Budget Update The regional centers in California rely on funding from the Federal and
State government in order to provide services to consumers and their families.
The State budget is of particular concern due to the immediate impact it has on
regional center programs. The information provided on this page is intended to
provide current summaries of budget issues which affect Far Northern Regional
Center.
UPDATE ON GOVERNOR'S ACTIONS
Special Session: No Call Yet
SACRAMENTO - Recent events in
Sacramento may impact people with disabilities, mental health needs, seniors,
veterans with disabilities and mental health needs, their families, low income
children, community organizations, providers, facilities, support workers who
provide supports and services and other advocates.
SPECIAL SESSION
Latest Information:
* No call yet for a special session on the growing budget shortfall (estimated
at over $5 billion and growing) or the State's more immediate cash flow crisis
that impacts the State's ability to pay its bills.
* Only a governor can call for a special session of the Legislature - though it
is up to the Legislature to determine how often they meet in special session and
what action is taken.
What's next:
* It seems more likely at this point (as of October 9th) that such a special
session won't be called by the Governor until after the State is able to borrow
several billions of dollars by the end of this month in order to pay its bills.
Background:
* This type of borrowing is normal during the periods of the year when the
state's revenues (including taxes) slow down.
* What is not normal and is the cause for the immediate concern in California
is the national financial crisis that until last week, literally froze credit
across the country - including the ability of local governments (like counties)
and states to get loans that in previous times were easy to get to cover normal
expenses.
Impact:
* The issue of cash flow - and the ability of the State to borrow enough funds
to pay its bills by the end of this month has tremendous impact on organizations
and providers who provide supports and services to children and adults with
disabilities, mental health needs, seniors, veterans and low income families and
children.
* Many organizations who in previous years and months could take out short term
loans to cover the times when the State could not pay them (like in the previous
budget stand-off) may not have the ability to do so again or in the near
future as a result of the national financial crisis that has impacted borrowing
and credit.
This information comes from the CDCA Network:
Marty Omoto, director/organizer
California Disability Community Action Network
1225 8th Street Suite 480 Sacramento, CA 95814 VOICE PHONE:
916/446-0013
FAX number: 916/446-0026 email:
martyomoto@rcip.com
California
Budget Crisis - Again
* POSSIBLE SPECIAL SESSION ON STATE BUDGET
* GOVERNOR MAY CALL SESSION BEFORE 11/30
* SHARP DROP IN STATE REVENUES
* NATIONAL FINANCIAL CRISIS HAS MAJOR IMPACT
Spending on Programs and Services Impacting People With Disabilities, Mental
Health Needs, Seniors and Others Could Be Vulnerable In A Special Session
SACRAMENTO -
With the financial picture worsening in California, the State budget that was
just enacted September 23rd, after a three month stand-off, could be
the focus of a possible special session of the Legislature that Governor Arnold
Schwarzenegger may call before November 30th. The news comes less than 15 weeks
before the Governor must present his proposed budget for 2009-2010 on January
10th.
While no
official announcements have been made and a special session is not certain, if
it is called, spending on programs and services to those serving children and
adults with disabilities, mental health needs, seniors, low income families and
children, community organizations, facilities and workers who provide supports
and services, and spending on public education in general, are likely
vulnerable.
The Governor
and legislative leaders met last Wednesday and plan to meet later this week to
discuss next steps in addressing the financial crisis impacting California,
including the worsening budget situation.
California,
like other states, is being hammered by the national financial crisis, with the
recent bail-out/rescue legislation passed by Congress and signed by the
President last week not likely to provide any immediate help.
The financial
situation for the State is hitting at two levels: one is the immediate need for
cash that the State will need by the end of the month to actually pay its bills,
and the other is the continuing sharp drop in revenues coming in.
CASH FLOW
PROBLEM
* The Governor and State Treasurer, Bill Lockyer, a Democrat, publicly warned
last week that the national financial crisis was impacting the State's ability
to take out what is normal and routine borrowing during the times of the year
when tax revenues are slow. The national financial crisis impacted the ability -
or willingness of financial institutions to provide credit not only to
businesses and individuals, but for local governments and states, like
California, to borrow in order to pay bills until more tax revenues come in.
* The Governor and the State Treasurer are hopeful that the bail-out/rescue plan
passed by the Congress and signed by the President on Thursday last week will
help ease the credit situation for California. The Governor however is not
totally confident and continued to warn the federal government that California
may need federal money to borrow in order to pay its bills if it is not able to
borrow funds. If that happens and the State cannot borrow funding to pay its
bills, the Governor has appealed to the federal government for loans of up to $7
billion.
* The problem of organizations, including nursing homes and other health
facilities serving people with disabilities and seniors and other entities not
being paid by the State could happen in November though the impact will vary
depending on the vendor and organization and their own ability to take out lines
of credit until payment is made. However the financial crisis nationally has
impacted availability of credit for many businesses, organizations and other
entities.
REVENUE PROBLEM
The State faces a sharp drop in revenues for the first three months of the State
Budget year ending September 30th, including mounting job losses.
* Those drops in revenues mean that the State Budget - a budget that virtually
everyone felt would have a shortfall next year, is running up a shortfall sooner
and that the expected deficit for 2009-2010 will likely be enormous, unless
something is done immediately.
NEXT STEPS
GOVERNOR
* Only the Governor has authority under the State Constitution to call a special
session of the Legislature for certain specific reasons. The Legislature must
meet - but they are not required by the Constitution to act.
* The Governor also has authority under the State Constitution to declare - as
he did in January - a "fiscal (budget) emergency" that requires the Legislature
to respond within 45 days.
* But if they fail to act by then, the State Constitution doesn't give much
authority to force them to act - especially at this point in the year. If the
Legislature does not act (meaning does not send a bill or bills addressing the
fiscal emergency) then it cannot pass other bills or adjourn in recess. The
Legislature has no bills to act on or pass during the fall and really will not
have any to act on until February next year.
LEGISLATURE
* The Legislature finished its work on regular bills as of August 30th, and came
back into session in September because of the State Budget.
* Except for this year, the Legislature has never before met beyond its August
30th adjournment date during the second year of the Legislative session. The
Legislature must send any bill to the Governor on or before November 15th.
* New members of the Legislature will be elected November 6th though they will
not take office until December.
* Current legislators who are termed out of office, including Senate President
Pro Tem Don Perata (Democrat - Oakland), or who are retiring for other reasons,
serve until November 30th.
* New members elected in November take office the first week of December and
will be sworn in at the State Capitol in brief sessions held possibly December 1
or 2 (Monday or Tuesday)
* The Governor could call a special session of the current Legislature, but that
would mean they must meet and complete work before November 30th - the final
day on the job for termed out or retiring legislators (they would have to
present a bill to him on or before November 15th however, based on one read of
the State Constitution
* The Governor could call a special session in December sometime after the new
Legislature is sworn in, though many observers feel the financial and budget
crisis may need to be addressed much sooner than that.
This information comes from the CDCA Network:
Marty Omoto, director/organizer
California Disability Community Action Network
1225 8th Street Suite 480 Sacramento, CA 95814 VOICE PHONE:
916/446-0013
FAX number: 916/446-0026 email:
martyomoto@rcip.com
Governor
Signs Late State Budget:
(Sacramento) - Gov. Arnold Schwarzenegger signed a $103.4 billion general-fund
spending plan in his office with little fanfare today, officially ending the
state's longest-ever budget delay at 85 days.
The
Republican governor vetoed $510 million in line-item expenditures.
Schwarzenegger's signature ensures the state will begin paying nursing homes,
community colleges and state vendors for services. It remains unclear when the
state will begin rehiring the 10,000 temporary and part-time workers
Schwarzenegger terminated July 31.
Unless
the economy dramatically improves, California stands to face another
multibillion-dollar budget gap next year, fiscal analysts believe. Lawmakers
will ask voters to expand the California Lottery in a special election next
year, hoping to obtain a $5 billion advance from Wall Street investors in
exchange for future lottery revenues to reduce next year's debt.
Schwarzenegger won concessions last week from lawmakers to strengthen the
state's rainy-day fund starting in 2010 when he threatened to veto the first
budget package lawmakers sent him.
Democratic and Republican lawmakers sparred for months in the longest standoff
in state history. Majority-party Democrats and Schwarzenegger sought tax
increases in addition to spending cuts to close the gap, but Republican
lawmakers, whose votes were necessary to meet the state's two-thirds budget vote
requirement, blocked those proposals.
Unlike previous
years, Schwarzenegger signed the budget without legislative leaders and without
a ceremony in the Capitol rotunda.
The state's
$103.4 billion general fund budget represents a slight increase of $58 million
over last year's $103.3 billion spending.
California
Budget Impacts:
* BUDGET SIGNED TODAY
* GOVERNOR MAKES LINE ITEM VETOES
* CalWORKS PROGRAM HARDEST HIT
* ADULT PROTECTIVE SERVICES REDUCED
* DEAF ACCESS PROGRAM FACE ADDITIONAL CUTS
MOST OTHER PROGRAMS AND SERVICES INCLUDING IHSS, SSI/SSP, SURVIVE WITHOUT
ADDITIONAL REDUCTIONS BY GOVERNOR
SACRAMENTO
- Governor Arnold Schwarzenegger signed the main budget bills (AB 1781 and AB
88) late this morning (Tuesday, September 23), and made over $500 million in
line item vetoes. The CalWORKS program - California's "welfare to work" program
that serves thousands of low income children and families - many of them with
special needs and disabilities, was hardest hit by the line item veto, with an
additional $70 million reduction on top of what the Legislature approved in the
budget bill passed last week. See the CDCAN website for an official copy of all
the Governor's line item vetoes that he made today and more details on the
budget itself at
www.cdcan.us.
Two
programs overseen by the Department of Social Services, Adult Protective
Services and Deaf Access Program were also hit with additional reductions. The
reduction to Adult Protective Services was especially significant - and a
reduction that was fought earlier this year by advocates.
This information comes from the CDCA Network:
Marty Omoto, director/organizer
California Disability Community Action Network
1225 8th Street Suite 480 Sacramento, CA 95814 VOICE PHONE:
916/446-0013
FAX number: 916/446-0026 email:
martyomoto@rcip.com
CONTROLLING REGIONAL CENTER COSTS
This report,
mandated by the Budget Act of 2007, required the Department of Developmental
Services to "develop a plan of options for consideration by the Administration
and the Legislature to better control regional center costs of operating and
providing state-supported services."
