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California Budget Deal Getting Closer 

CA DISABILITY COMMUNITY ACTION NETWORK
CAPITOL NEWS REPORT - ISSUE #117-2004
Linking people to disability rights and unified action
Website: www.cdcan.org   Toll-free info Lines Up!
June 27, 2004 - Sunday evening

No Meeting of Budget Joint Committee During Weekend - Budget Deal Near As Governor and Legislative Leaders Continue Discussions After Making Progress in Sunday Evening Closed Door Meeting

SACRAMENTO   - Governor Arnold Schwarzenegger and top legislative leaders in a Sunday evening (June 27) closed door meeting moved another major step closer  to a budget deal, resolving a key budget issue relating to state employee pensions.  The Governor and the four Senate and Assembly legislative leaders - called the "Big Five" still need to come to agreement on  two other major budget issues involving the Governor's previous deals to local government and its funding, and higher education.  Though progress is being made, it now appears likely that the budget will not be passed before the end of the budget year on June 30, due to the time for the full Legislature to review and take final action - though passage is expected within "a few days" of that deadline.

Summary of Developments This Weekend
CONFERENCE COMMITTEE - The budget joint committee - called a "conference committee" did not meet during the weekend, and will only convene when a budget deal is reached by the Governor and legislative leaders.  The conference committee, chaired by Sen. Wes Chesbro (D-Arcata, 2nd District)  has not met since June 10th.
STATE EMPLOYEE PENSION BENEFITS - The Governor and legislative leaders agreed to reduce pension benefits to new state workers for at two years - a plan that reportedly the California State Employees Association agreed to.  The plan would create a two tiered pension system for new state workers and for existing state workers, saving (or cutting from the new employee's point of view) the State $2.6 billion over 20 years.
BUDGET DEADLINE TO BE MISSED - Even though the Governor and the legislative leaders -  Senate President Pro Tem John Burton (D-San Francisco, 3rd District), Assembly Speaker Fabian Nunez (D-Los Angeles, 46th District), Senate Republican Leader Dick Ackerman (R-Irvine ) and Assembly Republican Leader Kevin McCarthy (R-Bakersfield, 32nd District), are coming very close to a budget deal, with less than 3 days left before the end of the 2003-2004 budget year (June 30), it does not appear possible now to pass a budget before that deadline. The Governor and all four legislative leaders now expect to pass a budget within a few days of the start of the new budget year, which begins on July 1, Thursday, which would allow sufficient time for the budget conference committee - and the full legislature to review and take final action.
IMPACT OF DELAY TO PEOPLE WITH DISABILITIES/SENIORS -
* Barring any unforeseen last minute problems, the Governor and legislative leaders - and nearly every Capitol observer believes a budget will be passed within a few days of the new budget year, which begins July 1.  Though that means a delay of a few days into the new fiscal year - the delay itself will have almost no direct impact to the services, supports and programs that children and adults with developmental and other disabilities, including people with traumatic brain injuries, and seniors receive. There should be no direct impact, with a delay of several days, to any communty-based organizations, including regional centers, independent living centers, or state operated facilities.
* If  unexpectedly the discussions with the Governor and legislative leaders break down - considered unlikely - and a stalemate develops for several weeks, then people with disabilities and seniors would be impacted.
* There will be an impact however, once a budget is signed, since most of the reductions or changes are effective as of July 1, 2004 - especially for the "cost containment" measures that will continue for community-based services for children and adults with developmental disabilities, funded through the 21 regional centers.  The "Quality Assurance Initiative" for In-Home Supportive Services" would also take effect during the new budget year.
* As previously reported, it is believed that the budget will continue to include State support for wages for IHSS workers - and also for county public authorities and public authority advisory committees in exchange for the Quality Assurance Initiative and possibly a wage increase freeze.  In addition, the budget should also continue to contain restored funding for the cost of living adjustments, both state and federal, for SSI/SSP.

NEXT STEPS
NO DEADLOCK - Unlike in previous years, barring a collapse in discussions - there isn't a deadlock within the Legislature or with the Governor that held up passage of a budget in 2001, 2002 and 2003 - at least as of now there isn't.
BUDGET CONFERENCE COMMITTEE -
* The budget conference committee, which is composed of a total of 6 members, 3 each from the Assembly and Senate and is charged with only working out a solution to different actions taken by both houses on a budget item - though in their final meeting they will essentially "rubber stamp" what the leadership and Governor agreed to in a  single meeting, before turning over the budget and related bills over to the full Assembly and Senate for final action.
* Normally the budget conference committee meets to resolve the remaining outstanding issues where both houses took different actions on a budget item. Those issues include In-Home Supportive Services Quality Assurance Initiative and the budget related legislative language establishing guidelines on how the IHSS Residual Program is be implemented with new federal matching funds; Regional Center operations budget reductions;  transition planning for closure of Agnews Developmental Center, and several special education issues
* The Legislative leadership could decide not to hold another conference committee meeting, and simply amend the agreed changes and revisions into the Assembly bills that contain the proposed budget,  for a final vote on the Assembly floor - and then for a final vote on the Senate floor - and then to the Governor. In theory, that process could happen in a single day.
GOVERNOR & POLITICS -
* The delay in passage of a budget before the end of the budget year is seen by some as a setback for the Governor, who pledged in his campaign last fall to change "business as usual" in Sacramento, and promised on time budgets.
* Other observers however feel that if a budget is passed within a few days of July 1 - and most participants involved in budget negotiations feel that is likely - then there will be little negative political fall-out for the Governor, who is likely to claim it is still improvement when compared to budgets passed under Governor Gray Davis.
* The Governor's California Performance Review report is scheduled to come out on June 30th, which could have major impact on programs that serve people with developmental and other disabilities, people with traumatic brain injuries and seniors - though its possible that report could be delayed until the budget is passed.  Another major proposal - the Medi-Cal Redesign/Reform proposal is scheduled to be released to the Legislature on August 2 - though there are some rumors that the release date might be postponed.

FOR MORE INFORMATION ABOUT CA DISABILITY COMMUNITY ACTION NETWORK
*  PLEASE! HELP NEEDED URGENTLY! CONTRIBUTIONS NEEDED TO CONTINUE EFFORT!
As  of  6/27/04, many many, thanks again,  to the friends, people with disabilities and their families, community organizations and others who have sent in generous and needed contributions and donations.  As mentioned before, individual thank you letters are now being sent out (due to workload have been delayed!). However, until grant funding is finalized, contributions from people and organizations is still very urgently needed to keep the advocacy efforts going for the next several months. Please make check or money order  to:  California Disability Community Action Network  (or abbreviate CDCAN). CDCAN is not yet a non-profit organization but will be soon.  Send contributions to: California Disability Community Action Network,  1225 8th Street Suite #480, Sacramento, CA  95814.  A method to contribute by credit card (through Paypal) is NOW set up on our website, at www.cdcan.org.
* Who Is CDCAN?
The California Disability Community Action Network is a non-partisan link to thousands of Californians with developmental and other disabilities, their families, community organizations and providers, direct care and other workers, and other advocates. These action alerts and news reports is for all of them. In addition it also goes to news organizations, state and local government officials and staff.
* How To Receive CDCAN Capitol News Reports and Alerts
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  OR sign up via the CDCAN website at www.cdcan.org.   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!
* How To Contact CDCAN
Marty Omoto, director/organizer  -  California Disability Community Action Network   WEBSITE: www.cdcan.org 
1225 8th Street Suite 480 Sacramento, CA 95814   VOICE PHONE: 916/446-0013
FAX number: 916/446-0026        email: martyomoto@rcip.com 
INFO HOTLINE TOLL FREE NUMBER: 1-877-260-0267 (cannot leave messages) SAME INFO HOTLINE FOR SACRAMENTO AREA:  486-4652
 

Last Updated on 06/28/04   webmaster@namiscc.org

 

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