$tate Budget Page

  1. The Arc of California Enacted 05-06 Budget Presentation (PowerPoint)
  2. The Arc of California January 10th 2005 Budget Presentation (PowerPoint)
  3. The Arc of California Budget Presentation (PDF)
  4. Developmental Services Advocacy Letter
  5. IHSS Advocacy Letter
 
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2005 Budget Watch:

July 12, 2005
 
Governor Arnold Schwarzenegger signed the State Budget yesterday and has now published the Summary and Veto Message Package.  See the following link for your very own free copy:  http://www.dof.ca.gov/HTML/Budget_05-06/Veto_Pkg_05/Veto_Pkg_05_w2.pdf
 
Next hot items on the horizon:
1.       The legislative session is still going on and important bills are still under consideration in committees and floor sessions (see our 2005 Bill File for more information).
2.       DDS is hosting work groups to discuss major changes to Supported Living Services.
3.       Wage Order 5 sunset provisions for overnight shifts in group homes represents potential destabilization of CCF licensed residential services.
4.       Self Directed Services public input process for the regulations.
5.       October is the first notification scheduled for Part D Medicare prescription drug coverage for dual eligibles.
6.       Annual report of the developmental center consumers in the community by Sacramento State University.
7.       State’s fight with the federal government on the claw back requirements.
8.       $10 billion in major cuts to Medicaid.
9.       Continual incremental erosion of the community service system due to years of rate freezes and under funding.
10.   Etc. etc. etc.
 
July 5, 2005
 
They did it! Well almost.  The Big Five met over
the weekend and today came up with an agreement
that looks like it will hold.  An earlier agreement did
not receive enough support of the Republicans but
the leaderships now believes they have the votes to
carry this agreement.  The Governor "we gained
great momentum" working together and that while
this is the best budget much of it is thanks to the
turn around in the economy that saw "350,000 new
jobs in California.  Speaker Fabian Nunez said what
you see is strong democrat values in this agreement.
“On one hand this budget is fiscally sound” on the other hand
this budget is compassionate.”
 
More Resources and links to budget stories:
 
Governor, legislative leaders agree on new state budget

TOM CHORNEAU

Associated Press
SACRAMENTO - Gov. Arnold Schwarzenegger and leaders of both major parties agreed Tuesday on a state budget that adds money for schools, roads and health care without resorting to the deficit spending that has plagued California in recent years. "This is a terrific budget," the governor said in a late-afternoon news conference. "It's a budget that moves California forward." The accord on the roughly $116 billion spending plan comes five days after the start of the new fiscal year and after a weekend of negotiations between the governor and leaders of the Assembly and Senate.  Assembly Speaker Fabian Nunez, D-Los Angeles, said Schwarzenegger had brought Republicans and Democrats together, forcing compromises from both sides.
http://www.mercurynews.com/mld/mercurynews/news/breaking_news/12060266.htm
 
The Governor's Press Release
"The 2005-2006 budget will put California on the path toward rebuilding to make our state great once again. However, California still has a budget system that allowed the state to incur a $22 billion debt which the Governor inherited upon taking office. Without reform, that system could bring the state to the brink of bankruptcy again. Reforming the budget process is essential to keeping California on the path of progress."...
http://www.governor.ca.gov/state/govsite/gov_htmldisplay.jsp?sCatTitle=%20&sFilePath=/govsite/spotlight/070505_budget_update.html
 
June 30, 2005 (6:15 PM)
 
Well it didn’t happen.  So once again for the fifth straight year our representatives are unable to meet their constitutional requirement by tonight’s midnight deadline.  However the Big 5 is scheduled to meet over the weekend to work out a deal which now removes the governor’s contingency for his “Live within Our Means” provision.   This is an initiative that will be on the special election ballot and is actually not polling well at this time.  Senate Pro Tem, Don Perata, said while leaving the negotiations today, that the differences now are so small as to amount to only “budget dust.”
 
June 30, 2005 (1:45 PM)
 
The Assembly Floor Session to vote on the budget has been going on this morning but about a half hour ago Speaker Fabian Nunez called for decease on debate and announced that Governor Schwarzenegger has called for a Big 5 meeting.  The Senate Floor Session was scheduled to begin today at about 1:00 PM but has now been rescheduled for 4:00 PM.   Most regional centers should be able to operate in the new fiscal year without accessing a line of credit well into September but then shortly after will have to access these loans and begin with interest payments.  He said these payments represent a small portion of operation but nevertheless historically reach about $2 million system wide.
 
A little flavor from today’s Assembly Floor debate
 
Noreen Evans, Human Services Chair (Democrat): We currently serve 340,000 people in our IHSS program and the governor’s proposal would result in 76% of the people who are currently living in their own homes would have to move out into skilled nursing facilities at an 80% cost increase.
 
Jackie Goldberg, Budget Sub #2 Education Financing (Democrat): “We give up.”  We are giving a major concession in the area of education.
 
Russ Bogh, Republican Caucus Chair (Republican): We will not support this budget because it causes a $2 billion out year deficit.
 
Gene Mullen, Budget Sub #1 Health and Human Services (Democrat): He first joked about rep Bonnie Garcia’s remarks about being prepared to work over the weekend with her “slippers under her desk, toothbrush in the drawer, and an extra pair of underwear in her desk.”  Saying it was too much information.  He said he is an optimist and believes this budget will prevail because of sound policy over politics.
 
Loni Hancock, Budget Sub #1 Health and Human Services (Democrat): She talked about In Home Support Services workers and the impact of an impasse on the workers and consumers.  She said this budget is more than compromise it is capitulation.  She said it is only being held up because republicans think it gives them a political advantage – “we now have a tyranny of the minority.”
 
John Beniot, Minority Whip (Republican): He said this bill, SB 77, which is on the floor, is not the mark-up we’re actually considering and it is not even on the floor and only about 8 hours old. 
 
Judy Chu, Appropriations Chair (Democrat): “We have met the governor more than half way.”
 
Ray Haynes, Human Services Committee (Republican): The people who are making money off the government keep bringing their children up here in wheelchairs and keep getting more money without us even asking questions.  He later slightly retracted that comment saying that ‘these people do need our help” but that he blamed those making money off the government.

June 22, 2005

Democrats in the legislature are still saying they’re very close to an agreement and now with the Governor saying that the budget related components of the special election do not have to be part of this year’s budget agreement the Democratic leadership is saying they’re even closer.   Another factor that may bring about an early agreement is the results of the recent all time low approval rating of the governor.  The main message from the governor is that the proposal increases the debt by a couple of billion dollars.  Since no budget proposal is legally allowed to run in deficit these charges are controversial.  However, the nonpartisan LAO says the governor’s budget will result in about 4 billion deficit and the legislature’s budget proposal will result in about 6 billion dollars (give or take).

Budget in apparent stalemate, Sides disagree on how far they are from a deal.
Sacramento Bee June 22, 2005 by Alexa H. Bluth -- Bee Capitol Bureau
http://www.sacbee.com/content/politics/story/13107049p-13951759c.html
 
Budget rhetoric hot as deadline nears
Schwarzenegger, Democrats even disagree about how far apart they are on a spending blueprint
San Francisco Chronicle June 22, 2005 by Lynda Gledhill, Chronicle Sacramento Bureau
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/06/22/BAGJ7DCDQB1.DTL
 
Governor, legislators continue to joust over budget
San Diego Union-Tribune June 22, 2005 by Ed Mendel
http://www.signonsandiego.com/uniontrib/20050622/news_1n22budget.html
 
Rosy scenarios may not solve state budget crunch, The governor and lawmakers aim for a reality-based solution, although history suggests one will be hard to come by.
The Orange County Register June 22, 2005 by Hanh Kim Quach
http://www.ocregister.com/ocr/2005/06/22/sections/region_state/region_state/article_568859.php

June 17, 2005

Things just got a little harder in the assembly for passing the budget.  As reported in the Capitol Morning Report, “Speaker Nuñez told reporters at the luncheon that he has lost two Democratic votes in the Assembly. One is because Asm. Mike Gordon is undergoing treatment for brain cancer. The other is something Nuñez said he found out Wednesday. That is, Asm. Rebecca Cohn will be gone “for several weeks” for back surgery. Cohn’s chief of staff Cris Forsythe confirmed saying surgery is scheduled for June 20 to “address a long suffering back problem recently exacerbated.” He said she’ll be out four to six weeks. “We need 54 for a budget, and [Democrats are] down to 46,” Nuñez said. “You do the math and we’re seven votes short of a budget. Maybe eight.”

June 16, 2005

Well here we go again.  Major papers all over the state are trying to figure out exactly what happened this week with the budget.  Republicans were caught off guard by the Democrat’s about face on the budget and voted against it even though the differences are pretty minor.  It’s about a 1% of the total state budget.  My guess is that the budget will probably move along pretty much on time unless the Republicans and the administration calculate that it is in their best interest politically to hold up the budget.  A quicker budget means that our system won’t waste money on expensive interest payments to banks but it also means that the self directed services regulatory process will start much sooner which means that CMS will get the application early than most anticipated.  I’ll keep you posted…

June 15, 2005

The Assembly just now adjourned without a budget.  The Democrats were unable to get the necessary 2/3 votes for the budget and AB 6 (the tax proposal to help fund some of the education gap). Unless agreements are reached by the leadership sometime this week they will reconvene next week.

This article is very interesting.  Most bets are on a late budget September...October...even December.  However, this article says the Democrats may be willing to settle on the budget so they can focus their attention on the Special Election.  Some articles have indicated that the special election could drastically reduce the democrat’s power in Sacramento.  Stay tuned…
State Budget Battle Fizzles: The spending plan could be approved on time today after Democrats postpone their fight for school funding to focus on the special election.
Los Angeles Times June 15, 2005 by Evan Halper, Times Staff Writer
 http://www.latimes.com/news/local/la-me-budget15jun15,0,7536599.story?coll=la-home-headlines