Hearing on the budget

There is some good news on budget. Hearing will be taking place on an \
new budget. I got this email

CDCAN DISABILITY RIGHTS REPORT

#177-2010 – OCTOBER 5, 2010 – TUESDAY

CALIFORNIA DISABILITY COMMUNITY ACTION NETWORK: Advocacy Without Borders: One Community – Accountability With Action - California Disability Community Action Network Disability Rights News goes out to over 55,000 people with disabilities, mental health needs, seniors, traumatic brain & other injuries, veterans with disabilities and mental health needs, their families, workers, community organizations, including those in Asian/Pacific Islander, Latino, African American communities, policy makers and others across California.

To reply to this report write: MARTY OMOTO at martyomoto@rcip.com WEBSITE: www.cdcan.us TWITTER: www.twitter.com - “MartyOmoto”



California Budget Crisis:

Budget Conference Committee To Meet Wednesday at 1:30 PM – First Public Review of Budget Agreement

Vote On Long Delayed State Budget Scheduled for Thursday by Assembly and State Senate – Passage Is Expected As End of Budget Stalemate Nears



SACRAMENTO, CALIF (CDCAN) [Updated 10/05/2010 12:25 PM (Pacific Time)] - With California now 97 days without a state budget, the Budget Conference Committee, chaired by Sen. Denise Ducheny (Democrat – San Diego) will meet Wednesday at 1:30 PM, at the State Capitol in Room 4203, in the first public review of the budget deal to close the over $19 billion budget deficit agreed to by the Governor and four legislative leaders last week. The hearing will be televised and webcast live on CalChannel.



Hardcopy agendas for the Budget Conference Committee hearing will be available at both the Senate Budget and Fiscal Review Committee and Assembly Budget Committee offices in the State Capitol, on Wednesday morning at 09:00 AM. Limited number of copies will be available in the hearing room. At some point the agenda will be available on the Budget Conference Committee’s website, as early as late this evening or sometime tomorrow.



It is not certain what specifics will be discussed at the Budget Conference Committee hearing – though it is likely to provide an overview of the agreement. It is not certain what – if any – votes will be taken at this hearing, which technically is not required.

It is not likely that there will be public testimony, which normally is not allowed during any of the Budget Conference Committee hearings.



Debate and Final Vote on Budget Thursday

· Debate and final vote by both the Assembly and State Senate on the main budget bill is scheduled to begin Thursday (October 7) likely sometime in the morning.

· To pass the State budget, 2/3rds vote is required in both the 80 member Assembly (54 votes needed for approval) and the 40 member State Senate (27 votes needed to pass).

· The main budget bill is currently AB 190, [the exact bill number could change to another bill when the vote is actually taken] in addition to several budget related bills (no bill numbers yet). .

· Those bills are called budget “trailer bills” because they follow or trail the main budget bill. Budget trailer bills are critical because they contain necessary changes in existing state law to implement reductions or other policy changes that are in the main budget bill or are part of the overall budget agreement reached by the Governor and legislative leader. Use of the budget trailer bills have also been widely criticized in the last 10 years because often major policy changes are included without going through the normal legislative bill process covering several months.

· None of the bills have yet been amended officially that reflect the budget agreement reached by the Governor and four legislative leaders. That will likely not be available until late Wednesday afternoon or even Thursday morning at the earliest.



Passage of Budget Agreement Expected on Thursday

While there will likely be some glitches, especially in the area dealing with state employees, furloughs and pension reforms, passage of the budget agreement is expected. With the budget now over 3 months late, and voter approval of the California Legislature at a historic record low of 10%, and a pivotal general election just weeks away, members of both parties will not likely want to prolong the stalemate any longer.



In answering a question about whether the Legislature will approve the budget deal, Senate President Pro Tem Darrell Steinberg (Democrat – Sacramento) said that “…it’s a five party agreement, four legislative caucuses and the Governor. Once you cross that threshold and shake hands, you then work together to get the votes…”



Aaron McLear, spokesman for the Governor said yesterday that “..we expect it [the budget] to pass on Thursday. I am sure there will be some…[but] these are tough votes….”



SOME QUESTIONS & CDCAN ANSWERS ON THE BUDGET DEAL



Are there any new cuts or larger reductions in this agreement?

The total permanent spending cuts for the 2010-2011 State budget year agreed to last week by the “Big Five” nearly match what the State Senate and Assembly Democrats proposed in early August – and what the Budget Conference Committee – controlled by the Democrats – approved and reported out on August 6.

In August the Democrats approved reductions of nearly $7.2 billion for the 2010-2011 State budget year that began July 1, 2010 (and ends June 30, 2011). The latest budget agreement reached by the Governor and legislative leaders appears to have bumped up that total slightly – to about $7.5 billion.

While the difference between what the Democrats approved as cuts in August and what they reportedly agreed to as part of the budget deal might be small when compared to the overall State budget – it could possibly mean some additional or cuts to some programs and services that previously were rejected. The difference in the overall spending reduction number could also be attributed to more accurate information on actual and projected spending for 2010-2011.

One thing appears certain: the level of cuts won’t be LESS than what the Democrats approved in early August, and there could be some slight increases in certain cuts to some programs and services.



What other changes could be in the budget agreement that impacts services and programs for people with disabilities, mental health needs, seniors and low income families and workers and organizations?

Uncertain – though again in terms of changes to certain programs and services, what the Democrats approved in early August, are likely to be part of the final budget deal. What is not known yet if the Governor and legislative Republican leaders were successful in persuading Legislative Democratic leaders to include their proposals regarding felony convictions and other requirements for In-Home Supportive Services (IHSS) workers.



The media reports that the budget deal reduced spending in the 2010-2011 State Budget from $12 billion to about $7.2 billion. Is that true?

The Governor proposed in January and May 2010 spending reductions of about $12 billion – including outright elimination of programs and services and deep cuts that no one – not even Republicans – believed that the Democrats would ever consider approving.

To get a picture of what additional cuts were made or not made however, the real number to compare is the total spending cuts that the Assembly and State Senate Democrats DID agree on and approve (through the Budget Conference Committee that they control) in early August. In August, the total spending cuts approved by Democrats was close to $7.2 billion. The budget agreement reached last week reportedly contains cuts at about $7.5 billion.



Are there are any new taxes in the budget deal?

No.



When Will Be the Budget and Budget Related Bills Take Effect?

Immediately after the Governor signs the main budget bill – which could be as early as Friday or the weekend (assuming the Legislature passes the budget on Thursday as expected).

What is not clear yet is when certain cuts in the budget will take effect – such as the additional reduction in payments to most regional center providers and regional center operations.

Normally those cuts would take effect at the start of the budget year – July 1st, but with the budget over three months late, many advocates for people with disabilities, mental health needs, seniors, low income families and workers and others are deeply worried about the impact of cuts that are made retroactive covering such a long time period. Many providers who have struggled to meet costs after payments from the State were stopped due to the budget delay – including taking out loans and paying interest on those loans that currently are not reimbursable – may find it difficult to continue with additional cuts that are also retroactive to July 1st.



Does the budget agreement reached last week by the Governor and legislative leaders solve the budget crisis and future deficits?

No, though it does allow them to at least get a budget passed and signed after over three months.

The agreement contains more optimistic projections of money (revenues) coming from the federal government and from the California economy.

Not everyone believes those more optimistic projections are realistic – but the higher number allows the Governor and Legislature to, at least on paper, balance the State budget.

Meanwhile, the ongoing state budget shortfalls will likely continue – with budget analysts projecting – no matter who is elected governor on November 2nd – another state budget deficit that could be as high as $10 to $20 billion next year. The new governor will have to submit a new proposed budget to the Legislature on or before January 10th.





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