June 29, 2009 State Budget Update

Thanks to Senior Action Network's James Keys for sending this:

The California State Assembly passed a revised budget spending cuts bill and 10 budget trailer bills on June 28, 2009. Please note that Supplemental Security Income/State Supplemental Payment (SSI/SSP) grants help low-income seniors and people with disabilities meet basic living expenses. Governor Schwarzenegger proposes to reduce the SSI/SSP grants to the minimum level required by federal law effective October 1st, 2009, which would eliminate $260.3 million in payments through June 2010 to 1.3 million vulnerable Californians – including approximately 18,000 SSI/SSP recipients who would become ineligible and lose their entire grant.

SB 16x3 - REVISED BUDGET BILL: SPENDING CUTS

Includes over $12 billion in reductions, including In-Home Supportive Services, SSI/SSP, regional centers (identical to what Governor proposed in May), mental health, Medi-Cal, as previously passed by the Budget Conference Committee in early June (see AB 42x3, AB 43x3, AB 44x4 and AB 45x3 - the budget trailer bills - that detail how these cuts will be achieved in education, human services, health, developmental services)

AB 39x3 - REVENUES: VEHICLE LICENSE FEE: STATE PARKS - FUEL TAXES: EMERGENCY SERVICES

Includes a total of over $2 billion in raising taxes and fees, most to take effect on October 1, 2009 including $1.50 tax per pack of cigarettes raising about $1 billion, and imposing a 9.9% oil tax severance. The bill also includes a $15 increase to the vehicle license fee, to be dedicated for parks maintenance effective January 1, 2010, generating $200 million (and that same amount would be shifted to the state general fund to off-set the need for other reductions).  Republicans say this bill required 2/3rds approval from both houses - Democrats say it does not.  This is one of 2 bills dealing with raising revenues or fees (AB 40x3 is the other).

SB 17x3 - TAXATION TRAILER BILL

Includes changes that defers payments, increases tax withholding.

AB 37x3 - COURTS AND PUBLIC SAFETY TRAILER BILL

Includes state law changes that implements cuts to public safety and the judiciary.

AB 40x3  TRANSPORTATION - FEES - TRAILER BILL

Transportation trailer bill includes state law change that would implement transportation related fees including increase of driver license fees (generates $230 million in full budget year) and changes related to gasoline user fee.  This is the second of two bills dealing with increasing revenues that Republicans say require a 2/3rds vote of both houses - a contention that Democrats say they do not agree with. 

AB 41x3 - PUBLIC RESOURCES TRAILER BILL

Makes changes to state law impacting resources and environmental budgets

AB 42x3 EDUCATION FINANCE TRAILER BILL

Budget trailer bill that makes changes in state laws impacting education, including temporary suspension of the California High School Exit Examination, and cuts to higher education. 

AB 43x3 HUMAN SERVICES TRAILER BILL (INCLUDES IHSS, SSI/SSP, CalWORKS)

This is the human services budget trailer bill dealing with changes in state law to In-Home Supportive Services (IHSS) that includes the elimination of all services for persons with functional index score under "2"; state law changes that authorize the reduction of  SSI/SSP grants to couples to lowest amount allowed by the federal government and a $5 additional cut to grants for individuals, effective October 1, 2009, cuts to community care licensing, cut to CalWORKS. 

AB 44x3 HEALTH TRAILER BILL (INCLUDES MEDI-CAL, DEVELOPMENTAL SERVICES)

Includes changes and additions to state law relating to reductions and changes to mental health, Medi-Cal, Healthy Families, adult care health care, and includes state law changes authorizing the suspension of the children's dental disease program.  Contains also two issues under the Department of Developmental Services relating to the Porterville Developmental Center regarding the limitation in existing law limiting the total number of persons in the secure treatment facility to include residents receiving services in the center's transition treatment program, and also a provision related to the Adult Residential Facilities for Persons with Special Health Care Needs (referred to as the "SB 962 homes") pilot program and extending it to January 1, 2011.

AB 45x3  - DEVELOPMENTAL SERVICES TRAILER BILL (PUBLIC SOCIAL SERVICES)

Includes the changes in state law need to implement the reductions to developmental services, including regional centers.  Includes authorization for the State to seek a Medi-Cal state plan amendment to increase the numbers of persons who could be covered by the Medi-Cal program within developmental services; includes changes in state law that narrows and reduces services under the Early Start (Early Intervention program), uniform or mandatory holiday schedule for regional center providers, and other changes to state law to implement the proposals for reductions that total over $334 million in state general fund spending during the 2009-2010 State budget year

AB 46x3 STATE GOVERNMENT TRAILER BILL

Includes changes to state law that would authorize the sale of a portion of State Compensation Insurance Fund; also other general government changes to state law.

Please note: all these bills still require approval from the State Senate (expected to happen Monday morning, June 29, 2009) and approval from the Governor.  The Governor however is expected to veto the bills.  Because these bills were passed as "non-urgency" measures requiring only a majority vote - none of the bills will take effect until 90 days AFTER the Governor signs the bills and it is chaptered by the Secretary of State. 

Source: California Disability Community Action Network Disability Rights News, California Budget Project