SR-106-040-02 (3)
F:HSD/SHARE/Commissions-Advisory Boards/Disabilities Commission/staff reports/advocacy re budget cuts 012704.doc
City Council Meeting: January 27, 2004 Santa Monica, California
TO: Mayor and City Council
FROM: Disabilities Commission
SUBJECT: Request From the Disabilities Commission for City Council to Approve
Commission Advocacy Efforts to Support Funding for Health and Human
Services Impacting People With Disabilities.
Introduction
This report requests Council approval of Disabilities Commission advocacy efforts to
support the necessary State funding to preserve health and human services impacting
people with disabilities at the State and local levels. With City Council approval, the
Disabilities Commission will communicate with local, regional and State officials in
support of this position.
Background
On November 24, Governor Schwarzenegger’s staff, in response to the current and
anticipated budget deficits, proposed cutting certain health and human services
programs, in addition to issuing a $15 billion bond to close a State budget shortfall
estimated at $24.8 billion over the next 18 months. The bond measure has been placed
on the March, 2004 ballot. Proposed cuts to health and human services continue to be
discussed by the Legislature and the Governor, whose budget proposal has been
released.
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According to the California Budget Project and the California Health Care Foundation,
the Governor’s proposed cuts include $720 million from the Department of Health
Services and $632 million from the Department of Social Services, Child Support and
other human services programs. These are in addition to cuts to the Transportation
Department ($933 million) and higher education ($319 million).
Specific proposed reductions include:
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Capping enrollment in a range of health and social service programs at January
1, 2004 levels. Covered programs would include Healthy Families, the California
Food Assistance Program, and the Cash Assistance Program for Immigrants,
the AIDS Drug Assistance Program, Department of Rehabilitation programs, the
Genetically Handicapped Persons Program, and the California Children’s
Services State-only program. Legal immigrant enrollment in Medi-Cal, Healthy
Families, and CalWORKs would also be capped at January 1, 2004 levels;
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An additional 10 percent reduction in Medi-Cal provider reimbursement rates
($151.8 million in 2003-04 and $443.0 million in 2004-05). The 2003-04 budget
agreement reduced provider reimbursement rates by 5 percent;
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A 5 percent cut in CalWORKs cash assistance payments and elimination of the
statutory CalWORKs COLA that became effective October 1, 2003, as a result of
the reduction in the Vehicle License Fee (VLF) rate;
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Use of federal Temporary Assistance for Needy Families (TANF) dollars to pay
for In-Home Supportive Services, Foster Care, Child Welfare Services, and
Developmental Services ($41.1 million in 2003-04 and $119.5 million in 2004-
05);
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Elimination of the Wage Adjustment Rate Program, which provides supplemental
payments to certain long-term care facilities for salaries, wages or benefits for
caregivers ($46 million in 2003-04 and $2.5 million in 2004-05);
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Eliminating the “residual” In-Home Supportive Services program, which provides
certain services such as heavy cleaning, transportation, non-medical personal
care and respite services ($63.2 million in 2003-04 and $322.2 million in 2004-
05); and
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Eliminating the Transitional Food Stamp program and rescinding changes made
to food stamp vehicle and application rules enacted by AB 231 of 2003 ($1.5
million in 2003-04 and $4.3 million in 2004-05).
Additionally, because the Governor issued an Executive Order directing approximately
$2.65 billion in State funds to local governments to repay them for revenue lost as a
result of the repeal of the vehicle license fee increase, there is concern that increased
state funds for local governments could result in reduced funds for health and human
services. Local agencies serving seniors and people with disabilities in Santa Monica
will likely feel any cuts immediately because most receive funding from various County,
Regional and State departments that would be affected (e.g. Department of Health,
Department of Rehabilitation, Department of Mental Health, Area Agency on Aging, et
cetera). The 2000 census shows that there are 13,202 persons with a disability aged 5
years or older living in Santa Monica (17% of the total population).
Discussion
Collectively, the cuts to health and human services account for almost 50% of the total
proposed budget cuts, a disproportionate share of the deficit burden which will be
shouldered by the most vulnerable sectors of the population. These cuts would result in
the loss of services to low-income residents, seniors and people with disabilities, both
children and adults:
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The proposed cut in the In-Home Support Services (IHSS) program would result
in 74,200 elderly, blind, and disabled persons losing homecare services.
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Services provided by IHSS and Medi-Cal providers allow people with disabilities
to live independently in the community, rather than in more restrictive
environments including nursing homes and state hospitals. These more
restrictive environments are also more expensive.
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Further cuts to Medi-Cal providers will likely result in fewer providers, leading to
further overcrowding in emergency rooms, which is more expensive than primary
care in an appropriate setting.
Recommendation
The Disabilities Commission requests the City Council’s approval to undertake
advocacy efforts directed to county, regional and state officials to provide funding to
continue health and human services impacting people with disabilities.
PREPARED BY: Disabilities Commission
Janet Hand, Commission Staff Liaison
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