California State Budget
From Korean Resource Center
|
To the Honorable Governor Arnold Schwarzenegger and State Legislators, The recent proposed cuts in health and human services will bring immediate disaster and undue hardships to our communities. Our immigrant seniors and disabled have committed their lives to support and foster care for future generations. They will be forced into homelessness and their health and livelihoods will be in danger if the Cash Assistance Program for Immigrants (CAPI) and the California Food Assistance Program (CFAP) are to be eliminated. Legal permanent residents are being unfairly singled out if their Medi-Cal benefits are restricted to emergency services only. Our children represent California’s future and reducing eligibility to 200% of the Federal Poverty Level for the Healthy Families Program will cut health benefits to children who have the greatest need. We the undersigned strongly believe that We Must Protect Our Families. We must protect the following critical programs:
There are other methods of addressing the budget issue. Although these are very tough economic times, we as Californians can make a difference if state tax revenues are increased through a progressive tax. By raising revenues, we can protect our most vulnerable population --- seniors and children. Part of the inherent problem lies in the inability to reach a consensus in our state legislature to speedily pass the state budget. California is one of the few states which requires a 2/3 majority to pass budgets and tax increases. However, a simple majority would ameliorate this process and ensure a more efficient method to pass our annual state budget.
|
|
Contents |
[edit] Implications to Korean American Families
California is facing an estimated $21.3 billion budget deficit. On May 14, Governor Schwarzenegger released his revised budget for the 2009-2010 fiscal year. The deep cuts to Health and Human Services (an estimated $2 billion) is extremely problematic for low-income families, seniors, the disabled and immigrants. Most recently, the governor’s office has announced that the children’s health insurance Healthy Families may be eliminated as well.
[edit] May 2009 Cuts
The following is a summary of the impact of some items in the Governor’s proposed budget*:
| Program | Proposal | Impact |
|---|---|---|
| Medi-Cal | Unspecified cuts of $750 million to Medi-Cal could include eligibility, provider payments and benefits. | State would seek permission from the Federal government and then specify these cuts. 46,000 Korean Americans are covered by Medi-Cal. |
| Medi-Cal | Reduced services for certain legal immigrants | Certain legal immigrants who have been living in California fewer than five years would not be eligible for preventive services or routine doctor visits starting October 1,2009 |
| Medi-Cal | Reduce Medi-Cal Reimbursements to Private Hospitals by 10% | Private hospitals would be less inclined to treat Medi-Cal patients as they are losing 10% of services rendered. |
| Medi-Cal | Eliminate Certified Application Assistance | Eliminate application assistance which would make it more difficult for the Medi-Cal eligible to enroll, and remain covered by the children’s health insurance coverage. |
| Medi-Cal | Pharmacy Reforms | Federal Drug Pricing would require providers to dispense ONLY drugs purchased through the program. This could mean that only lower cost generic drugs would be available to Medi-Cal recipients and there would be reduced coverage for drugs in general. |
| IHSS | Reductions in Eligibilty | The IHSS program helps seniors and disabled people who depend on their workers to help around with their basic needs, not all of which are medical. The Budget proposal would:
About 3,000 Korean American seniors are recipients of IHSS and stand to lose eligibility. |
| IHSS | Reduce State participation in IHSS Workers wages at $8 per hour and $0.60 per hour for health benefits. | Many IHSS workers may seek work elsewhere, providing further lack of access for those who are still able to participate in the program. |
| CalWORKS | Eligibility limits that disqualify one out of every four children on the CalWORKS program. |
There are about 14,560 enrolled Asian Pacific Islander Families in the CalWORKS Program. |
| SSI/SSP | Reduce Maximum Monthly Grants for SSI/ SSP to federal minimum | Individuals would receive $830 per month from their previous stipend of $870 and Couples $1,407 from $1,524 per month effective September 1, 2009. About 179,000 Asian Pacific Islanders receive these benefits in CA. |
| CAPI | Elimination of the CAPI Program | CAPI provides critical cash assistance over 11,000 lawfully residing immigrant families which include low-income immigrant seniors and people with disabilities who are ineligible for SSI. There are nearly 1,000 Korean American CAPI recipients. |
| CFAP | Elimination of the California Food Assistance Program | CFAP works like the federal food stamp program to provide essential nutrition assistance to over 23,000 low-income immigrants who have lawfully resided in the US for less than 5 years. Elimination of this program would bring hunger to over 4,000 Korean Americans. |
| 5-22-09 GOVERNOR’s UPDATE | Possible Termination of Healthy Families, the CalWORKS welfare-to-work program, mental health services and children's welfare programs . | Elimination of state sponsored public service programs for the children, the disabled and low income constituents. |
- Failure of Special Ballots 1A-1E
- This would result in an added $5.9 billion Budget Deficit. The contingency measures would call for more cuts to critical health and human service programs, as outlined below:
| Program | Proposal | Impact |
|---|---|---|
| Healthy Families | Reduce coverage from 250% of Federal poverty level to 200% | About 225,000 children from the 905,000 covered will lose Healthy Families coverage.
About 2,800 Korean American children will lose coverage. |
| IHSS | Additional Eligibility requirements | Eliminate IHSS domestic and related services for recipients who require minimal physical assistance, and eliminate all IHSS services for individuals who need supervision to perform activities. About 3,000 Korean American seniors are recipients of IHSS and stand to lose eligibility. |
| Adult Day Health Care | Reducing Benefits to 3 days a week | This reduces the eligibility of many aging individuals for social, nursing, medical, and therapeutic care provided by health centers to only three days a week. |
| AIM | Redirection of $60 million in Prop 99 Funds to Medi-Cal | The AIM program which provides low-cost health coverage for pregnant mothers. |
- This list is by no means comprehensive. For more information, please contact the Korean Resource Center. New Updates are constantly occurring and these numbers and proposals are subject to rapid change.
[edit] November 2008 Cuts
On November 6, the Governor called Legislatures into special session to address a budget shortfall of over $11 billion for the current fiscal year. He proposed $4.7 billion in new taxes—including a three-year increase in the state sales tax— and $4.5 billion in new cuts. These new proposed cuts include Medi-Cal, CalWorks, SSI, Food Assistance, immigrant services, and the safety net. If these cuts are approved, it will severely impact low- income families, seniors, the disabled and immigrants.
The Governor is hoping that current lawmakers whose terms expire November 30th will be more willing to approve the proposal. Without unified and corrective action, the state will be operating on very thin margins in December, and will have insufficient funds in early 2009. Additionally, the state’s ability to borrow money will also be compromised. The governor and legislative leaders have been meeting since the proposal, but a breakthrough does not seem imminent. The current legislative session expires on November 30th, although some speculation suggests lawmakers would need to vote on some kind of package before end of November—in order to allow the Legislature’s system to be ready for the swearing-in of the new legislative session beginning December 1.
This is a time for action. We are urging you to advocate against the Governor’s recent budget proposal on essential health and human services programs. Immigrants, seniors and low-income families need the most help and support in these difficult economic times.
| Program | Proposal | Impact |
|---|---|---|
| Medi-Cal | Eliminate services for adults Medi-Cal, including adult dental, chiropractic, speech therapy, podiatric, psychology, and optical | 2.5 million adults would not able to access critical services like dental, optical, and psychology. |
| Medi-Cal | Cut eligibility for parents in Medi-Cal from 100% of federal poverty line to 72%. Cutting parents from Medi-Cal who are working more than 100 hours a month | Income eligibility for low income families would be reduced from 100% to 72% FPL. A family of three would need to earn less than $1050 a month and work fewer than 100 hours a month in order to qualify. 429,000 poor parents would lose coverage |
| Medi-Cal | Reinstate share of cost for Medi-Cal for aged, blind and disabled individuals with income over the SSI/SSP limits | Couples who earn more than $1,400 per month ($870 for singles) would have to pay a share of cost for Medi-Cal |
| Medi-Cal | Eliminate full scope Medi-Cal for certain lawfully present immigrants | Would reduce services for certain legal immigrants who have not been in the United States for over five years; these immigrants would not be eligible for preventive services or routine doctor visits |
| HFP | Require new applicants to be in a waiting period of one year and until space is available | Korean American children are the second largest ethnic group to enrolled in Healthy Families Program. If a waitlist is imposed: Estimate of 162,750 children would be on that waitlist within six months; Enrollment would drop from 904,000 in November to 787,000 in June 2009 |
| SSI/SSP | Reduce state contribution to the federal minimum cutting $1 billion over a full year from the blind aged and disabled and reducing average grant funding by $77 per month | 1.3 million households would be negatively impacted, resulting in SSI/SSP budget savings of $1.1 billon for the 2009-2010 fiscal year. |
| CAPI | Eliminate CAPI, denying critical cash support to immigrant seniors and persons with disabilities who were ineligible for federal SSI | 80,600 legal immigrants would be impacted. There are over 1,000 Korean American CAPI recipients |
| Food Stamps | Eliminate California Food Assistance Program, | This state program provides food benefits to low-income legal immigrants. |
Next Steps:
The Governor is hoping that current lawmakers whose terms expire November 30th will be more willing to approve the proposal. Without unified and corrective action, the state will be operating on very thin margins in December, and will have insufficient funds in early 2009. Additionally, the state’s ability to borrow money will also be compromised. The governor and legislative leaders have been meeting since the proposal, but a breakthrough does not seem imminent. The current legislative session expires on November 30th, although some speculation suggests lawmakers would need to vote on some kind of package before end of November—in order to allow the Legislature’s system to be ready for the swearing-in of the new legislative session beginning December 1.
This is a time for action. We are urging you to advocate against the Governor’s recent budget proposal on essential health and human services programs. Immigrants, seniors and low-income families need the most help and support in these difficult economic times.
- The Honorable Arnold Schwarzenegger
- State Capitol Building
- Sacramento, CA 95814
- Fax: 916-558-3160
- CC
- Karen Bass, Speaker of the State Assembly, Fax (916) 319-2147
- Don Perata, Senate President pro Tem, Fax (916) 327-1997
- Denise Ducheny, Chair of Senate Budget and Fiscal Review Committee, Fax (916) 327-3522
- John Laird, Chair of the Assembly Committee on Budget, Fax (916) 319-2127
November 17th, 2008
Dear Governor Schwarzenegger:
I am writing to express my deep concern that cuts proposed under the state budget special session will substantially threaten the health and livelihood of low-income immigrants and Asians and Pacific Islanders in times of economic hardship. While I commend your proposals to raise revenue, our state will not fix its budget crisis by stripping our economy of crucial funds and slashing services, which ensure that vulnerable Californians can stay in their homes, feed their families and access critical medical care.
Of specific concern are proposed cuts that unfairly target immigrants and low-income Asian and Pacific Islander communities, including:
- The elimination of the Cash Assistance Program for Immigrants (CAPI), which serves as a lifeline of living assistance for lawfully present elderly, disabled or blind immigrants
- The reduction of living assistance to elderly, disabled or blind SSI participants and low-income families participating in the CalWORKs program
- The elimination of the California Food Assistance Program (CFAP), which makes vital food assistance available to lawfully present immigrants
- The exclusion of lawfully present immigrants from full scope medical care under the Medi-Cal program
- Decreased parent eligibility for Medi-Cal and the elimination of various services, including chiropractic, optical and adult dental care
- The restriction of a 60-month time limit on assistance available under the CalWORKs program to eligible children whose parents are ineligible for CalWORKs
As a Californian, I urge you to protect our state’s safety net. Year after year, vital services endure harmful budget cuts, yet our billion-dollar deficit continues to grow. Our leaders must look to new and effective solutions that increase state revenue—solutions that preserve the well-being of our economy and our families by investing in critical nutrition, health and living assistance services that strengthen our state, its values and its future.
Sincerely,
[edit] June 2008 Cuts
California is facing an estimated $17.2 billion deficit; on May 14, Governor Schwarzenegger released his revised budget for the 2008-2009 fiscal year. The deep cuts to Health and Human Services (an estimated $2.9 billion) can be troubling for low-income families, seniors, the disabled and immigrants. The following is a summary of the impact of some items in the Governor’s proposed budget*:
| Program | Proposal | Impact | Assembly Action | Senate Action |
|---|---|---|---|---|
| Medi-Cal | Lowers Medi-Cal eligibility from 100% to 61% of Federal Poverty Level | Income eligibility for poor families (under 1931b) would be reduced from 100% to 61% FPL ($12,000 a year for a family of 4). 430,000 poor parents would lose coverage by August 2011. | Rejected | Rejected |
| Medi-Cal | 10% provider and plan rate cuts in Medi-Cal | Provider and Plan Rate Cuts could signify greater difficulty for patients on Medi-Cal to find physicians to treat them. Only 50% of CA physicians accept Medi-Cal due to the low reimbursement rate. | Approved | Rate reduction cut to 5% |
| Medi-Cal | Reduced services for certain legal immigrants | Reduced services for certain legal immigrants who have not been in the United States for over five years; these immigrants would not be eligible for preventive services or routine doctor visits. | Rejected | Rejected |
| Healthy Families Program | Increase family contributions from $9 to $16 per month or $15 to $19 per month depending on income | Working families may have difficulty with increased family contributions. For some children a 78% premium increase and a 50% increase in co-payment for non-preventive services. An estimated 60,000-70,000 children will lose their Healthy Families coverage. | Approved some premium increases | Approved some premium increases |
| In-Home Support Services (IHSS) | Reduce the number of hours for certain non-medical services by 18% | The IHSS program helps seniors and disabled people who depend on their workers to help around with their basic needs, not all of which are medical. Time devoted to meal preparation, laundry, and other domestic errands may be cut by 18% in 2008-2009. | Rejected | Rejected |
| In-Home Support Services (IHSS) | Requires recipients with less severe impairments to pay “share of cost” | The “share of cost” is estimated to average $427 per month. | Rejected | Rejected |
| Naturalization Services Program (NSP) | 10% cuts to Naturalization Services Program | The cuts will negatively impact individuals seeking to become citizens who will have to wait longer to receive the assistance they need on their applications. The backlog will only grow longer, as 1,130 who will not receive naturalization services will probably remain on the wait list. | Approved | Approved |
| Supplemental Security Income/State Supplementary Payment (SSI/SSP) | The budget eliminates the SSI/SSP cost of living adjustment (COLA) for the blind, aged and disabled scheduled for June 2008 | This results in SSI/CAPI budget savings of $820 million for the 07-8 and 08-9 budget. | Approved suspending the June 2008 COLA | Approved suspending the June 2008 COLA |
| Supplemental Security Income/State Supplementary Payment (SSI/SSP) | It also proposes to suspend the 2008-9 SSP COLA also (to be applied in January 2009 and June 2009). | This results in SSI/CAPI budget savings of $820 million for the 07-8 and 08-9 budget. | Both January and June 2009 COLAs are retained | Both January and June 2009 COLAs are retained |
| Cash Assistance Program for Immigrants (CAPI) | The Governor’s proposal would eliminate CAPI, denying critical cash support to immigrant seniors and persons with disabilities who were ineligible for federal SSI. | There are nearly 1,000 Korean American CAPI recipients. | Rejected | Rejected |
| California Food Assistance Program/Food Stamps Program | Cut California Food Assistance Program benefits by 10%, and Food Stamp administrative costs by 4% | Reduces monthly food benefit level from $91 to $82. The 10% cut for California Food Assistance Program benefit will save $2.5million dollars; the 4% cut for Food stamp administration $14.9M | Rejected | Rejected |
Next Steps:
The budget process takes months, from January to June, or even later if nothing has been settled. After each House passes their version of the budget with a two-thirds vote, the Assembly’s Budget Bill passes to the Senate; likewise, the Senate’s Budget Bill passes to the Assembly. If there are any differences, (i.e. Medi-Cal Provider Rate Cuts), the Budget Conference Committee reaches a compromise. The conference version goes back to the two houses for a two-thirds vote, and is sent back to the Governor. Sometimes, if the Conference Committee cannot reach agreement, the “Big 5” (the Governor, the President pro Tem of the Senate, the Speaker of the Assembly, and the minority leaders of both the Senate and the Assembly) may bring them back for discussion and future implementation. Community members should be aware that while the legislative bodies are no longer discussing these proposed cuts, they may still come back. Please don’t forget to advocate for your causes directly to the Governor.
<html>*</html> This list is by no means comprehensive. For more information, please contact the Korean Resource Center
[edit] Past Petition Campaigns
[edit] Organizational Petition to Stop Budget Cuts (2009)
To the Honorable Governor Arnold Schwarzenegger and State Legislators,
The recent proposed cuts in health and human services will bring immediate disaster and undue hardship to our community’s elderly, children, and college students.
Our immigrant elders and disabled have committed their lives' efforts to support and foster care for the future generations. They will be forced into homelessness and their health and livelihoods will be in danger if the Cash Assistance Program for Immigrants (CAPI) and the California Food Assistance Program (CFAP) are to be eliminated according to recent proposals. In addition, we feel these cuts unfairly single out legal permanent residents by restricting their Medi-Cal benefits to emergency services only. Our children represent our immediate future, and reducing eligibility to 200% of the Federal poverty level for the Healthy Families Program will cut health benefits to the children who have the greatest need. The recent proposals considering the elimination of Healthy Families will negatively impact the future health of our children and California.
We the undersigned strongly believe that We Must Protect our Seniors, Children and College Students. We must protect the following critical programs:
- Medi-Cal, CAPI and CFAP for lawfully present low-income immigrant seniors
- Healthy Families Program for all children and CalWorks for low-income families
- Cal Grants Program for low-income College Students
We also believe there are other methods of addressing the budget issue. Although these are very tough economic times, we as Californians can make a difference if state tax revenues are increased through a progressive tax. By raising revenues, we can protect our most vulnerable population --- seniors and children. Part of the inherent problem lies in the inability to reach a consensus in our state legislature to speedily pass the state budget. California is one of the few states which requires a 2/3 majority to pass budgets and tax increases. However, a simple majority would ameliorate this process and ensure a more efficient method to address our budget crisis for our future years.
Especially in these difficult times, we as Californians must all come together and participate in solutions for our budget because it directly affects our daily lives and our communities. For a stable, healthier future, we urge you to save these programs.
Sincerely,
