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CA DISABILITY COMMUNITY ACTION NETWORK
CAPITOL NEWS REPORT - ISSUE #121-2004
Linking people to disability rights and unified action
Website: www.cdcan.org   Toll-free info Lines Up!
July 2, 2004 - Friday late afternoon

NO STATE BUDGET LIKELY UNTIL NEXT WEEK
* LOCAL GOVERNMENT FUNDING ISSUE BLOCKS BUDGET DEAL
* LEGISLATURE ADJOURNS - COULD RETURN DURING WEEKEND
* DELAY OF BUDGET DOESN'T IMPACT PEOPLE WITH DISABILITIES - YET

SACRAMENTO   -  California is likely to continue probably a week more  into the new fiscal year without a budget, with Governor Arnold Schwarzenegger and the top legislative leaders deadlocked for now on the issue of local government funding.

The Governor and the top legislative leaders from both parties were late last night very close to a budget deal, but were at a stalemate late Friday afternoon, with Democrats opposing - unless changed - the Governor's agreement with local government.
Despite the impasse, a budget deal still seems likely by early next week - with a final vote by the full Legislature later in the week.  The joint budget committee (conference committee), chaired by Sen. Wes Chesbro (D-Arcata, 2nd District) did not meet today - nor will it meet Saturday or Sunday.  The budget conference committee however could possibly meet on Monday, July 5th, upon the call of the chair.

While local government funding - and reductions by the State, has impact to county and city services and programs for people with disabilities and seniors - no other budget issue remains unresolved that has direct impact on a statewide level to people with disabilities or seniors.

IMPACT TO PEOPLE WITH DISABILITIES/SENIORS DUE TO BUDGET DELAY
*  Most Capitol observers - and legislative leaders, still believe that a budget deal will be made soon - with passage within the next week. Though that means a delay of about a week 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 community-based organizations, including regional centers, independent living centers, or state operated facilities. No hold up in payments or reimbursements are anticipated.
* If  unexpectedly,  the discussions with the Governor and legislative leaders break down completely - considered unlikely - and a long stalemate develops for several weeks, then people with disabilities and seniors would be significantly impacted as the State begins to cut off payments and reimbursements.
* 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.

NEXT STEPS
Budget Deal
* Even when the Governor and top legislative leaders come a final agreement on the budget - the budget conference committee likely will still need to meet to formally sign-off on many other unresolved issues in what will likely be a short one day meeting
* That would be followed by the full Senate and full Assembly taking up the budget and budget related bills for consideration and approval - and then to the Governor.
* Any budget would need approval of 2/3rds of both the Senate and Assembly before going to the Governor.
* The entire process can take possibly 7-10 days.
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" or formalize 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. None of these issues have had any final action taken yet but will be quickly approved.
* 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.

Status of Some Key Budget Issues Impacting People With Disabilities:

COMMUNITY-BASED SERVICES: IN-HOME SUPPORTIVE SERVICES
In-Home Supportive Services Residual Program
Latest Status:
* 07/02/04 - This was not an unresolved issue discussed by the Governor and the legislative leaders. Approval of the State's proposal to the federal government for federal matching funds for the IHSS Residual Program is very near. The Governor's proposal seeks an exception or waiver to existing Medicaid regulations for federal matching funds to support the IHSS Residual Program, that would also reverse his earlier proposal to eliminate the IHSS Residual Program.
* Late May - Both house budget subcommittees took identical actions in May approving the Governor's proposal - a proposal he submitted after he backed off on April 22, from his original November proposal to eliminate the entire program.
Next Steps: On a separate track, the budget conference committee still needs to give final approval of budget related legislative language that assures continuation of existing benefits and eligibility, as the program shifts to one that is supported by federal funds.
Prospects: The IHSS Residual Program will continue - and should continue with the same eligibility and benefits. One question is what the Governor allocated for the state's share to fund the Residual Program, which was based on the assumption that his other proposals to cut the State's contribution to wages, would be enacted.
In-Home Supportive Services "Quality Assurance Initiative"
Latest Status:
* Early June - The amount of the reduction to the IHSS budget (over $19 million cut - or savings if seen from the State's viewpoint) was previously approved by the Budget Conference Committee.
Next Steps: Budget Conference Committee needs to give approval for the specific budget related legislative language to implement this cost containment measure to assure that a person's needs and right to IHSS services are respected.
Prospects: This will be approved - and is an important part of the "compromise" that the Administration is agreeing to on the IHSS worker wage issue.
IHSS worker wages (State contribution to wages/benefits above the State minimum wage); requirements for a employer or record (public authorities) and also the requirement for public authority advisory committees
Latest Status:
* 07/02/04 -  Though not officially announced, the Governor reportedly has backed off from this proposal - and barring a surprise, these items will be restored in the budget.  This means wages will not be rolled back - and public authorities and advisory committees will not be eliminated.
* Late May  - Both house budget subcommittees REJECTED the Governor's proposals that would have had the impact of rolling back IHSS worker wages and benefits to the state minimum wage, and also have the impact of eliminating county public authorities and advisory committees.
Next Steps: Still needs final vote by the full Assembly and Senate, as part of the final budget (and budget related bills).
Prospects: It seems these items are safe in the budget now - though nothing is really certain until the Legislature passes and the Governor signs the budget bill - and all the budget related pieces of legislation.

COMMUNITY-BASED SERVICES: REGIONAL CENTERS
Statewide standards or limits on community-based services funded through regional centers (also known as "purchase of service standards)
Latest Status:
* 07/02 - This was not an unresolved issue discussed among the legislative leaders and Governor
* Late May - The budget subcommittees rejected the Governor's proposal - and the budget conference committee approved a $7 million "unallocated reduction" instead. Advocates claimed the proposed limits (or standards) would have meant a significant rollback in the rights of individuals with developmental disabilities under the Lanterman Developmental Disabilities Services Act - the California civil rights act for people with developmental disabilities.
Next Steps:  The unallocated (or unspecified) reduction of $7 million - plus continuation of last year's "cost containment" measures totaling about $67 million, still needs final approval (as part of the final budget and budget related bills) by the full Assembly and Senate.
Prospects:  This proposal - unless there is a major surprise - is dead, at least for this year (like it was in 2002-03, and 2003-04). The unallocated reduction of $7 million - and the continuance of the cost containment (or reductions) measures is a done deal.
Regional Center Operations Budget Reduction
Latest Status:
* 07/02/04 - This was not an unresolved issue discussed among the legislative leaders and Governor
* Early June -  The budget conference committee approved the size of the reduction, ($6,458,000) but left open still how the cut will be applied to each of the 21 non-profit regional centers who fund community-based organizations who provide the services and supports to children and adults with developmental disabilities across California.
Next Steps: The budget conference committee still needs to resolve how the cut will be applied - including approving legislative budget bill related language. Compromise language has been proposed and will likely be approved.
Prospects: Compromise legislative language was nearly passed the week of June 7th by the budget conference committee - but Sen. Ross Johnson wanted more to consider other ways to apply the reduction.  It seems likely that the compromise language will be approved, which spreads the cuts out as they have in the past, with some performance or outcome reviews required next year.
Parenta/Family Copayment/Share of Cost for regional center services:
Latest Status:
* 07/02/04 - This was not an unresolved issue discussed among the legislative leaders and Governor
* Late May - Both budget subcommittees approved a significantly modified version of a share of cost plan, that included fair hearing provisions, over the strong objections of the Schwarzenegger Administration.  The proposed trailer bill language remains the same as passed by the Senate in May - with the inclusion of a provision, requested by the Administration, to sunset (or to end) the family share of cost program 18 months after it goes into effect. (at the end of June 2006, with all provisions inoperative by January 1, 2007)
Next Steps: Still needs final vote by the full Assembly and Senate, as part of the final budget (and budget related bills).
Prospects: This is a done deal now.  The Administration has apparently given up in trying to eliminate the fair hearing provisions in the plan - that the Senate put in - but is pushed for a 18 month sunset on the entire family share of cost plan - presumably so that in 2007-2008 budget year, the Administration can propose a new plan without fair hearings.
Agnews Developmental Center Closure Transition Plan To Move Residents To Sonoma:
Latest Status:
* 07/02/04 - This was not an unresolved issue discussed among the legislative leaders and Governor
* Late May - Both the Senate and Assembly budget subcommittees rejected the Administration efforts to develop a transition plan for the closure of Agnews Developmental Center, that would have included the temporary transfer, for about 2 years, of approximately 200 or so residents, to Sonoma Developmental Center - and the allocation of funds to improve that facility to receive those residents. The Senate proposed language has some slight changes - and is likely to be approved.
Next Steps: The budget conference committee still needs to take final action on the specific budget legislative language that  seeks transition to the community - and not to Sonoma Developmental Center, assuming the closure of Agnews Developmental Center in 2006. The Administration wants the legislative budget language to be flexible and allow for option of moving some residents to Sonoma.
Prospects: Every constituent group - including parents with children in developmental centers - including those at Agnews, other
community advocacy organizations, regional centers opposed the Administration's proposal to transfer 200 people to Sonoma
Developmental Center.  The Senate version of the legislative language - or very something very close to it - will likely be approved.

SUPPLEMENTARY SECURITY INCOME/STATE SUPPLEMENTARY PROGRAM (SSI/SSP)
* SSI/SSP:
What the Governor Proposed In January:
* Proposed to eliminate (or suspend)  the State Supplementary Program (SSP) 2004-2005 cost of living adjustment (COLA) representing a savings to the State (and a cut to SSI/SSP recipients) totaling $84.6 million in general fund dollars and also withhold the federal Supplemental Security Income (SSI) cost of living adjustment, saving $62.5 million state General Fund dollars.
* SSI/SSP provides cash grants to people with disabilities, the elderly , the blind and people with disabilities that prevent them from working, who also meet strict federal income and resource eligibility.  About 1.2 million people receive SSI/SSP, 2/3rds who are people with disabilities.  SSI/SSP currently pays an individual $790 a month and $1,399 for couples.  The cost of living adjustments would raise those amounts to $812 for an individual and $1,438 for couples.
Latest Status:
* 07/02/04: Though not officially announced, legislative leaders and the Governor reportedly agreed yesterday to a three month delay of implementing the state and federal SSI/SSP cost of living adjustment. The Governor reportedly backed off on his proposal for a complete elimination of the cost of living adjustments for 2004-2005. - though nothing is final until a budget is passed and signed into law.
* Late May: Both house budget subcommittees voted in May to reject the Governor's proposed cuts, and restored funding in the budget.
Next Steps:
* Still needs final vote by the full Assembly and Senate, as part of the final budget (and budget related bills).
Prospects: Restoration of this cut was a big issue for Senate President Pro Tem John Burton (D-San Francisco) - though the three month delay in implementing the cost of living adjustment was a surprise to some advocates.

A full CDCAN Capitol News Report on the status of all budget items impacting children and adults with developmental and other disabilities, people with traumatic brain injuries, seniors, people with mental health needs will be issued when a budget is passed by the Legislature or as needed.

FOR MORE INFORMATION ABOUT CA DISABILITY COMMUNITY ACTION NETWORK
*  PLEASE! HELP NEEDED URGENTLY! CONTRIBUTIONS NEEDED TO CONTINUE EFFORT!
As  of  7/2/04, 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 07/05/04   webmaster@namiscc.org

 

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