Status Brief  

January 12, 2010

 

 

Governor’s Budget Still Rough on the State
  Not so rough on DDS-funding however

 

The detailed Governor’s Budget related to DDS are not yet posted on the Department’s website as of just a few minutes ago. The November Estimates are available at the link below:

 

pdf 2010-11 November Estimate (Large File 10,241KB)

 

For the purpose of our discussions and the easiest reads, go to page B-1 for a narrative summary of the current year (2009-10) and page B-11 for a similar description of the budget year (2010-11).

 

In short, however, this year looks significantly better for us than last year. There are no major new reductions proposed, although there are some assumptions made that if not forthcoming would pose higher risk.

 

Highlights

 

  • Continuation of the 3% payment reductions for another year. I am virtually sure that none of you expected rate restoration, so this is not a new or deeper cut but an ongoing situation. The value is still worth noting at more than $60 million in General Fund “savings” and more than $100 million overall
  • A new unallocated reduction of $25 million
  • An assumption that the current federal stimulus package and new or expanded matching funding will be available through the budget year for a total “savings” (federal dollars simply supplant general fund)
  • $10 million from First 5 for DD kids below the age of 5 – this requires a vote of the people and a similar initiative a year ago failed.
  • Growth (caseload) is funded. Last year, the assumption was that new consumers would enter the system and be served but no additional funding would be provided. The actual cut of $334 million was predicated on the assumption that this is what it would cost to serve these new consumers. Fully funding growth is a significant improvement.

 

The CDSA Public Policy Committee, chaired by Will Sanford (Futures Explored) will be meeting all day on Wednesday to discuss and develop responses and strategies to this budget. Because the budget relies so heavily on new and ongoing federal funds, they will want to discuss a strategy that focuses some of our energy on the California Congressional Delegation, particularly in light of the fact that Speaker Nancy Pelosi is the first Californian ever to hold that lofty position.

 

It is too soon to declare victory. And there remain questions. Why, for example, is there is an assumption that the new $25 million unallocated reduction would come from POS at all given the preponderance of cuts from this segment of the budget last year?  Why are there are no reductions being made to administrative functions or from closing/consolidating of DC’s?

 

 Some of these issues need to be raised continually just to keep the iron hot for striking. Others need to be part of the discussions to create the permanently re-balanced system that focuses on the ability of people with disabilities to choose the services they need to live in their communities from support teams they choose.

 

Finally, there will be opportunities to discuss with the Administration and more likely the Legislature efforts to realign the expectation the Department and regional centers have for your administrative and reporting in line with the lack of funding you are given to comply. This is another significant topic for Wednesday’s very important meeting.

 

 

CDSA CONFIDENTIAL