Next Year's California Budget Deficit of $10 Billion and the Most Vulnerable in Our State

[courtesy of California Progress Report]

Major Impact On People With Disabilities, Seniors, Poor

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

The California budget crisis will grow dramatically worse by June 2008, with a total budget shortfall that will grow to over $10 billion unless there is "corrective action" taken by the State that could include proposals for major increases in revenues and massive spending cuts next year, says a report released yesterday by the Legislative Analyst Office (LAO), the non-partisan agency that reviews budget issues for the State Legislature. The full report is available through the LAO.

The report, released by Legislative Analyst Elizabeth Hill, who is widely respected by both parties in the Legislature, confirms what others have been claimed for the past several weeks that California is now facing the most serious budget crisis since 2003 that will have major impact especially on health and human service programs, including those critical to children and adults with disabilities and other special needs, seniors and low income families. At a time when policymakers are focused on major health care reform in California, the budget areas especially vulnerable include Medi-Cal, In-Home Supportive Services, SSI/SSP (Supplemental Security Income/State Supplemental Payment), Developmental Services (regional center funded community-based services, and developmental centers), mental health services, affordable and accessible housing and transportation.

Legislative Analyst Hill, who said that California's budget situation has deteriorated significantly, underscored however that her report is a "projection" of what would happen if changes are not made to the state budget - and not a prediction of what the Governor and Legislature will end up adopting in terms of changes in law and spending cuts or increase in revenues. She however urged policymakers to take action - including those that will impact the current year budget.

Governor Orders Agencies to Submit Plans for Major Spending Cuts - No Decisions Yet

In response to the growing budget crisis, Governor Arnold Schwarzenegger on November 5th ordered all state agencies to submit plans that call for a 10% reduction in spending that he will consider when he puts together his proposed State budget for 2008-2009 that he will submit to the Legislature on January 10th.