January 14, 2011
Speaker Pérez: Child Care Effort Succeeds--
SACRAMENTO—Assembly Speaker John A. Pérez (D-Los Angeles) today announced that thanks to efforts by the Assembly, California’s local First 5 Commissions, and the Brown Administration, thousands of working parents in California will continue to receive the child care services that allow them to stay in their jobs and keep their families off welfare.
“With the stroke of his blue pencil last fall, former Governor Schwarzenegger forced thousands of working parents to face the choice of losing their jobs or letting their kids fend for themselves,” Pérez said. “Today, I am pleased to announce that we did not let that happen and that this program is in fact being restored and is included in Governor Brown’s budget. This is a big win for working parents and their children, and also for the thousands of small business child care providers who would have had to close their doors or lay off their employees.”
In December, Speaker Pérez introduced AB 1, the first bill introduced in the 2011-2012 session of the Assembly, to reverse Schwarzenegger’s veto and restore the Stage 3 Child Care services that enable parents to transition from welfare to work. Speaking from the Assembly floor today, Pérez announced AB 1 would now be used as a vehicle if one is necessary to allocate existing transition funding until the budget is enacted and the program officially restored.
“Not only did Governor Brown hear us and restore Stage 3 Child Care in his budget this week, his administration is also actively working with us to identify existing funding that can be used to transition until the budget is enacted,” Pérez said. “As we move forward, should it be determined that any interim funding we identify requires authorizing legislation, I will make AB 1 available for that purpose.”
More than $40 million in bridge funding – including $6 million from cuts Speaker Pérez made to the Assembly’s own budget and additional funding he sought from the county First 5 commissions – helped buy time until Stage 3 Child Care services could be restored. A judge’s stay of the elimination of the services also allowed time for Speaker Pérez and other advocates to successfully push for the program’s restoration.
“Of course, there are still difficult cuts proposed to all child care programs – and undoubtedly, the final budget will have to include some of the proposed reductions,” Pérez said. “But as painful as those cuts may be, they will still be far better than Governor Schwarzenegger’s wholesale elimination throwing 60,000 families out of the workforce or their children into harm’s way. This is a very positive sign we can work with this Governor to create jobs, put California’s fiscal house in order, and make sure every Californian can find opportunity and the chance to succeed.”
Timeline:
October 8, 2010—Governor Schwarzenegger blue-pencils Stage 3 Child Care funds eliminating services for 81,000 children in 60,000 families transitioning from welfare to work.
October 19, 2010— Assembly Speaker John A. Pérez pledges $6 million from part of his 15% cut to the Assembly operating budget and contacts state and county First 5 commissions asking for help in providing bridge funding until Stage 3 Child Care can be restored. Local commissions take action throughout the next several weeks.
October 29, 2010—Alameda County judge issues stay in implementation of the cuts and orders November hearing.
November 5, 2010—Speaker Pérez announces more than $40 Million in bridge funding pledged so far.
November 17, 2010—Judge approves settlement keeping child care services available through end of year.
Dec 6, 2010— Speaker Pérez introduces AB 1 to reverse the veto and restore Stage 3 Child Care.
January 10, 2011—Governor Brown includes Stage 3 Child Care funding in his 2011-2012 budget proposal.
January 14, 2011—Speaker Pérez announces victory for working families and providers. Moves AB 1 to become authorizing vehicle if necessary for interim funding identified by Assembly and Brown Administration.
FOR IMMEDIATE RELEASE CONTACT: Shannon Murphy (916) 319-2408
Tuesday, January 18, 2011
Monday, January 17, 2011
Recently Elected Governor Jerry Brown Unveils New Budget Proposal for 2011-2012
On January 10, 2011, Governor Jerry Brown unveiled his 2011 - 2012 budget proposal addressing a $25.4 billion projected shortfall for the remainder of the 2010-11 and the upcoming 2011-12 fiscal years. The Governor’s budget includes many significant ongoing program reductions, posing very difficult decisions for the Legislature. His proposals touch nearly every area of the state budget—often (as in Medi-Cal) with proposed reductions similar to ones suggested by the prior Governor and rejected by the Legislature. While the Governor’s revenue proposals result in a $2 billion increase in the Proposition 98 minimum funding guarantee for schools above its current-law level, his budget would result in a small programmatic funding decline for K-12 and more significant reductions for community colleges and child care programs.
Here are the cuts as it pertains to Child Care, for detailed information on the budget please visit http://www.ebudget.ca.gov/:
Child Care and Development Program (Proposition 98)
General Fund Solutions
Decreases direct child care services, except Preschool, by $716 million in 2011-12 through the following actions:
• Eliminates services for 11-and 12-year olds. Reduces by $34 million CalWORKs Stage 1 (administered by Department of Social Services, savings reflected in that section) related to the elimination of this program.
• Reduces eligibility to 60 percent of the State Median Income from 75 percent of the State Median Income.
• Reduces the level of subsidies across the board.
• Provides greater flexibility at the local level to administer the remaining child care funding in order to implement the across-the-board reductions. In this regard, subsidized families would pay the difference between the subsidy and regular day care provider charges as a co-payment directly to the provider in lieu of the state’s administrative agents (Alternative Payment agencies and Title 5 contractors) assessing and collecting current family fees.
General Fund Policy Adjustments
• Sets aside $52.6 million in 2010-11 from one-time Proposition 98 settle-up funding to continue services for Stage 3 families effective April 2011, at a service level consistent with the policy solutions proposed for 2011-12. These policy solutions affect age and income eligibility and reduce subsidy levels across the board for all direct service child care programs.
• Decreases by $34.2 million in 2011-12 to reflect lower Stage 2 caseload projections to conform with the 48-month time limit that replaces long-term reforms as discussed in the Health and Human Services section.
General Fund Adjustments
• Increases CalWORKs Stage 2 by $241.5 million in 2011-12 to reflect a $4.2 million caseload increase and restoration of one-time funds used to support services in 2010-11 ($201 million of Proposition 98 one-time savings and $36.3 million American Recovery and Reinvestment Act (ARRA). Total base workload costs for Stage 2 is $435.2 million.
• Increases CalWORKs Stage 3 by $256.2 million in 2011-12 that reflects a caseload reduction of $42.4 million, restoration of one-time funds used in 2010-11 totaling $42.4 million ($23.7 million of prior year federal funds and $18.9 million ARRA), and restoration of the $256 million partial-year veto. Total base workload cost for Stage 3 is $342.4 million.
• Increases by $83.1 million in 2011-12 to restore General Child Care, State Preschool, Migrant Child Care, and Allowance for Handicapped programs that were required to utilize excess contract reserves to meet costs in 2010-11.
Non-General Fund Adjustments
• Decreases the Child Care and Development Funds (CCDF) by $18.5 million in 2011-12 to reflect removal of one-time carryover funds available in 2010-11 ($24.4 million), an increase of $3.2 million in carryover funds reserved for expenditures that promote quality improvement, and $2.7 million in available base grant funds.
• Decreases the ARRA funds by $110.1 million in 2011-12 to reflect the one-time nature of the fund source used for child care program for two years.
• Increases by $58 million in 2010-11 from unanticipated prior year federal CCDF carryover funding in 2010-11 to reflect additional costs driven by a court order to extend the date for Stage 3 funding termination from November 1 to December 31, 2010.
• Decreases the Federal 21st Century learning Centers by $23.1 million in 2011-12 to primarily reflect a change in prior year federal carryover funds utilized for this federally funded afterschool program in 2010-11.
• Increases the Early Learning Advisory Council by $948,000 for state operations in 2011-12 from federal funds for the second year of the three-year federal grant recently authorized for the support of state early learning advisory councils.
Department of Social Services
CalWORKs
• Eliminates monthly CalWORKs benefits for families that have received aid for 48 months or more. Child-only benefits, provided now when the adult is removed from the case, would continue beyond the 48-month time limit for families fully meeting work participation requirements. Child-only benefits would also continue for families with unaided adult recipients of SSI/SSP and non-needy caretaker relatives. Currently, California provides aid to eligible families up to 60 months and provides benefits to children until the age of 18 years. This new, shorter time limit of 48 months would result in a $698.1 million reduction to the program in 2011-12. This proposal assumes enactment of legislation by March 1 and implementation on July 1, 2011.
• Reduces CalWORKs grants by 13 percent, resulting in a lowering of the maximum monthly grant for a family of three in a high-cost county from $694 to $604 effective June 1, 2011, for a savings of $13.9 million in 2011-11 and $405 million in 2011-12. This proposal assumes enactment of legislation by March 1 to effectuate the June 1 implementation. The current grant level is lower than grants in 20 other states after adjusting for housing costs and has not been adjusted over time to match inflation or increases in the cost of living, thus making it lower than it was in 1989, dollar for dollar. CalWORKs provides benefits to more than 580,000 families with over 1 million children.
• Continues the reduction in the CalWORKs single allocation for 2011-12, resulting in savings of $376.9 million. The single allocation is the funding for CalWORKs employment services, child care, and county administration, the programmatic elements that make the CalWORKs program a welfare-to-work model to enable self-sufficiency over time for unemployed parents and low-income families. This funding reduction severely inhibits the ability for counties to assist needy families in their search for and ability to maintain work that would allow them to meet work participation standards and continue to receive basic assistance to meet shelter, food, clothing, transportation, and other living needs.
Here are the cuts as it pertains to Child Care, for detailed information on the budget please visit http://www.ebudget.ca.gov/:
Child Care and Development Program (Proposition 98)
General Fund Solutions
Decreases direct child care services, except Preschool, by $716 million in 2011-12 through the following actions:
• Eliminates services for 11-and 12-year olds. Reduces by $34 million CalWORKs Stage 1 (administered by Department of Social Services, savings reflected in that section) related to the elimination of this program.
• Reduces eligibility to 60 percent of the State Median Income from 75 percent of the State Median Income.
• Reduces the level of subsidies across the board.
• Provides greater flexibility at the local level to administer the remaining child care funding in order to implement the across-the-board reductions. In this regard, subsidized families would pay the difference between the subsidy and regular day care provider charges as a co-payment directly to the provider in lieu of the state’s administrative agents (Alternative Payment agencies and Title 5 contractors) assessing and collecting current family fees.
General Fund Policy Adjustments
• Sets aside $52.6 million in 2010-11 from one-time Proposition 98 settle-up funding to continue services for Stage 3 families effective April 2011, at a service level consistent with the policy solutions proposed for 2011-12. These policy solutions affect age and income eligibility and reduce subsidy levels across the board for all direct service child care programs.
• Decreases by $34.2 million in 2011-12 to reflect lower Stage 2 caseload projections to conform with the 48-month time limit that replaces long-term reforms as discussed in the Health and Human Services section.
General Fund Adjustments
• Increases CalWORKs Stage 2 by $241.5 million in 2011-12 to reflect a $4.2 million caseload increase and restoration of one-time funds used to support services in 2010-11 ($201 million of Proposition 98 one-time savings and $36.3 million American Recovery and Reinvestment Act (ARRA). Total base workload costs for Stage 2 is $435.2 million.
• Increases CalWORKs Stage 3 by $256.2 million in 2011-12 that reflects a caseload reduction of $42.4 million, restoration of one-time funds used in 2010-11 totaling $42.4 million ($23.7 million of prior year federal funds and $18.9 million ARRA), and restoration of the $256 million partial-year veto. Total base workload cost for Stage 3 is $342.4 million.
• Increases by $83.1 million in 2011-12 to restore General Child Care, State Preschool, Migrant Child Care, and Allowance for Handicapped programs that were required to utilize excess contract reserves to meet costs in 2010-11.
Non-General Fund Adjustments
• Decreases the Child Care and Development Funds (CCDF) by $18.5 million in 2011-12 to reflect removal of one-time carryover funds available in 2010-11 ($24.4 million), an increase of $3.2 million in carryover funds reserved for expenditures that promote quality improvement, and $2.7 million in available base grant funds.
• Decreases the ARRA funds by $110.1 million in 2011-12 to reflect the one-time nature of the fund source used for child care program for two years.
• Increases by $58 million in 2010-11 from unanticipated prior year federal CCDF carryover funding in 2010-11 to reflect additional costs driven by a court order to extend the date for Stage 3 funding termination from November 1 to December 31, 2010.
• Decreases the Federal 21st Century learning Centers by $23.1 million in 2011-12 to primarily reflect a change in prior year federal carryover funds utilized for this federally funded afterschool program in 2010-11.
• Increases the Early Learning Advisory Council by $948,000 for state operations in 2011-12 from federal funds for the second year of the three-year federal grant recently authorized for the support of state early learning advisory councils.
Department of Social Services
CalWORKs
• Eliminates monthly CalWORKs benefits for families that have received aid for 48 months or more. Child-only benefits, provided now when the adult is removed from the case, would continue beyond the 48-month time limit for families fully meeting work participation requirements. Child-only benefits would also continue for families with unaided adult recipients of SSI/SSP and non-needy caretaker relatives. Currently, California provides aid to eligible families up to 60 months and provides benefits to children until the age of 18 years. This new, shorter time limit of 48 months would result in a $698.1 million reduction to the program in 2011-12. This proposal assumes enactment of legislation by March 1 and implementation on July 1, 2011.
• Reduces CalWORKs grants by 13 percent, resulting in a lowering of the maximum monthly grant for a family of three in a high-cost county from $694 to $604 effective June 1, 2011, for a savings of $13.9 million in 2011-11 and $405 million in 2011-12. This proposal assumes enactment of legislation by March 1 to effectuate the June 1 implementation. The current grant level is lower than grants in 20 other states after adjusting for housing costs and has not been adjusted over time to match inflation or increases in the cost of living, thus making it lower than it was in 1989, dollar for dollar. CalWORKs provides benefits to more than 580,000 families with over 1 million children.
• Continues the reduction in the CalWORKs single allocation for 2011-12, resulting in savings of $376.9 million. The single allocation is the funding for CalWORKs employment services, child care, and county administration, the programmatic elements that make the CalWORKs program a welfare-to-work model to enable self-sufficiency over time for unemployed parents and low-income families. This funding reduction severely inhibits the ability for counties to assist needy families in their search for and ability to maintain work that would allow them to meet work participation standards and continue to receive basic assistance to meet shelter, food, clothing, transportation, and other living needs.
Tuesday, December 7, 2010
Stage 3 Funding Restoration Bill Introduced
Taking action to save jobs for tens of thousands of working parents and small business child care providers, Assemblyman John Pérez yesterday introduced a bill to restore child care funding for working parents that Governor Arnold Schwarzenegger recently vetoed. The action comes, said the Speaker's press release, after the Speaker worked to provide bridge funding for the program by committing $6 million generated from cuts in the Assembly's operating budget and working with California's state and local First 5 Commissions to arrange for more than $40 million in bridge funding for the child care services.
"We partnered with First Five Commissions all throughout the state to keep these parents and childcare providers working. That was the first step," Pérez said. "Today, I am taking the second step by introducing a bill that will fully restore this program and keep the parents and child care providers working. We will not stand idly by while others force parents back onto the welfare rolls and drive providers to the unemployment line. Failing to act will cost taxpayers far more than the cost of providing childcare."
AB 1 (Perez) would be funded by the transfer of $115,534,000 from various unobligated balances. AB 1 (Perez) language below:
http://leginfo.ca.gov/pub/11-12/bill/asm/ab_0001-0050/ab_1_bill_20101206_introduced.pdf
"We partnered with First Five Commissions all throughout the state to keep these parents and childcare providers working. That was the first step," Pérez said. "Today, I am taking the second step by introducing a bill that will fully restore this program and keep the parents and child care providers working. We will not stand idly by while others force parents back onto the welfare rolls and drive providers to the unemployment line. Failing to act will cost taxpayers far more than the cost of providing childcare."
AB 1 (Perez) would be funded by the transfer of $115,534,000 from various unobligated balances. AB 1 (Perez) language below:
http://leginfo.ca.gov/pub/11-12/bill/asm/ab_0001-0050/ab_1_bill_20101206_introduced.pdf
GOVERNOR SCHWARZENEGGER RELEASES EMERGENCY SESSION BUDGET PROPOSAL
Here are some lowlights:
• A decrease of $110.1 million in 2010 11 and $646.3 million in 2011 12 from reducing CalWORKs grants by 15.7 percent and eliminating the Recent Noncitizen Entrants program, effective April 1, 2011.
• A decrease of $49.4 million in 2011 12 from reducing the level at which the state reimburses CalWORKs child care providers, effective March 1, 2011.
• A decrease of $1.4 billion from eliminating the CalWORKs program effective July 1, 2011. This General Fund savings is in addition to the savings resulting from the above CalWORKs reduction proposals, and net of General Fund to be provided to the various programs and departments outside of CalWORKs that currently receive federal Temporary Assistance for Needy Families Block Grant funds.
Proposition 98 Subsidized Child Care Reductions
• A decrease of 200.2 million in current year to eliminate all remaining General Fund support of subsidized child care programs, except for the State Preschool Program and CalWORKs Stage 2, effective April 1, 2011.
• Additionally, cost containment reforms are proposed for all child care programs effective March 1, 2011, that include reductions to current income eligibility limits (from 75 percent of the State Median Income to 60 percent) and reductions to voucher based provider reimbursement limits (from the 85th to the 75th percentile of the 2005 regional market rate survey data, and from 80 percent of the respective licensed limits to 70 percent for license exempt providers). While remaining Proposition 98 funding is eliminated, federal funding remains as budgeted for the neediest families under a less generous subsidy program going forward. These reductions are estimated to result in $1.1 billion in annual savings beginning in 2011 12, including elimination of CalWORKs Stage 2 child care effective July 1, 2011, to conform to the elimination of the CalWORKs program as discussed in the Health and Human Services section.
• Legislation is proposed to establish greater incentives for child care providers and administrative agents, including Alternative Payment agencies, to reduce administrative error rates, to establish sanctions for those agencies that do not meet federal error rate guidelines, and to deter fraud in child care programs by recipients and providers. This proposal will help reduce wasteful spending and, consequently, result in more needy families receiving services with remaining funding in the future.
Food and Other Nutrition Programs
• A decrease of $301 million in 2010 11 and $602 million in 2011 12 to the Food Stamp and Child Welfare Services programs from shifting county mental health realignment funding to county social services programs. This adjustment eliminates the majority of funding for county mental health services and retains only the amount necessary to fund mandated mental health services.
• A decrease of $15 million in 2010 11 and $69.4 million in 2011 12 from eliminating the California Food Assistance Program effective April 1, 2011.
• A decrease of $18.1 million in 2010 11 and $93.1 million in 2011 12 from eliminating all Drug Medi Cal programs with the exception of the Perinatal; Early and Periodic Screening, Diagnosis, and Treatment; and Minor Consent Programs. This elimination of services is assumed to be effective April 1, 2011.
Other Health and Human Services
Health and Human Services
Healthy Families
• A decrease of $2.3 million in 2010 11 and $11.3 million in 2011 12 by eliminating vision coverage. This proposal would take effect April 1, 2011, after appropriate provider and beneficiary notification.
• A decrease of $6.2 million in 2010 11 and $25 million in 2011 12 by increasing monthly premiums in families with incomes from 150 to 250 percent of the Federal Poverty Level (FPL). Premiums would increase for the income group from 150 to 200 percent of the FPL by $14 per child (from $16 to $30) and a family maximum for three or more children by $42 (from $48 to $90). Premiums would go up for the income group from 200 to 250 percent of the FPL by $18 per child (from $24 to $42) and a family maximum for three or more children by $54 (from $72 to $126). No increase would result for families with incomes under 150 percent of the FPL. This proposal is consistent with what other states have done and would take effect April 1, 2011, after appropriate provider and beneficiary notification.
• A decrease of $6.8 million in 2011 12 due to increasing co payments for emergency room visits from $15 to $50 ($5.3 million) and adding co payments on hospital inpatient services of $100 per day with a $200 maximum ($1.5 million) consistent with cost containment proposals in Medi Cal. This proposal would take effect August 1, 2011, after appropriate provider and beneficiary notification.
• Medi Cal
The Special Session proposes $3.2 million in 2010 11 and $980.3 million in 2011 12 in savings from various Medi Cal Cost Containment proposals. The following specific savings proposals would contain costs in the Medi Cal program (proposed policies require a state plan amendment or federal waiver):
• Limit services and establish utilization controls for $2.9 million in 2010 11 and $281.7 million in 2011 12.
• Eliminate certain over the counter drugs (such as cough and cold medicine) and nutritional supplements ($2.9 million in 2010 11 and $16.8 million in 2011 12). This proposal would take effect April 1, 2011, after appropriate provider and beneficiary notification.
• Establish a maximum annual benefit dollar cap on hearing aids at $1,510, durable medical equipment at $1,604, incontinence supplies at $1,659, urological supplies at $6,435, and wound care supplies at $391 ($12.4 million in 2011 12). This proposal would take effect July 1, 2011, after appropriate provider and beneficiary notification.
• Limit prescriptions (except life saving drugs) to six per month ($13.6 million in 2011 12). This proposal would take effect July 1, 2011, after appropriate provider and beneficiary notification.
• Limit the number of physician or clinic visits to 10 per year ($238.9 million in 2011 12). The proposed limits are consistent with the aggregate utilization of these services at the 90th percentile of Medi Cal enrollees. This proposal would take effect June 1, 2011, after appropriate provider and beneficiary notification.
• (2) Increase cost sharing for $0.3 million in 2010 11 and $698.6 million in 2011 12.
• $5 co payments on physician/clinic/dental/and pharmacy ($3 for the relatively lower cost preferred drugs and $5 for others) visits ($0.3 million in 2010 11 and $360 million in 2011 12). This proposal would take effect July 1, 2011, after appropriate provider and beneficiary notification.
• $50 co payment on emergency room visits ($142.1 million in 2011 12). This proposal would take effect July 1, 2011, after appropriate provider and beneficiary notification.
• $100 per day co payment and $200 maximum for hospital stays ($196.5 million in 2011 12). This proposal would take effect April 1, 2011, after appropriate provider and beneficiary notification.
• A decrease of $14.8 million in 2010 11 and $120.1 million in 2011 12 by eliminating Full Scope Medi Cal for Certain Immigrants. This proposal includes that elimination of full scope Medi Cal for adult Newly Qualified Immigrants (legal immigrants who have been residing in the United States less than five years), immigrants Permanently Residing Under the Color of Law, and Amnesty Immigrants who are not defined as eligible Qualified Immigrants under federal law. Pregnant women would be excluded from this policy. This proposal would take effect June 1, 2011, after appropriate provider and beneficiary notification.
• A decrease of $20.5 million in 2010 11 and $188.9 in 2011 12 by eliminating Optional Adult Day Health Care Benefits. This proposal would take effect June 1, 2011, after appropriate provider and beneficiary notification.
• A decrease of $2.3 million in 2010 11 and $16.1 million in 2011 12 by rolling back the rate increase for Family Planning Services. This proposal would rescind substantial discretionary rate increase authorized by Chapter 636, Statutes of 2007, for family planning services. This proposal would take effect May 1, 2011, after appropriate provider notification.
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