Bad News Likely Wednesday When Governor Schwarzenegger Releases Budget Changes in “May Revise”

[courtesy of California Progress Report]

• New major spending cuts will likely hit critical programs

• Advocates fear major impact on disability rights for hundreds of thousands of people with disabilities, mental health needs, seniors & workers

By Marty D. Omoto
Director/Organizer
California Disability Community Action Network

Bad budget news will get worse on Wednesday, May 14, when Gov. Arnold Schwarzenegger will release budget revisions and changes (referred to as the "May Revise") with policymakers and advocates fearing that that new massive permanent spending cuts to a wide range of critical programs are now all but certain to be proposed.

With a budget shortfall exploding from $8 billion to over $16 billion and possibly as high as $20 billion by the end of the 2008-2009 State Budget year, the Governor and Legislature are faced with diminishing number of choices to close the widening gap.

The crisis differs from previous years because now legislators and the Governor are now looking for permanent ways to reduce spending rather than temporary cuts or reductions to programs. The 10% Medi-Cal rate reduction and regional center reductions called "cost containment" were all made permanent by the Legislature and Governor in February (though the Medi-Cal cut is now being contested in court with two lawsuits filed recently).

Advocates Fear Devastating Cuts Impacting Thousands

Advocates and policymakers fear that nearly every program critical for people with disabilities, mental health needs, seniors, people with MS, Alzheimer's and other disorders, people with traumatic brain and other injuries, foster and adoption assistance families, CalWORKS families that will impact Medi-Cal, adult protective services, aging programs, mental health programs, services for the blind, services for persons who are deaf, special education, accessible employment, accessible and affordable transportation and housing services, and community based organizations and workers who provide critical services and supports, all which will be hit by possibly new major spending reductions on top of cuts already proposed or implemented this year. Word from some Administration officials and advocates say that the cuts will likely be "major".

Advocates fear that more cuts will have dramatic impact on rights of people with disabilities, seniors and mental health needs and the State's implementation of the Olmstead Decision, the 1999 US Supreme Court decision that required the states to take measures to avoid the unnecessary institutionalization of people with disabilities, mental health needs and seniors.

Certain programs, such as Medi-Cal - already hit with an over $1 billion reduction in reimbursements to community-based providers with a 10% permanent rate reduction scheduled to go into effect July 1, 2008, are vulnerable for more cuts. SSP/SSP, regional center funded services including possible rate reductions to other programs, In-Home Supportive Services, a wide range of aging programs, all face current and likely new major cuts.

No official word has come from the Schwarzenegger Administration on any cuts - though officials over the weeks have warned of major cuts.

Governor and Legislature Faced With Diminishing Choices