Wednesday, May 15, 2013

Governor Brown Releases Budget Revisions -- No New Reductions to DDS

Citing an uncertain revenue and economic picture in the coming years, Governor Brown released his proposed revisions to his 2013-2014 State Budget on Wednesday of this week, which he characterized as “prudent” and “…one that responds to our educational and health challenges”.

"This budget builds a solid foundation for California's future by investing in our schools, continuing to pay down our debts and establishing a prudent reserve," said Governor Brown. "But California's fiscal stability will be short-lived unless we continue to exercise the discipline that got us out of the we inherited."

While his budget revisions reflect about $2.8 billion in higher revenues than expected, the Governor repeatedly emphasized the need “…to find right balance between spending and holding the line” in a time of uncertainty – not only in the State’s economic picture – but the impact of the national and world economies that impacts California revenues.  In addition, Brown Administration officials repeatedly said that the higher revenue projections can be misleading because the money is already allocated – or is off-set by lower projected revenues in future budget years.

In response to a reporter’s question about various advocates pushing for restoration of funding of various previously cut services and programs, and whether the Governor would favor such action, he replied “No.”  

The Governor noted that the Democratic legislative leadership – Senate President Pro Tem Darrell Steinberg (Democrat – Sacramento) and Assembly Speaker John Perez (Democrat – Los Angeles) both have taken positions supporting a strong budget “rainy day” reserve and restraint in new spending.

But when asked about pressure from Democratic rank and file members in the Legislature about restoring funding for several previously cut services, the Governor said flatly that “…they [rank and file legislators] can push but I can push back. At the end of the day they need a Governor’s signature.”

With respect to DEVELOPMENTAL SERVICES:

NO NEW REDUCTIONS: No new reductions in State general funding – but does reflect reduction federal funding for the State’s early intervention program (see below).

SONOMA DEVELOPMENTAL CENTER:
-          The Governor’s May 14th budge revision includes an increase of $344,000 ($241,000 of that State general funds), for the current 2012-2013 State Budget year that ends June 30, 2013, and another $2.5 million ($1.7 million of that State general funds) for the upcoming 2013-2014 State Budget year, to reflect anticipated costs related to the “Sonoma Developmental Center Improvement Program Plan” that requires the State to contract with an independent consultant review experts to develop an action plan to bring 4 of the 10 intermediate care units in the facility into compliance with federal Medicaid requirements.
-          Provisional budget bill language (meaning language in the actual budget bill rather than a trailer bill) would authorize up to $10 million in additional funding to address the costs necessary to implement this action plan.
-          The Governor’s May 14th budget revision includes increases of $7.4 million (State general funds) for the current 2012-2013 State Budget year and another $15.7 million in State general funds for the upcoming 2013-2014 State Budget year to replace the lost federal matching Medicaid funds for those units in the Sonoma facility. 

1.25% PAYMENT CUT SUNSET: Governor’s May14th budget revisions still includes the end of the 1.25% payment reduction to most regional center providers and regional center operations, scheduled to “sunset” (end) on June 30, 2013.  However the Governor’s May 14th budget revision contains no proposals for restoration of funding of previously cut programs or services.

EARLY START FEDERAL FUNDING REDUCTION:
-          The Governor’s May 14th budget revisions does reflect reduced allocation of federal funding and the larger impact of the loss of funding impacted by the federal “sequester” totaling about $4.5 million in federal money for the State’s early intervention program – called Early Start.  The reduction in federal money for this program will be spread across the Early Start budget to reduce the impact, including cuts in funding to the Department of Developmental Services headquarters, overhead for the Interagency Coordinating Council that is composed of all state agencies – including the Department of Developmental Services, Education and Social Services – and public community representatives and others who provide advice and input on the program; and reduction in funding to the consulting organization – WestEd – who provide staffing for the council.
-          Brown Administration officials say the reduction in federal funds will be spread across the program, including Department of Developmental Services, the lead state agency for Early Start, but the impact to the actual delivery of services is being addressed with $613,000 in additional State general funds to the program’s IDEA (Individuals with Disabilities Education Act) Part C grant for regional centers “purchase of services” that funds those early intervention services.

LANTERMAN DEVELOPMENTAL CENTER: Governor’s budget revisions continues closure process of Lanterman Developmental Center in Pomona that began in the fall of 2010 though does not propose additional closures of the other remaining centers at this point.  The Legislative budget subcommittees last week both passed budget trailer bill language that would anticipate closure of the facility – based on the Department of Developmental Services own milestones – of the fall of 2014 and not later than the end of December 2014.  While that language is not part of the Governor’s May 14th budget revisions, it is likely to be a part of the final budget that is passed and enacted in June.

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This information was provided in the latest California Disability Community Actiion Network (CDCAN) Report.

CDCAN Reports go out to over 65,000 people with disabilities, mental health needs, seniors, people with traumatic brain and other injuries, people with MS, Alzheimer's and other disorders, veterans with disabilities and mental health needs, families, workers, community organizations, facilities and advocacy groups including those in the Asian/Pacific Islander, Latino, American Indian, Indian, African-American communities; policymakers, and others across the State.

Sign up for these free reports by going to the CDCAN website at www.cdcan.us

CDCAN and Marty Omoto
1500 West El Camino Avenue Suite 499
Sacramento, CA 95833                                    
Phone: 916-757-9549

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