Governor Gavin Newsom has signed the California budget for 2022. The budget’s focus for next year is on the COVID-19 response, fire safety and homelessness. The total budget state funds come to $262.5 billion, with $196.4 billion from the General Fund, $61.2 billion from special funds and $4.9 billion from bond funds. (Link to Full Budget)

Disability Rights California advocated on many crucial budget items that have been implemented into the state’s budget. DRC worked with budget committee staff, department staff and the department of finance to ensure that the budget included crucial provisions for the disability community.

The state’s financial outlook is looking positive after major concerns leading into the first year of the COVID-19 pandemic. It turned out that the state has been able to bring in a significant amount of revenue. Many of the policies and programs that DRC advocated for will be implemented into the 2021-22 budget.

The budget approved a $1.2 billion rate increase for providers. DRC is supportive of providers earning a living wage, and will continue to advocate for these rates to be tied to outcomes for regional center consumers. This increase is critically important to the DD system and will improve the quality of life for people with intellectual and developmental disabilities (IDD).

Other notable budget items in the IDD space include permanent restoration of the IHSS 7% hours cut, the phased restoration of SSI/SSP cuts, the restoration of camping, social recreation, and other regional center services suspended since 2009, the creation of a Coordinated Family Support Services model to enhance services for adults who live at home with their families, additional funding to support competitive integrated employment, expanded regional center eligibility for children ages 3-4, and funding to create an independent Ombudsperson for Self-Determination Program participants.

The budget also reflects landmark spending for tenant protections, providing back payments for eligible tenants who were unable to pay rent during the pandemic. Housing production received $150 billion to acquire and rehabilitate housing facilities.

Special education will benefit from $650 million in additional spending to make services more equitable to pupils across the disability spectrum, and education funding in general is at an all-time high. While much more work is needed to improve the lives of people with disabilities, this budget restored several cuts to programs that were impacted by the 2009 recession and benefitted from an unprojected surplus of revenue.

Two notable budget items relating to mental health are the Behavioral Health Continuum Infrastructure Program and the Children and Youth Behavioral Health Initiative. The Behavioral Health Continuum Infrastructure Program includes $755.7 million for 2021-22, $1.4 billion in 2022-23, and $2.1 million in 2023-24 as grants for entities to create and rehabilitate real estate assets or invest in the infrastructure of mobile crisis. The investment in mobile crisis aids in facilitating an alternative relationship with the behavioral health system without the involvement of excessive policing, as reflected in national efforts with the implementation of 988, the national crisis and suicide prevention hotline.

The Children and Youth Behavioral Health Initiative dedicates $1.4 billion in 2021-22, $1.5 billion in 2022-23, and $431 million in 2023-24 and ongoing in order to provide preventative care and screening to all youth under the age of 25 regardless of provider and payer. This Initiative aims to utilize early intervention and support for children in order to reduce mental health challenges in adulthood.

Below are major provisions of the final budget agreement impacting persons with disabilities and the elderly:

Aging

Older Adult Recovery and Resiliency - $106 million General Fund, available over three years, to strengthen older adults’ recovery and resilience from isolation and health impacts caused by the pandemic. This investment will increase service levels of existing programs based on local need including: Senior Nutrition, Senior Legal Aid, Home Modifications and Fall Prevention, Behavioral Health Line, Senior Digital Connections, Family Caregiver Support, Senior Employment Opportunities, Elder Abuse Prevention, and Aging and Disability Resource Connection.

Alzheimer’s

Alzheimer’s Augmentation - $12.5 million one-time General Fund to address Alzheimer’s in California. These investments include $5 million for public awareness at the Department of Public Health, $2.5 million for standards of care at the Department of Public Health, and $5 million for geriatric workforce development programs at the Office of Statewide Health Planning and Development.

Community-Based Adult Services (CBAS) Certification Workload (CDA)

Approves $1.9 million [$800,000 General Fund] in 2021-22 and $2.4 million [$1 million General Fund] ongoing to support increased resources to address certification back-log workload at the Department of Aging.

Long Term Care Career Pathways (CDSS)

Approves $200 million one-time General Fund]in 2021-22 to incentivize, support, and fund career pathways for IHSS providers, allowing these workers to build on their experience to obtain a higher-level job in the home care and/or health care industry.

Long-Term Care Office of Patient Representative (CDA)

Approves $2.5 million General Fund in 2021-22 and $4 million General Fund ongoing to provide public patient representatives to nursing facility residents who lack capacity to make their own health care decisions and who do not have a family member or friend who can act as a patient representative.

Master Plan for Aging Implementation (CDA)

Approves $3.3 million General Fund ongoing

Medicare Options Counseling / Health Insurance Counseling and Advocacy Program (HICAP) Modernization (CDA)

Approves $2 million in 2021-22 and 2022-23 from the HICAP Special Fund to support two-year, limited term, resources to begin the modernization of the HICAP program.

Office of Medicare Innovation and Integration (DHCS)

Approves $602,000 [$452,00 General Fund] ongoing proposed investment for 4.0 permanent positions to provide DHCS leadership and expertise on innovative models for dual eligible.

Older Adult Recovery and Resiliency (CDA)

Approves a one-time investment of $106 million General Fund, available over three years, to strengthen older adults’ recovery and resiliency from the severe isolation and health impacts from staying at home for over a year due to the Coronavirus pandemic.

Senior Nutrition: Home Delivered Meals and Community Center Meals (CDA)

• Provides $14.3 million General Fund in 2021-22 and $35 million General Fund ongoing for additional funding for increased meals.
• Provides $40 million General Fund one-time in 2021-22 for capacity building for Senior Nutrition programs.

CalFresh Expansion Older Adults Outreach (CDA)

Approves $2.0 million [$1.1 million General Fund] ongoing in continued funding for the CalFresh Expansion-Older Adults Outreach Program that assists eligible Supplemental Security Income (SSI) and State Supplementary Payment (SSP) recipients with applying for CalFresh food benefits.

Children’s Programs

Approves a second pandemic relief package of $579 million in one-time Coronavirus Response and Relief Supplemental Appropriations fund to support the early learning and care workforce. The pandemic relief package includes:

Approved a tiered licensed provider one-time stipend based on licensing capacity of between $3,500 to $6,500.

• A third round of per-child stipends for subsidized child care and preschool providers.
• Family fee waivers for eligible families beginning July 1, 2021 through June 30, 2022.
• $25 million one-time CRRSA funds available through September 30, 2023, for the expansion of the California Child Care Initiative Project to target areas such as child care deserts and building capacity of new licensed family child care homes.
• $10.6 million one-time CRRSA funds available through September 30, 2023 for early childhood mental health consultation. This investment will expand the California Inclusion and Behavior Consultation project which offers support to child care programs and providers on such topics as children’s social emotional development, trauma-informed practices and health and safety for the wellbeing of children and families impacted by the pandemic and beyond.
• 16 non-operational days for providers accepting vouchers that have to close due to COVID-related reasons beginning July 1, 2021, through June 30, 2022.
• Continued hold harmless funding for child care providers that contract directly with the state and provider reimbursement at a child’s maximum certified level of need for all providers accepting vouchers through June 30, 2022.

The final budget approves $1.1 billion General Fund in 2021-22 for services to children and families in California’s Child Welfare System, including $39.4 million General Fund to develop a new technology platform for Child Welfare Services. When federal and 1991 and 2011 Realignment funds are included, total funding for children’s programs is in excess of $9.3 billion in 2021-22.

SIGNIFICANT ADJUSTMENTS:

• Foster Care Emergency Assistance—Approves $24.5 million General Fund and federal TANF block grant funds in 2021-22 to provide caregivers with up to four months of emergency assistance payments pending resource family approval and up to twelve months for cases that meet good cause criteria.
• Child Welfare Services-California Automated Response and Engagement System—Approves $39.4 million General Fund in 2021-22 to continue development of a new technology platform for Child Welfare Services.
• Child and Adolescent Needs and Strengths Assessment Tool Workload—Approves $3.4 million General Fund ongoing for increased county social worker workload associated the Child and Adolescent Needs and Strengths assessment tool.
• Continuum of Care Reform Reconciliation—Approves $7.1 million General Fund to reflect Continuum of Care Reform true-up related to county Child and Family Teams actual expenditures for fiscal year 2018-19.
• Stipend for Tribal Social Work Students—Approves $3 million General Fund in 2021-22 to provide a Master of Social Work Programs stipend for tribal members.

Department of Developmental Services (DDS)

• Service Provider Rate Reform—$89.9 million General Fund in 2021-22, growing to $1.2 billion General Fund ongoing in 2025-26 for provider rate increases based on the DDS 2019 Rate Study. Annual funding includes resources for development and implementation of a quality incentive payment program focused on improving consumer outcomes and service quality.
• Lanterman Act Provisional Eligibility—$23.8 million ongoing General Fund to provide children ages three and four with provisional Lanterman Act service eligibility.
• Systemic, Therapeutic, Assessment, Resources, and Treatment (START) Teams—$8 million General Fund in 2021-22, increasing to $11 million General Fund ongoing in 2022-23, for START teams. The teams provide crisis prevention and response services to individuals with intellectual or developmental disabilities
• Low to No Purchase of Service Caseload Ratio—$10 million ongoing General Fund to establish an enhanced caseload ratio (1:40) to improve service delivery, benefitting consumers in underserved communities.
• Elimination of Suspensions—Eliminates suspension of the Provider Supplemental Rate Increase and lifts implementation of the Uniform Holiday Schedule resulting in a cost of $309.6 million General Fund ongoing.
• Direct Service Professional Workforce Training and Development—$2.9 million General Fund in 2021-22 to establish a training and certification program for direct service professionals tied to wage differentials. Beginning in 2023-24, ongoing costs increase to $51 million General Fund. The differentials aim to stabilize service access and professionalize and diversify the workforce
• Bilingual Staff Differentials—$2.2 million General Fund in 2021-22 to create a differential for bilingual service provider staff. Beginning in 2023-24, ongoing costs increase to $6.5 million General Fund.
• Self-Determination Supports—$7.8 million General Fund to improve consumer onboarding into the Self-Determination Program, to include: participant choice specialists, intensive transition support services, regional center training, and the establishment of the Office of the Self-Determination Program Ombudsperson. Beginning in 2024-25, ongoing costs decrease to $3.2 million General Fund.
• Health and Safety Waivers—$3 million General Fund ongoing for regional centers to assist consumers with identifying and applying for health and safety waivers.
• Social Recreation and Camp—$19 million General Fund to restore access to regional center services including: camping services, social recreation activities, educational services, and nonmedical therapies. Beginning in 2023-24, ongoing costs increase to $36.8 million General Fund.
• Language Access—$10 million General Fund ongoing for Language Access and Cultural Competency Orientations and Translations for regional center consumers and their families.

Department of Public Health

• COVID-19 Response Costs—Approves $1.08 billion for COVID-19 response costs. These funds will support testing and laboratory operations, vaccination, medical surge capacity, contact tracing management, and other state operations needs.
• Pandemic Response Review—Approves $3 million for an assessment of the state’s public health and emergency response to the pandemic.
• Behavioral Health Outreach for Young People—$100 million over the next five years to support youth behavioral health education and outreach programs as a part of the Children and Youth Behavioral Health Initiative proposal.

Department of State Hospitals (DSH)

Incompetent to Stand Trial

• Provides $32.8 million General Fund to provide competency restoration service for IST patients in community mental health treatment settings. Beginning in 2024-25 ongoing costs increase to $54.7 million General Fund.
• Approves $17.1 million backfill for lost revenues as the state will no longer be able to take new Lanterman-Petris-Short patients. Beginning in 2023-24 the ongoing cost increases to $146 million.
• Provides $19.6 million to contract with counties to provide competency restoration services for IST patients residing in county jail facilities.
  • Beginning in 2022-23 ongoing costs increase to $28.8 million.
• Approves $12.7 million to partner with local county jails to re-evaluate individuals deemed IST on a felony charge waiting in jail 60 days or more pending placement to a DSH treatment program.

Diversity in State Employment

• Approves $588,000 ongoing to establish the Chief Equity Officer and two staffers at the Government Operations Agency.
  • This position will oversee the implementation of equity recommendations from the California Leads as an employer initiative and work with the state’s Chief Data Officer to gather and report data about state workforce.

Early Childhood

Department of Early Childhood Development

• Effective July 1, 2021 child care and nutrition programs will shift from the California Department of Education (CDE) to the Department of Social Services (DSS). This transition will align all child care programs within a single department in state government.
• Approves $25 million one-time Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) funds available through September 30, 2023, for the expansion of the California Child Care Initiative Project to target areas such as child care deserts and building capacity of new licensed family child care homes.
• Approves $10.6 million one-time CRRSAA funds available through September 30, 2023 for early childhood mental health consultation. This investment will expand the California Inclusion and Behavior Consultation project which offers support to child care programs and providers on such topics as children’s social emotional development, trauma-informed practices and health and safety for the wellbeing of children and families impacted by the pandemic and beyond.

Universal Preschool

• Approves $600 million in 2022-23 and $2.7 billion in 2024-25 to develop 250,000 new pre-k pupils and 145,000 new child care slots in the next two years.
• Approves $200 million one-time for planning and implementation grants for local educational agencies and $100 million one-time for local educational agencies to train and increase the number of early childhood educators.

Education

K-12

• The final budget increases total education spending to $93.7 billion, with an expected $15.3 billion in additional federal funding which increases per pupil spending to nearly $14,000.
• Approves $20 billion toward Governor Newsom’s reimagining public schools initiative which increases spending to:
  • $3 billion directed to facilitate community schools.
  • $2.6 billion to accelerate learning and tutoring services.
  • $1.1 billion to reducing class size and decrease staff to pupil ratios.
  • $1 billion to summer school and before and after school programs for low income pupils.
  • $150 million to implement a universal free school meal program.
• Approves increased funding for teacher preparation including:
  • $550 million toward teacher training and recruitment.
  • $500 million to fund the Golden State Teacher Grant Program.
  • $100 million to expand the teacher residency program.
  • $125 million toward classified school employee credentialing.
  • Provides a 5% COLA for teachers.
• Child College Savings Accounts
  • Approves $2 billion to seed $500 in to college savings accounts for disadvantaged youth, impacting 3.7 million students.
  • Low income pupils, homeless pupils, and pupils in foster care will receive $500.
  • An additional $500 will be allocated for homeless and foster youth.

Special Education

• Approves $277.7 million one-time federal IDEA funds to LEAs to increase general statewide special education resources.
• Approves $186.1 million to increase the cost-of-living adjustment for state special education funding from 1.5 percent to 4.05 percent.
• Approves $15 million one-time federal IDEA funds to support LEAs in developing individualized education programs and to develop tools to assess academic impacts of the pandemic on students with disabilities.
• Approves $2.3 million ongoing and $965,000 one-time funds and 6 positions for CDE to address special education complaints, perform court-ordered special education monitoring of local educational agencies, and to purchase special education monitoring software.

Higher Education

University of California

• Approves $957 million in overall funding for the University of California, including:
  • $302 million ongoing funds, reflecting a 5% base increase and restores the cuts in prior budget.
  • $655 million in one-time additional funds for maintenance and infrastructure projects.

California State University (CSU)

• Approves $1.4 billion overall funding for the CSU, including:
  • $596 million ongoing, reflecting a 5% base increase.
  • $433 million for deferred maintenance projects.
  • Establishes a new polytechnic university in Humboldt.

California Community Colleges (CCC)

• Approves $3.6 billion in overall CCC funding, including:
  • $1.4 billion to fully retire deferrals.
  • $371 million for a 5% staff cost of living adjustments.
  • $160 million for student basic needs including food, housing, and mental health services.
  • $50 million to fund the Guided Pathways Program.
  • $115 million for the zero textbook cost program.
  • $42 million toward staff recruitment and retention.

Equal Access

$50 million General Fund in 2021-2022 and $20 million in 2022-23 and ongoing General Fund to the Equal Access Fund to provide resources to legal aid organizations.

Health and Human Services

CalAIM

• The final budget provides $1.6 billion [$650.7 million General Fund] in 2021-22 for the CalAIM initiative. The cost increases to $1.5 billion [$812.5 million General Fund] by 2023-24 and decreases to $900 million [$480 million General Fund] in 2024-25 and ongoing.

Health Equity

• Provides $1.2 million [$148,000 General Fund] to establish and enforce health equity and quality standards for all Department of Managed Health Care licensed full-service and behavioral health plans

Medi-Cal

• Medi-Cal Coverage to Undocumented Older Adults—$67.3 million [$48 million General Fund] in 2021-22 and $1.5 billion [$1.3 billion General Fund] ongoing upon full enrollment to expand Medi-Cal to undocumented adults aged 50 and older effective no sooner than May 1, 2022. These costs are inclusive of In-Home Supportive Services costs included in the Department of Social Services budget.
• Medi-Cal Providing Access and Transforming Health Payments (PATH)—As part of the CalAIM Initiative, the Budget includes one-time $200 million [$100 million General Fund] to build capacity for effective pre-release care for justice-involved populations to enable coordination with justice agencies and Medi-Cal coverage of services 30 days prior to release.
• Five-Year Medi-Cal Eligibility Extension for Postpartum Individuals—The American Rescue Plan Act of 2021 allows states to receive a federal funding match if they extend Medi-Cal eligibility from 60 days to 12 months for postpartum individuals, effective April 1, 2022 for up to five years. Provides $90.5 million [$45.3 million General Fund] in 2021-22 and $362.2 million [$181.1 million General Fund] in 2022-23 growing to approximately $400 million [$200 million General Fund] until April 1, 2027 to implement the extension.
• Medi-Medi Seniors Medi-Cal Navigators—Provides $12 million in General Fund in 2021-22 and 2022-23 to support Navigators for dually-eligible senior Medi-Cal beneficiaries.

Homelessness and Housing

Project Roomkey

• Approves $12 billion over two years to further expand housing, including behavioral health continuum infrastructure and housing for low-income seniors.
• Approves $2.75 billion one-time fund over two years for the additional acquisition and rehabilitation of facilities through the Homekey program.
  • $1 billion for the CalWORKS housing support program.
  • $560 million to address family homelessness.

Other homelessness funding

• Approves $150 million to the Housing and Disability Advocacy Program through 2023-24 to assist individuals with disabilities who are experiencing homelessness.
• Approves $25 million one-time for the California Department of Veterans Affairs to administer a competitive grant program to support aging veterans and veterans with disabilities who have experienced chronic homelessness.
• Approves $40 million one-time over 5 years, for the Homeless Coordinating Financing Council to provide grants that will address family homelessness.

In-Home Supportive Services (IHSS)

• IHSS State and County Sharing Ratio—Includes increased state costs of $57.3 million General Fund in 2021-22 and $123.8 million ongoing General Fund to reflect the continuation of the 65-percent state and 35-percent county sharing ratio and the continuation of the ten percent over three years option.
• IHSS Seven Percent Fiscal Penalty—The Budget assumes that counties will pay a one-time penalty for failing to agree to contracts with IHSS providers through the collective bargaining process.
• Eliminates the IHSS seven-percent reduction in service hours resulting in a cost of approximately $248 million General Fund in 2022-23 and $496 million ongoing General Fund.

Mental Health

Mental Health Services Act (Prop 63):

• The Behavioral Health Continuum Infrastructure Program includes $755.7 million for 2021-22 , $1.4 billion in 2022-23, and $2.1 million in 2023-24 as grants for entities to create and rehabilitate real estate assets or invest in the infrastructure of mobile crisis.
• The Children and Youth Behavioral Health Initiative - dedicates $1.4 billion in 2021-22, $1.5 billion in 2022-23, and $431 million in 2023-24 and ongoing in order to provide preventative care and screening to all youth under the age of 25 regardless of provider and payer.

Additional Behavioral Health Programs

• Provides $5 million one-time Mental Health Services Fund to support a peer social media network project for children and youth who have experienced bullying, or who are at risk of bullying, based on race, ethnicity, language, or country or origin, or perceived race, ethnicity, or county of origin.
• Provides $2.8 million ongoing General Fund for the Office of Suicide Prevention.
• Provides $30 million one-time General Fund for the Kedren Community Health and Acute Psychiatric Hospital.

Behavioral Health for Children

• Provides $139.2 million to serve foster youth with complex needs and behavioral health conditions, within California, as well as youth that return from an out-of-state congregate placement.
• Increased funding for Children and Youth Behavioral Health Initiative from $1 billion one-time to $1.4 billion.
• Approves $23.8 million ongoing to provide children ages three and four with provisional Lanterman service eligibility.

Public Safety

California Department of Corrections and Rehabilitation

• Approves the closure of the Deuel Vocational Institution in Tracy and the California Correctional Center in Susanville, saving the state $272 million annually.
• Approves $23.2 million one-time and $18.4 million ongoing to increase reentry and education opportunities for incarcerated individuals.
• Approves $108 million one-time and $34.9 million ongoing to address staff misconduct and discrimination.
• Approves $43 million one-time and $35.9 million ongoing, and 264.1 positions to standardize staffing models across the five CDCR-operated Psychiatric Inpatient Programs.
• Approves $3.7 million ongoing for the Statewide Telepsychiatry Program.

Domestic Violence

• Approves $100 million one-time for Cal OES to supplement federal funding supporting a variety of services for domestic violence victims.

Juvenile Justice

• Approves $2.4 million one-time and $2 million ongoing General Fund to support increased rehabilitative programming for youth at Pine Grove.
• Approves statutory changes to create opportunities for state and local partnerships to maintain firefighting operations at the Pine Grove Youth Conservation Camp in Amador County.

Supplemental Security Income/State Supplemental Program

• Approves $2.7 billion for the SSI/SSP program. The average monthly caseload in this program is estimated to be 1.2 million recipients.
• Effective January 2021, the maximum SSI/SSP grant levels are $955 per month for individuals and $1,598 per month for couples.
• Approves $131.5 million and ongoing to restore SSP, Cash Assistance Program for Immigrants, and California Veterans Cash Benefit recipient’s COLA for individuals back to 2011 payment levels.