CA DISABILITY COMMUNITY ACTION NETWORK
CAPITOL NEWS REPORT - ISSUE #138-2004
Linking people to disability rights and unified action
Website: www.cdcan.org   Toll-free info Lines Up!
July 31, 2004- Saturday

GOVERNOR SIGNS BUDGET IN CAPITOL CEREMONY
* Use Line Item Veto On 40 Budget Items - No Major Surprises
* Reduces Mental Health Children's System Of Care Funding
* Family Empowerment Center Funding Increase Vetoed
* Major Medi-Cal Redesign Announcement Set For Monday

SACRAMENTO   -  Saying that "our plan to bring California back is working", Governor Arnold Schwarzenegger signed the $105.4 billion spending plan for 2004-05  this afternoon (Saturday, July 31) , in a ceremony held in the State Capitol Rotunda, officially bringing to a close a budget stalemate that lasted 31 days.  Using the power granted to him by the State Constitution, the Governor made changes and reductions to about 40 budget line items - though none of those were major surprises or have major impact to people with disabilities or seniors, with the exception of the Department of Mental Health's Children's System of Care funding (see below for details).  No changes or reductions - other than what was already passed by the Legsilature, were made by the Governor impacting community-based services for people with disabilities and seniors including In-Home Supportive Services, regional centers,  SSI/SSP, etc.  Funding for IHSS worker wages, public authorities and advisory committees, as previously reported, were fully restored in the budget earlier.  Funding for the IHSS Residual Program - which allows, under strict guidelines,  parents of children with disabilities and spouses of the elderly and people with disabilities to be their in-home worker, was previously put back into the budget in late April, with the State now seeking federal matching funds.

Claiming that the spending plan marked "another important achievement" for his economic recovery plan for the state, the Republican Governor  said that  "When I first presented my budget in January, I said a responsible budget was critical if we want to make California a  powerhouse once again, a budget that is balanced, a budget that makes reductions without
harming essential services, a budget that moves us toward structural reform, and a budget that does not raise taxes. I have
 just signed a budget for California that achieves all of this."

State Treasurer Phil Angelides, a Democrat who may run against Schwarzenegger in 2006, however criticized the spending plan in a press conference today, saying that "...it is not a win for the people of California - all who are being saddled with billions of dollars of debt for years to come."

Sweeping Changes To Medi-Cal Program To Be Announced Monday
Meanwhile, another major budget issue, which did not receive massive reductions this year, will be face what could be the most sweeping changes to the Medi-Cal program since it was established in 1965.  No details are available and it is not clear yet what exactly will be released when the announcement is made on Monday, August 2 (no exact time has yet been announced).
Another major announcement on a complete restructuring of state government departments and agencies - and how services are delivered by the state, is set officially for Tuesday, August 3.  Those recommendations, not yet formally embraced by the Schwarzenegger Administration, are contained in the California Performance Review - a project initiated last January by the Governor. Most of the major recommendations that were leaked out to the press two days ago, would likely require approval of the Legislature - and possibly even changes to the State Constitution.
The next Disability Rights Townhall Telemeeting, scheduled for August 4, Thursday afternoon at 1 PM (see CDCAN website for more information) will focus on Medi-Cal Redesign, and the California Performance Review as it impacts people with disabilities and seniors - and also a complete update on the State Budget.

A full CDCAN Capitol News Report on the budget as approved by the Governor  and its impact to people with disabilities and seniors will be sent out by Monday.

Summary Of All Line Item Vetoes Made By Governor Impacting People With Disabilities
* The Governor made changes, reductions and deletions to 40 different line items in the main budget bill, referred to as "line item vetoes" or using his "blue pencil" - a power granted by the State Constitution.
* The Governor - as expected - did not use his blue pencil (line item veto) on any budget item under the Department of Developmental Services (including regional centers, developmental centers), any budget item under the Department of Rehabilitation, or any budget item under the Department of Social Services tied to In-Home Supportive Services, SSI/SSP or Community Care Licensing.  Those budget items remain as the Legislature passed them earlier this week.
The following budget items - impacting people with disabilities or seniors had funding reduced by the Governor:

Family Empowerment Centers
Who This Impacts: Families with children with special needs, including developmental disabilities, who reside in those areas where funding for additional new centers were targeted.
Budget Item: 6110-161-089 - Department of Education - Local Assistance Budget (10.60.050.031-IDEA)
What The Governor Did 7/31/04:  Reduced  the budget item for Department of Education/Local Assistance from $1,091,674,000 to $1,090,974,000 by reducing specifically the funding for Family Empowerment Centers from $3,432,000 to $2,732,000, and by deleting also legislative budget language related to the funding increase.  The $700,000 reduction would have funded four additional new family empowerment centers.
Governor's Veto Message 7/31/04:  "I am deleting the legislative augmentation of $700,000 to establish four additional family empowerment centers. An increase in the number of centers is premature, as funding has been provided to conduct a study to evaluate the effectiveness of the twelve existing family empowerment centers. If the study shows these centers are effective in helping students with special needs, their families and schools, I will consider an augmentation to provide better access. I am deleting Provision 11 to conform to this action."

Mental Health - Children's System of Care Program
Budget Item: (1.5) 10.47–Community Services— Children’s Mental Health Services
What the Governor Did 7/31/04:  Reduced the Children's System of Care Program  from $20,000,000 to $350,000.  The $20 million was restored into the budget by legislative Democrats for this program, with the remaining $350,000 to be used to support the Cathie Wright Technical Assistance Center.
Governor's Veto Message 7/31/04: "I am reducing by $19,650,000 the $20,000,000 legislative augmentation to restore funding for the Children’s System of Care program. This action is necessary to help build a prudent reserve and bring ongoing expenditures in line with existing resources over the long term. $350,000 remains in this item for support of the Cathie Wright Technical Assistance Center, which provides training and technical assistance to counties to implement integrated health and human services programs. During favorable economic conditions, the State has been able to fund a higher level of services to address the mental health needs of children. With current limited resources, however, priority must be placed on the provision of direct and essential services to these children, which will continue to be provided by the Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) program and local county realignment funding. With current limited state resources, however, priority must be placed on the provision of direct and essential services to these children. By maintaining the Cathie Wright Technical Assistance Center, it is my hope that the enhanced coordination of services within counties can be maintained until the economic situation improves."

Mental Health Services - Match For Federal Rehabilitation Funds
Budget Item: 10.25–Community Services—Other Treatment from $1,439,054,000 to $1,438,746,000;
What The Governor Did 7/31/04:  Reduced the mental health community services (other treatment) budget item by $308,000 to that eliminates supplemental funding to 13 counties that is used to match federal rehabilitation funds due to limited state funding resources
Governor's Veto Message 7/31/04: "I am reducing this item by $308,000 to eliminate supplemental funding to thirteen counties that is used to match federal rehabilitation funds. This action prioritizes the limited funding available for other mental health programs that reach all or most counties, and is necessary to help build a prudent reserve and bring ongoing expenditures in line with existing resources over the long term."

Other Line Items Vetoes and Changes
* Domestic Violence Programs - approves $2,000,000 additional funding that the Legislature put into the budget for 10 domestic violence programs, but is directing the Office of Emergency Services (OES) to incorporate these funds into existing funding for domestic violence shelters and all the 10 shelters  to obtain funding through the grant process administered by OES.
Impact To People With Disabilities/Seniors: - and people with disabilities are often victims of domestic violence and abuse.
* Emergency Housing and Assistance Fund - reduced funding from $5.3 million to $4 million (a reduction of $1.3 million) added by the Legislature.
Impact To People With Disabilities/Seniors:  This fund provides funding to local agencies that provide homeless shelter beds and other services for the homeless.  While the great majority of those people with disabilities and seniors are not directly impacted, a number of homeless people do have mental health needs.
* Medi-Cal Pharmacy Compensation to HIV/AIDS Clinics - Reduced  budget item by $750,000 and related legislative language in the budget bill.
Impact To People With Disabilities/Seniors: No direct or immediate impact to most people with disabilities or seniors, however the issue of Medi-Cal reimbursements in general are important when viewed on how the Schwarzenegger Administration is looking at these and other Medi-Cal issues - especially in light of the soon to be announced major overhaul of the system next week.
Governor's Veto Message 07/31/04: "While I recognize the important services that these pharmacies provide to Californians living with HIV/AIDS, I am reducing this item by $750,000 and deleting this provision because providing additional Medi-Cal pharmacy compensation to HIV/AIDS clinics would create unacceptable program inequities that will lead to unnecessary litigation against the State. The budget will ensure that those suffering with HIV/AIDS will continue to have access to critically
important drugs. The concept of a reimbursement model that incorporates the features identified in this proposal should be considered as part of an overall analysis of Medi-Cal provider reimbursement. I am also deleting a $750,000 augmentation from the Federal Trust Fund in Item 4260-101-0890 to conform to this action."

NEXT STEPS
ASSEMBLY
* The State Assembly passed the budget bill - along with the budget related bills, 7/28/04 Wednesday , by a  bi-partisan vote of 69-11.
* Five Assembly Democrats opposed the spending plan, primarily objecting to the level of borrowing contained in the budget to bridge the shortfall including Assemblymembers Joe Canciamilla (D-Pittsburg, 11th District), John Dutra (D-Fremont, 20th District), Hannah-Beth Jackson (D-Santa Barbara, 35th District).
* Assembly has adjourned until Wednesday, August 4,  4:00 PM, taking off Monday and Tuesday to extend what is remaining of their summer recess (their original date of return was August 2).
* The Assembly Appropriations Committee - which will hear numerous bills, including key bills impacting people with disabilities, is still scheduled to holding a hearing Wednesday morning.
SENATE
* The State Senate approved the budget 7/29/04 on Thursday by a vote  of 28-11,   Four Republicans and 24 Democrats voted for the long delayed budget bill.
* Only Democrat to oppose the budget bill was Sen. Debra Bowen (D-Marina Del Rey, 28th District) .
* The Senate adjourned until Wednesday, August 4, 1:30 PM, except for Senate Appropriations Committee, which will meet at 10:00 AM that morning in Room 3191 (instead of meeting August 2).    Like the Assembly, the Senate is taking off Monday and Tuesday to extend what remains of their summer recess.
GOVERNOR
* Signed the main budget bill (SB 1113) on July 31, 2004, Saturday along with making changes (line item vetoes) to about 40 specific budget line items.
* He has not yet taken action on the other 20 budget related bills that are linked to the main budget bill (referred to as "budget trailer bills" because they follow or trail the budget bill).  The Governor cannot use his blue pencil or line item veto on these bills, because these bills do not make specific appropriations, but make changes to existing law or add additional legislative language to implement funding included in the main budget bill.
* The Governor  would have to either approve it, allow it to become law without his signature or veto the entire bill - something he is not likely to do, given that nearly all those bills are part of the over-all budget agreement reached with the Governor and legislative leaders earlier last Monday.
* Approval of the 20 or so budget related bills are likely to be completed over the next 14 days or so - a time frame that is normal for other Governors.

FOR MORE INFORMATION ABOUT CA DISABILITY COMMUNITY ACTION NETWORK
URGENT - CONTRIBUTIONS NEEDED TO CONTINUE EFFORT
CDCAN may soon have to close down! The advocacy effort toward the budget - and Medi-Cal Redesign and other critical issues has continued and there has not been the expected time to finalize proposals and connect with potential grants and other funding.  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.  Contributions from people and organizations is  very urgently needed to keep the advocacy efforts going for the next several months, as we work to establish non-profit status, which we can focus after the budget is signed.  Apologies to anyone who have not yet received a thank you - emails, letters, calls have been overwhelming!
Please make check or money order  to:  California Disability Community Action Network  (or abbreviate CDCAN).  A method to contribute by credit card (through Paypal) is NOW set up on our website, at www.cdcan.org.    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