget is passed and signed into law.  Because both houses' actions on this item were in agreement on the Governor's proposal for statewide standards or limits on community-based services and funding for children and adults with developmental disabilities  BUT differed on the action amount of the "unallocated" reduction to the regional center budget that funds community-based services.
Who This Impacts: Tens of thousands of children and adults with developmental disabilities (and their families) receiving community-based services funded through the 21 non-profit regional centers, the community-based organizations who actually provide the services, direct care and other workers.
Next Steps In Legislative Budget Process:
* The issue regarding the specific amount of the "unallocated" reduction will head to the joint budget conference committee. Technically, the issue of purchase of services standards as proposed by the Governor - rejected by both subcommittees, should not be a conference committee item, but anything can happen.
* The joint budget conference committee is likely to meet the week of May 30th, will be made up of 2 Democrats and 1 Republican from both the Assembly and Senate to resolve any differences in actions taken.
* Eventually - around mid to late June, both houses will take final votes on the full budget and related budget legislation (including those impacting IHSS, etc).  Most Capitol observers predict an on time budget - meaning a budget passed by the Legislature on or before June 30.  Until that happens - and until the Governor signs off on the budget and related legislation, nothing is final.