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California 2010-2011 Budget: Impact on Health and Human Services
On Monday, October 8, 2010, Governor Schwarzenegger signed California’s $87.5 billion budget, after line item vetoes of an additional $963 million, including more cuts to Health and Human Services programs serving low income persons, children, elders and persons with disabilities. The Governor’s line item vetoes targeted mental health services, HIV/AIDS prevention and treatment programs, community-based programs for seniors and substance abuse programs, among others.
First – the good news: The new budget does not include a number of the drastic cuts proposed in the Governor’s May budget revision, including elimination of CalWORKS (California’s aid to families program), reductions in reimbursements for adult day health care services or drastic cuts to the IHSS program. Although the budget estimates $300 million in spending reductions from IHSS, only $35 million will be an actual cut by imposing a 3.6% reduction in caregiver hours.
The bad news: The budget still includes elimination of the Department of Aging’s Community Based Services programs and millions of dollars in cuts to child welfare programs, development disability programs and child care programs.
With no new revenue streams and no new taxes, Sacramento sources are already estimating a $23 billion budget deficit for next year
Following are a list of the major Health and Human Services cuts included in the final budget:*
• Department of Aging/Community Based Services programs: General funds of $6.4 million, which were restored by the legislature were cut by the Governor. These programs include Alzheimer’s Day Resource Centers, Brown Bag program, Respite, and Senior Companion.
• Substance Abuse Offender Treatment Program: Eliminates state funding of $18 million
Department of Health Care Services
• A decrease of $187.1 million General Fund by enrolling seniors and people with disabilities in managed care and deferring a managed care payment for two-plan and geographic managed care counties.
Department of Public Health
• A decrease of $52.1 million to the Office of AIDS
Department of Developmental Services – Regional Center cuts
•A decrease of $25 million to regional center operations and provider payments. Reductions will be increased from 3 percent to 4.25 percent. •A decrease of $5 million to the regional centers in 2009-10. Funding for Adult Day Health Care Services (ADHC) will be reverted because the ADHC reductions were enjoined by the court.
Department of Mental Health
• A decrease of $52 million from eliminating state funding for the AB 3632 mandates.
Department of Social Services
• A decrease of $365.9 million from utilizing an advance of Temporary Assistance for Needy Families Block Grant funds for the quarter ending June 30, 2011 in lieu of General Fund. This will provide one-time General Fund relief without any adverse program impacts.
Community Care Licensing
This Department, which licenses and oversees thousands of day care and residential facilities for children and adults, including nearly 7,800 Residential Care Facilities for the Elderly (RCFEs), has suspended the processing of new applications for all providers, provider appeals and staff training and will focus on complaints, incident report, enforcement actions (and follow-up actions), annual inspections and five-year inspections due to budget cuts and a hiring freeze.
*Source: California Department of Finance
For more information on California’s final 2010-11 Budget see:
California Budget Project: http://www.cbp.org/pdfs/2010/100618_Budget_Comparision.pdf
California Department of Finance: http://www.ebudget.ca.gov/
The Full Budget Summary, including the Governor’s veto remarks.