The Proposed 2018-19 FY State Budget

May 11, 2018

Governor Brown Releases May Revision to Proposed 2018-19 FY State Budget With No Significant Changes to DDS Budget

Earlier today, Governor Jerry Brown held a press conference announcing the May Revision to his proposed budget that was released in January. The “May Revise” budget is based upon updated state revenues and provides the Governor the opportunity to identify his spending priorities before negotiations occur with the Legislature. As is his wont, the Governor’s last May Revise was accompanied by his prediction of a economic slump in the near future, and he urged caution and restraint to the Legislature regarding new ongoing spending commitments.

Accordingly, no new spending commitments were identified for the DDS budget, including CDSA’s rate increase request. Other community proposals to address local minimum wage, restore social recreation and camping services, and ensure that revenues generated by the sale or lease of the closing developmental center properties remain in the DD budget were absent from the May Revise budget. That the May Revise budget did not include these items is not surprising, but it highlights the need for ongoing advocacy.

The January proposal to re-implement the 14-day uniform holiday schedule remains in the Governor’s proposed budget, and it will be up to the community to pressure the legislature to ensure that it is not in the final budget. The $15 million for HCBS transition grant funding is proposed to continue for the third consecutive year.

For the current fiscal year, the Governor is now projecting a $14.6 million decrease in total spending for purchase-of-service expenditures, with a $40.3 million decrease in general fund spending. Some of the decrease in general fund spending reflects an increase in federal reimbursements, but it also shows that fewer services are being purchased than was estimated for the year. We believe this is at least partly the result of inadequate rates for services and the restriction on start-up funding for new services – which means consumers are not fully being served – and highlights the need for our budget request to increase rates by 4 percent and eliminate the median rate caps/freezes.

We encourage all of our members to continue your advocacy with your representatives to generate support for CDSA’s budget priorities so that they remain in the mix as final budget negotiations take place in the next few weeks. Budget Subcommittees will hold their final hearings during this time, so it is critical that we make ourselves heard.

Below, find the relevant budget documents that were released this morning:
2018-19 May Revision – DDS Highlights
2018-19 May Revision – Regional centers and DC estimate
2018-19 May Revision – Governor’s Budget Summary