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CDCAN

December 9, 2008

California budget crisis

Senate Budget Committee hearing schedule

* Dec 10th – Health Issues (Medi-Cal, Regional Centers, etc)
* Dec 10th – Education Issues (including special education)
* Dec 11th – Human Services (IHSS, SSI/SSP, CalWORKS, etc)

Will Review and Hear Mid-Year Budget Cuts and Revenue Increases Proposed by Governor (on November 6th) and Legislative Democrats (on November 25th) and Also Any Legislative Republican Mid-Year Budget Proposals -  No Assembly Budget Subcommittee Hearings Scheduled Yet – Full Assembly Budget Committee May Meet December 11th

SACRAMENTO  (CDCAN) – As reported yesterday in a previous CDCAN Reports, an important budget subcommittee –  the Senate Budget Subcommittee #3 on Health and Human Services,  chaired by Sen. Alex Padilla (Democrat – Los Angeles) has scheduled two separate hearings this week  to review proposals to close the over $11 billion budget deficit, with major permanent cuts and other changes to the current State budget that if approved – would go into effect March 1, 2009 or sooner:

  • December 10th covering health related proposals including proposed mid-year budget reductions and changes to Medi-Cal and regional centers that were proposed by the Governor (on November 6th) and Legislative Democrats (November 25th). Any proposals for mid-year budget changes and reductions impacting these programs by Legislative Republican will also be reviewed.
  • December 11th covering human service related proposals including mid-year budget reductions and changes to In-Home Supportive Services (IHSS), SSI/SSP (Supplemental Security Income/State Supplemental Payment), CalWORKS, Cash Assistance Program for Immigrants that were proposed by the Governor (on November 6th), and Legislative Democrats (on November 25th). Like on December 10th, the subcommittee will also review any proposals for mid-year budget changes and reductions impacting these human service programs by Legislative Republicans. 

Education issues – which includes major funding cuts proposed by the Governor and also by Legislative Democrats that will likely impact significantly special education programs – is scheduled for December 10th by the Senate Budget Subcommittee #1 on Education.    Transportation funding proposals will be heard December 11th.

It is not known yet what action – if any – the Senate budget subcommittees will take – though it doesn't appear that any of the subcommittees will take final actions this week

The Senate Budget Subcommittee #3 on Health and Human Services, like its counterpart in the Assembly (called the Assembly Budget Subcommittee #1 on Health and Human Services) reviews most of the major budget issues impacting programs and services for people with disabilities, mental health needs, seniors, low income families and community organizations, facilities and workers who provide supports and services including those impacting regional centers, In-Home Supportive Services (IHSS), SSI/SSP, CalWORKS, senior programs, Medi-Cal, Healthy Families and other human service and health programs. 

No agendas are yet available for any of the hearings, but time for public testimony is expected to be allowed, though likely brief.  Dates, times and agenda items for any of the subcommittee hearings are subject to changes – CDCAN will report any such changes as soon as information is available. 

No Budget Hearings Scheduled Yet By Assembly

As of Tuesday morning (December 9th), the Assembly has not yet released any hearing information for their budget subcommittees – whose memberships have yet to be announced.  The full Assembly Budget Committee, chaired  by Assemblymember Noreen Evans (Democrat – Santa Rosa) may hold a hearing on the budget crisis on Thursday, December 11th, though that is not official yet and no further details are available.  Members of the full Assembly Budget Committee – beyond the chair – have not yet been officially announced yet by Assembly Speaker Karen Bass (Democrat – Los Angles

Budget Crisis Enormous Impact on People With Disabilities, Seniors and Others

The growing budget crisis and cash flow crisis has enormous impact on children and adults with disabilities – including those with developmental disabilities including autism spectrum disorders, people with mental health needs, seniors, low income children and families, veterans with mental health needs and disabilities, community organizations, facilities, and workers who provide supports and services throughout California.  

In addition, scores of California counties and cities are facing major budget deficits at the same time that is having a major impact to the same population.

CDCAN will be issuing a CDCAN Action Alert urging people to attend the subcommittee hearings – and to send in letters and comments. 

SENATE  BUDGET SUBCOMMITTEE HEARING SCHEDULE FOR THIS WEEK

The Assembly Budget Committee is tentatively (and unofficially) scheduled to hold a hearing on December 11th on the budget crisis, but there are no specific details and it is possible the hearing could be changed, so it is not listed below yet.  Please note that budget subcommittee hearing dates, times and subject matter are always subject to last minute changes.  See below for membership of the various Senate budget subcommittees. 

These are the first public hearings scheduled on the specific cuts and revenue increases that the Governor proposed on November 6th, and that Legislative Democrats later revised and put up for a floor vote on November 25th without any public hearings.  The Assembly Budget Committee did meet early in November, but it took no public testimony and only examined the general proposals and no specific proposals  and focused discussion on the size of the budget shortfall and cash flow crisis  as reported by the Legislative Analyst.

While Legislative Democrats are expected to revise their proposals for mid-year cuts, revenue increases, proposals to improve the economy, the Governor is not expected to make any other proposals for mid-year budget reductions or revenue increases – other than what he proposed on November 6th - until January 10th, when he releases his proposed budget for 2009-2010. 

So far the Legislature has not approved  – nor has held any hearings – on any of the mid-year budget proposals that call for cuts and also call for various increases to revenues. 

DECEMBER 10, 2008 (WEDNESDAY)

SENATE SUBCOMMITTEE#3 HEALTH, HUMAN SERVICES, LABOR & VETERANS AFFAIRS

09:00 AM - State Capitol – Room 4203

What Will Be Heard: Health proposals (including Medi-Cal and regional centers)

CDCAN Note: Human service proposals – including In-Home Supportive Services (IHSS) will be heard on Thursday, December 11th. This subcommittee hearing is part of the special session of the Legislature (called by the Governor on November 6th).  These are proposal for mid-year budget reductions dealing with health programs (Medi-Cal) as proposed by the Governor on November 6th, and also health related proposals made by Legislative Democrats on November 25th and any Legislative Republican health related proposals.

PRIORITY: VERY HIGH 

DECEMBER 10, 2008 (WEDNESDAY)

SENATE SUBCOMMITTEE #1 ON EDUCATION

1:30 PM - State Capitol - Room 112

What Will Be Heard:

* Kindergarten through 14th grade educational mid-year budget proposals
* Higher education mid-year budget proposals

CDCAN Note: This subcommittee hearing is part of the special session of the Legislature (called by the Governor on November 6th).  These are proposal for mid-year budget reductions dealing with education programs  as proposed by the Governor on November 6th, and also education related proposals made by Legislative Democrats on November 25th and any Legislative Republican education related proposals,  The funding includes money that funds special education programs for over 650,000 students in California in special education programs..

PRIORITY: VERY HIGH 

DECEMBER 11, 2008 (THURSDAY)

SENATE BUDGET SUBCOMMITTEE #3 ON HEALTH, HUMAN SERVICES, LABOR & VETERANS AFFAIRS

09:00 AM - State Capitol – Room 4203

What Will Be Heard: Human Service proposals (including In-Home Supportive Services, SSI/SSP, CalWORKS, Cash Assistance Program for Immigrants)

CDCAN Note: Health  proposals – including Medi-Cal, Healthy Families  and regional centers  will be heard on Wednesday (December 10th). This subcommittee hearing is part of the special session of the Legislature (called by the Governor on November 6th).  These are human service proposals for mid-year budget reductions  as proposed by the Governor on November 6th, and also human service related proposals made by Legislative Democrats on November 25th and any Legislative Republican human service related proposals.

PRIORITY: VERY HIGH 

DECEMBER 11, 2008 (THURSDAY)

SENATE BUDGET SUBCOMMITTEE #4 ON STATE ADMINISTRATION, GENERAL GOVERNMENT, JUDICIAL, TRANSPORTATION AND CORRECTIONS

10:00 am - State Capitol – Room 112

* State Administration Proposals
* General Government Proposals
* Local Government Proposals
* Transportation Proposal

CDCAN Note: This subcommittee hearing is part of the special session of the Legislature (called by the Governor on November 6th).  These are proposals including those impacting transportation funding,  for mid-year budget reductions  as proposed by the Governor on November 6th, and proposals made by Legislative Democrats on November 25th and any Legislative Republican related proposals.

PRIORITY: HIGH 

DECEMBER 11, 2008 (THURSDAY)

SENATE BUDGET SUBCOMMITTEE #.2 ON RESOURCES, ENVIRONMENTAL PROTECTION AND ENERGY

1:00 PM - State Capitol – Room 3191

* Resources Proposals

PRIORITY: FYI

DECEMBER 12, 2008 (FRIDAY)

SENATE BUDGET SUBCOMMITTEE #5 ON REVENUES AND THE ECONOMY

09:30 AM - State Capitol – Room 4203

* Revenue and Economic Proposals

CDCAN Note: This subcommittee hearing is part of the special session of the Legislature (called by the Governor on November 6th).  These revenue increase proposals (including proposal to increase temporarily the state sales tax)  for mid-year budget reductions  as proposed by the Governor on November 6th, and also revenue increase proposals (include restoring vehicle license fee back to 2003 level)  made by Legislative Democrats on November 25th and any Legislative Republican revenue and economic  related proposals.  Also proposals regarding improving the State's economy will be reviewed.

This hearing is important because the Governor and Legislative Democrats have pushed for a mixture of major spending cuts and revenue increases that include increases in some taxes – though the proposals differ on what taxes and fees would be increased.  Legislative Republicans are opposed to such increases saying that raising taxes during a bad economic time will only make worse the economic situation.  Failure to approve new revenues – whether through taxes or new federal money or a combination of both would mean that spending reductions would have to be billions of dollars higher. 

PRIORITY: VERY HIGH 

DECEMBER 12, 2008 (FRIDAY)

SENATE BUDGET SUBCOMMITTEE #4 ON STATE ADMINISTRATION,,GENERAL GOVERNMENT, JUDICIAL, TRANSPORTATION AND CORRECTIONS

10:00 AM - State Capitol – Room 112

* Corrections
* Judicial Branch
* Local Law Enforcement Subventions
* Department of Justic
* Other Public SafetY

PRIORITY: FYI

Governor Made Proposal November 6th – Democrats on Novemer 25th

The Governor proposed on November 6th major cuts – about $4.5 billion in permanent and immediate cuts to the current budget and just about $4.7 billion in new revenues including a temporary 3 year increase in the state sales tax.   The cuts the Governor proposed included 3% reduction in payments to providers funded by regional centers, and a 3% cut to regional center operations, permanent elimination of several Medi-Cal optional benefits including adult dental, elimination by March 1, 2009 of the Cash Assistance Program for Immigrant, rollback of grants for SSI/SSP to the lowest level allowed by the federal government (maintenance of effort), rollback of the state matching funds (or participation) for In-Home Supportive Service worker wages and benefits to the state minimum wage (meaning that is the highest wage level the State will provide matching funds for), reductions or changes in eligibility for certain IHSS domestic and related services, certain parts of the Medi-Cal program, including those serving immigrants, reduction to CalWORKS grants. 

The Legislative Democrats proposed cuts and revenue increases that omitted several of the major reductions (including Medi-Cal and IHSS), kept some the same (regional centers), changed or modified the cuts to others (SSI/SSP, CalWORKS) and proposed totally different package of revenue increases (vehicle license free restoration back to 2003 level). 

Legislative Republicans have not put forward formally a package of proposals addressing the mid-year budget crisis, other than to point back to the proposals from summer and early fall with proposals that called for controlling spending or proposed making further major reductions.  Legislative Republicans have opposed – and continue to oppose proposals that call for tax increases – and also restoration of the vehicle license fee – saying doing so would have a dramatic negative impact on the state's already bad economy.  They have pushed proposals that call for greater oversight of various programs, including stronger measures looking for waste, fraud and abuse,.

It should be noted that these proposals for mid-year reductions and revenue increases do not include what will likely be additional major cuts and changes to programs and services, including those impacting people with disabilities, mental health needs, seniors and low income children and families, that will be proposed for the 2009-2010 State budget year that begins July 1, 2009.  The Governor will be releasing his proposed budget for that year on January 10th.

See separate CDCAN Report later today for a comparison of the different proposals. 

LIST OF SENATE BUDGET SUBCOMMITTEE MEMBERS AND CHAIRS

SENATE BUDGET SUBCOMMITTEE #1 ON EDUCATION

CHAIR: Sen. Gloria Romero, (D)
Sen. President pro Tem Darrell Steinberg (D)
**Sen. Majority Leader Dean Florez (D)
**Sen. Jenny Oropeza (D)
**Sen. Carol Liu (D)
**Sen. Mark Wyland (R)
**Sen. Abel Maldonado (R)
**Sen. Mimi Walters (R) 

CDCAN COMMENT:

** means this is a new subcommittee member (did not serve on it in 2007-2008 session).

This subcommittee also deals with funding for special education. The subcommittee last session was chaired by termed out Sen. Jack Scott

SENATE BUDGET SUBCOMMITTEE #3 ON HEALTH AND HUMAN SERVICES

CHAIR: Sen. Alex Padilla, (D)
**Sen. Mark Leno (D)
**Sen. Gilbert Cedillo (D)
Sen. Elaine Alquist (D)
**Sen. Leland Yee (D)
**Sen. Dave Cox (R)
**Sen. Bob Huff (R)
**Sen. Sam Aanestad (R)

CDCAN COMMENT:

** - means this is a new subcommittee member who did not serve on it in the 2007-2008 session.

This subcommittee was chaired in 2007-2008 session by Sen. Alquist, who remains on the subcommittee but was appointed to chair the Senate Health Committee (replacing termed out Sen. Sheila Kuehl)

ALSO:

SENATE BUDGET SUBCOMMITTEE #4 ON STATE ADMINISTRATION, GENERAL GOVERNMENT AND CORRECTIONS

CHAIR: Sen. Mark DeSaulnier, (D)
Sen. Rod Wright (D)
Sen. Gloria Negrete McLeod (D)
Sen. Loni Hancock (D)
Sen. Christine Kehoe (D)
Sen. George Runner (R)
Sen. John Benoit (R)
Sen. Tom Harman (R)

CDCAN COMMENT:

This subcommittee deals with transportation funding that is important to people with disabilities, mental health needs, seniors. It was chaired during the 2007-2008 session by termed out Sen. Mike Machado

SENATE BUDGET SUBCOMMITTEE #5 ON REVENUES AND THE ECONOMY
CHAIR: Sen. Denise Ducheny,  (D)
Sen. Lou Correa (D)
Sen. Ron Calderon (D)
Sen. Ellen Corbett (D)
Sen. Lois Wolk (D)
Sen. Robert Dutton (R)
Sen. Jeff Denham (R)
Sen. Tony Strickland (R

CDCAN COMMENT: this is a totally new Senate budget subcommittee