State Budget
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 on this page is intended to provide current summaries of budget issues which affect Far Northern Regional Center.
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State Budget Crisis: (Monday, May 14, 2012)
GOVERNOR’S BUDGET REVISION PROPOSAL CALLS FOR 1.25% REGIONAL CENTER AND PROVIDER PAYMENT REDUCTION – CALLS FOR MORATORIUM ON MOST ADMISSIONS TO DEVELOPMENTAL CENTERS
SACRAMENTO - Governor Brown’s revised budget proposal – known as the “May Revise” – calls for implementing a $200 million in State general fund reductions with a partial extension of the existing payment reductions to regional center operations and most regional center providers. The Governor’s plan calls for a 1.25% payment reduction for a savings to the State general fund of $30.7 million beginning July 1, 2012, instead of the existing 4.25% payment cut. The reduction is less than what many advocates feared given the size the budget hole the State is facing. However the Governor’s proposal now includes the developmental services budget - $50 million in State general fund spending for the 2012-2013 State budget year in unspecified cuts – if voters reject his tax initiative proposal on the November 2012 ballot. That number would expand to $100 million in subsequent years.
In a major development, the Governor’s budget revision also proposes a moratorium on most admissions to the State’s four developmental centers and one smaller community facility except for limited circumstances, where the courts refer people with developmental disabilities due to competence related issues. The department would work to restore competency for those individuals.
Other major areas where the Governor is proposing to achieve the $200 million reduction to developmental services budget:
• $30.7 million in State general fund cuts resulting from partial extension of payment reduction to regional center operations and most providers (1.25% instead of the existing 4.25%) beginning July 1, 2012.
• $61 million in State general fund savings resulting from an “aggressive” effort to add more people with developmental disabilities onto the federal Medicaid waivers under the developmental services budget
• $79.8 million in State general fund savings as a result of the July 1, 2012 implementation of SB 946, the autism health insurance mandate bill. The original savings estimate of $61 million was increased as a result of a determination by the Department of Managed Health Care that CALPERS and the Healthy Families program would be required to comply with the provisions of SB 946 due to compliance of the mental health parity law.
• $4.2 million in savings to the State general fund by implementing the independent assessments of people with developmental disabilities in the Supported Living program, but eliminating the previous proposal that called for an independent assessor to do that work. $3 million of the $4.2 million savings would result from not going forward with an independent assessor – and adopting the proposal put forward by the association of supported living agencies.
• $20 million in reductions and savings to the State general fund impacting people with developmental disabilities identified as people with “challenging needs” or “difficult to serve”. That would be achieved through a moratorium on most admissions to the developmental centers and the one community facility. Would include a new program at Fairview Developmental Center for those persons who are admitted through a court referral to restore “competence” in a 30 or 90 day program. The Department of Developmental Services will be proposing budget related legislative language to implement this reduction and savings program.
Not part of the $200 million reduction in State general fund spending is the inclusion of developmental services – about $50 million in State general funding that may be part of the 2012-2013 State Budget “trigger cuts” if the Governor’s proposed tax initiatives does not pass in November. The $50 million would expand to $100 million in the following budget years.
The proposed reduction was announced this morning (May 14) as part of the Governor’s proposed budget revisions to the 2012-2013 State Budget plan he submitted to the Legislature in January. His proposals, especially those requiring changes in State law to implement actual spending reductions, will require approval from the Legislature.
This report is from: Marty Omoto at This email address is being protected from spambots. You need JavaScript enabled to view it. Website: www.cdcan.us
State Budget Crisis: (Wednesday, March 28, 2012)
DEPARTMENT OF DEVELOPMENTAL SERVICES ANNOUNCES FEDERAL GOVERNMENT RENEWS $1 BILLION 5 YEAR MEDICAID HOME AND COMMUNITY-BASED SERVICES "DD" WAIVER - APPROVAL WAS EXPECTED AND PART OF THE GOVERNOR'S PROPOSED BUDGET
SACRAMENTO - In a welcome bit of good – though expected – budget news, the Department of Developmental Services announced this morning that the federal Centers for Medicare and Medicaid Services has renewed California’s Medicaid Home and Community-Based Services Waiver – sometimes referred to as the “DD (Developmental Disabilities) Waiver” that will provide about $1 billion in federal funding for a wide range of community-based services and supports for people with developmental disabilities through the 21 non-profit regional centers. The renewal is for another five years.
The Department of Developmental Services, the state agency that oversees the 21 regional centers who in turn determine eligibility and coordinate funding provided by community based organizations and individuals who provide the services and supports, said the renewal of the waiver – which was expected – is “…consistent with the department’s goal to maximize federal funding.”
The department indicated that the renewed Home and Community-Based Services Waiver includes new services previously not eligible for federal funding such as vouchered community-based training services, participant-directed nursing, financial management services and behavior management technician services.
The additional waivered services will help offset the need for State general funding. However, the approval of the waiver was expected and already calculated in the Governor’s proposed 2012-2013 State Budget.
This report is from: Marty Omoto at This email address is being protected from spambots. You need JavaScript enabled to view it. Website: www.cdcan.us
California Budget Crisis – Breaking News: (March 1, 2012)
THE LEGISLATIVE ANALYSTS OFFICE HAS RELEASED THE FOLLOWING REPORT:
The 2012-13 Budget: Developmental Services Budget Update
Over the three-year period from 2009-10 to 2011-12, the Department of Developmental Services’ (DDS) General Fund spending has remained relatively flat. This has been the case in spite of rapidly growing caseloads and other cost pressures.
In this brief report, we discuss the measures adopted by the Legislature over these three years to reduce General Fund costs in both Developmental Centers (DCs) and Regional Centers (RCs).
This report is available using the following link:
http://lao.ca.gov/laoapp/PubDetails.aspx?id=2584
Special Links To Budget Related Sites:
California's Legislative Analyst's Office
Disability Community Action Network
Talking Web Page