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Disability Rights California

November 6, 2008

Quick & dirty analysis of Governor’s budget – special session 2008-2009

On Thursday, November 6, 2008, Governor Schwarzenegger released a plan to fix a budget gap in the current year budget and called a special session of the legislature to consider his plan. This year's budget shortfall is approximately $11.2 billion dollars. Saying that California has both a spending problem and a revenue problem, he wants to cut spending by $4.5 billion and increase income by $4.7 billion.

He proposed several ways to increase state income:

  • temporarily increase the sales tax by 1.5 percent
  • broaden the sales and use tax to include certain services, like appliance and furniture repair, vehicle repair, golf, veterinary services, amusement parks and sporting events
  • tax oil producers who take oil from California’s earth and waters
  • increase taxes on alcoholic drinks by 5 cents a drink
  • increase vehicle registration fees by $12

What follows is a summary of the spending reductions that will impact people with disabilities.

The Governor proposed many of these same cuts earlier this year. The legislature rejected the cuts because of their harsh impact on Californians with low incomes, including people with disabilities. The current list is just as bad – even worse - and should be rejected in favor of more ways to increase the state’s income.

If enacted, the multiple and drastic cuts will make it more difficult if not impossible for people with disabilities to live independent and productive lives in their communities.

Developmental Disability Services

The Governor wants to lower payments to regional center service providers by 3 percent beginning December 1, 2008.

  • Some payments will not be reduced, such as supplemental rent payments for people receiving supported and independent living services, and usual and customary payments for services like bus fares. Other payments will not be reduced if higher payments are needed to keep a person healthy and safe.
  • These reductions may mean many service providers who have been subject to rate caps for a number of years may go out of business leaving regional center clients with fewer or no options for needed services.

The Governor wants to reduce some regional center reporting requirements related to staff salary schedules and contract expenditures and allow larger client to service coordinator ratios.

  • The client to service coordinator ratio will stay the same for clients on the federal Home and Community Based Services Waiver, who are 3 or younger in the Early Start Program, or moving from a developmental center into the community.
  • The larger client to service coordinator ratios may mean less attention to clients and higher turnover in staff due to increased work loads. Clients may not receive needed services to remain in the community.

Education

No specific cuts are being made to special education. However, the cuts to general education are large and will have an impact on general education teachers and services that special education students also need, such as access to regular education programs.

Mental Health Services

The governor did not propose any cuts to mental health programs. However there are some proposed cuts that may affect people with a diagnosis of mental illness who are not eligible for Medi-Cal services from county mental health departments, such as eliminating Medi-Cal coverage for psychological services.

Other programs the Governor will not cut, but will change how they are funded. He wants to give some programs their own sources of income, instead of getting money from the general fund. This way they will not be affected by bad budget years. He wants to increase taxes on alcoholic drinks by 5 cents a drink. However, funding programs this way does not guarantee that the revenue will be high enough to maintain services.

  • This increase will help make sure Prop 36 drug treatment services, instead of jail time, will continue for nonviolent drug offenders.
  • This increase will help make sure people who are on Medi-Cal and get drug treatment services through the Drug Medi-Cal program will continue to get these services.

Public Benefit Programs

In 1999, the US Supreme Court, in the Olmstead decision, said unnecessary institutionalization of people with disabilities is illegal under the Americans with Disabilities Act. California has to follow that decision. Budget cuts that make people leave their homes and go into institutions will move California backwards in complying with the Olmstead decision.

This is a list of most of the big cuts in Health and Human Services and their impact on people with disabilities. The governor proposes to enact these changes by December 1, with implementation by March 1.

Medi-Cal

The governor proposes to eliminate these Medi-Cal optional1 services: as dental services for adults, acupuncture, chiropractic services, speech and audiology services, optometry services, optician/optical laboratory services, podiatry services, psychology services, incontinence creams and washes. People getting Medi-Cal do not have money to buy these services. They will go without or go to emergency rooms – at great cost to the state – when they are in a medical crisis. They may feel their only choice is to go to nursing homes, even though they don’t want to and would not need to if they could get their services at home.

The governor proposes to eliminate the Medi-Cal Aged & Disabled Federal Poverty Level (FPL) program is planned. This program allows people with income up to 127% to qualify for Medi-Cal.

The governor proposes to cut Medi-Cal benefits for immigrants. Undocumented immigrants who currently get restricted scope Medi-Cal will only be able to get emergency room services, time-limited breast and cervical cancer treatment, pregnancy-related and postpartum care, and nursing facility care. They would have to reapply for services every month.

The governor proposes to cut full scope Medi-Cal benefits to some categories of newly “qualified” immigrants, including immigrants who are PRUCOL (Permanently Residing in the U.S. Under Color of Law). During the first five years of being qualified, they would receive only restricted scope Medi-Cal, similar to that received by immigrants who are undocumented.

He proposes to roll back the income eligibility for "1931(b)" Medi-Cal—the eligibility category for low-income families. The income ceiling for applicants would be reduced from the current level of 100 percent of the federal poverty level to 72 percent of the federal poverty level. Also, the "100-hour rule" would be reinstated, which bars coverage for people working more than 100 hours per month.

CAPI

The Cash Assistance Program (CAPI) for Immigrants will be cut if the governor’s plan is approved. CAPI provides cash assistance to immigrant seniors and persons with disabilities who do not qualify for federal SSI. CAPI serves as a lifeline for people who rely on the grant to secure housing, food and other basic needs. CAPI serves almost 10,000 lawfully residing immigrant seniors and immigrants with disabilities in California.

IHSS: proposed permanent reductions

IHSS domestic and related services for people with functional index ranks below 42 for those particular services will be eliminated under the proposal. Domestic and related services include meal preparation, laundry, food shopping, and cleaning. Social workers authorize these services as necessary for the person to live at home safely. People who receive IHSS cannot afford to pay for the services. Losing these services will mean that some people will not be safe in their homes and others will be forced into nursing homes or other institutions.

The governor proposes to decrease state participation for IHSS wages and benefits to $8.00 per hour + up to 60 cents/hour for benefits.

He also proposes to eliminate the share of cost buy-out for people with overall functional Index scores below 4, which means some consumers could face a share of cost of several hundred dollars.

SSI/SSP

The governor wants to cut SSI/SSP payments by approximately $77 per month, leaving people who are already very low income with even less income per month.

End notes:

1. The term “optional” refers to the fact that the federal government does not require states to offer these services.

2. The functional index rank provides a measure of the consumer's independence and need for human assistance for performance of IHSS tasks as authorized under Welfare and Institutions Code § 12309. A functional index score of 3 means that the consumer needs human assistance, either physical or verbal, to perform a task. The Administration’s proposal means that although the assessment shows the consumer cannot do the task without human assistance, such assistance will no longer be provided. See Explanation on Functional Index.