[tri-med] For those in California

----- Original Message -----
From: Marty Omoto, Legislative Director
To: undisclosed-recipients:
Sent: Saturday, August 24, 2002 11:51 PM
Subject: CA UCP BUDGET UPDATE: ASSEMBLY MOVES ON EMERGENCY FUND AND TO BREAK
THE IMPASSE


CA UCP BUDGET UPDATE
August 24, 2002 - Saturday evening
ASSEMBLY DEMOCRATS REVERSE THEMSELVES AND PROPOSE BROAD EMERGENCY FUNDING;
ASSEMBLY SPEAKER RESUMES BI-PARTISAN MEETINGS WITH REPUBLICANS TO BREAK
IMPASSE

Assembly Democrats reversed themselves completely and proposed a temporary
emergency funding measure that essentially would continue the 2001-2002
spending level authority for state services, replacing a narrower Republican
proposal, in an all day Saturday (August 24) session.  The Assembly
Democratic proposal was amended into SB 676, by a vote of 59-6, and referred
to the Assembly Budget Committee for further action.  A more detailed report
on the provisons and the comments made by the Assembly members (including
full UCP transcript) will be sent out later Sunday morning (August 25).

The Democratic proposal would provide for temporary emergency funding based
on the funding levels for all programs and services in the 2001-2002 budget,
which expired June 30, 2002.  The temporary emergency appropriation measure
would have no expiration date, while the Republican proposal called for
emergency funding up to September 15. There was concerns raised by some
Republicans about no expiration date for the emergency funding because they
felt it could prolong the impasse - or for some, continue the funding of
programs they oppose.
Both proposals specifically removed the Legislature - and presumably the
state constitutional officers, from being paid while the impasse continues -
continuing the action the State Controller instituted July 1.

At the same time, Assembly Speaker Herb Wesson (D-Los Angeles) called a
resumption of the meeting of the "Big 10 Committee", consisting of leaders
of both parties to seriously negotiate and take steps to break the stalemate
on the budget.  The  resumption of the meetings was one of the key demands
made by the Assembly Republicans - one that was supported Thursday evening
by some moderate Democrats.

The Assembly Democratic leadership, while bowing somewhat to the Assembly
Republicans and public pressure on the need for emergency funding of
programs and services, are hoping that resumption of the "Big 10 Committee"
will result with a break in the impasse , and passage of the budget within
the next week, and no need for an emergency funding bill.

The Governor's position on the emergency funding proposed by the Assembly
Democrats is not known, though earlier in the week, he publicly stated he
was against the Republican proposal.

The Assembly Democrats on Thursday evening strongly opposed the Assembly
Republican proposal for emergency appropriations for services and supports
for people with developmental disabilities, Cal-Grant education funds and
other critical health related services - demanding passage of the budget as
the only solution. Clearly however, the Assembly Democrats were caught in an
uncomfortable position of opposing emergency funding without appearing to
look like they did not want help people with developmental disabilities.
The next day the State Controller announced that a 1998 statute required the
state to pay for services and supports for people with developmental
disabilities for the months of July and August even if there is no budget in
place.  That action - along with previous actions by the Controller to
authorize payment for certain vendors or groups (including In Home
Supportive Service workers), took out much of the argument against temporary
emergency funding that Assembly Democrats raised, since many services and
programs were already now, in effect, being funded through emergency
provisions. The State Controller's action also created a potential
embarrassment for the Davis Administration because of mounting criticism
that his Administration cut off funding on July 1 to regional centers when
they should have been aware of the 1998 statute that required funding to
continue.  As a result of the cut off of funds, regional centers were forced
to borrow millions of dollars so they in turn could continue paying
non-profit community agencies and other vendors who provide the services and
supports for over 180,000 people with developmental disabilities.  [See
8/23/02 UCP Update for more details on the State Controller action]

As previously reported, State Controller Kathleen Connell's (D) office
confirmed late Friday afternoon (August 23) that existing state law, passed
in 1998 (AB 561 by then Assemblyman Scott), requires the State to pay claims
for services and supports needed by people with developmental disabilities
from July 1, 2002 up to September 1, 2002.  Richard Chivaro, Chief Counsel
for the State Controller said Friday evening that payments to regional
centers could be sent out as early as next week (last week of August). This
information was confirmed directly with the State Controller's office Friday
evening.

The action by the State Controller will provide temporary - but critical
relief to the state's over 180,000 people with developmental disabilities
and their families who are served by the 21 non-profit regional centers, who
were on the verge of closing their doors within weeks.  Regional centers in
turn, will now be able to pay hundreds of vendors across the state who
employ thousands of direct care workers and staff.  Those vendors, (most of
them non profits such as Easter Seals, Arc, United Cerebral Palsy), are the
agencies that directly provide the services and supports to people with
developmental disabilities in communities across the state were also on the
verge of closure or suspension of services.

WHAT DOES THIS MEAN
* Regional Centers will be paid for claims occurring during the months of
July and August. The State Controller will issue payments within days of
receiving the claims from the Department of Developmental Services
(according to the State Controller's office Friday evening, August 23).  The
State Controller, Kathleen Connell (D), will make the payments under the
1998 statute.  However - payments for claims occurring for the months of
September and beyond will require enactment of an emergency funding
appropriation, which the Assembly is now considering.
* Services and supports in the community will continue for awhile, because
regional centers will now receive payments from the Department of
Developmental Services for claims occurring in July and August.  So there is
a temporary reprieve - until late September (hopefully a budget or a
temporary emergency appropriation will be enacted by then)
* The combination of actions - including bi-partisan meetings on the budget
and serious consideration of emergency appropriation by the Assembly means
that there is significant movement toward resolving the immediate funding
crisis - though nothing is definite.  We will keep you posted.

NEXT STEPS
* ASSEMBLY - The Assembly Democrats, because they control the Assembly Floor
and the committees, will not let the measure out unless the impasse
continued - and public pressure forced them some action.  They are counting
on the resumption of the "Big 10 Committee" to break the stalemate.  It is
not known whether the Governor will be involved.  However this is the first
major indication of a possible break in the stalemate. However, the budget
impasse does continue, as the committee meets. The Assembly is scheduled to
meet in session tomorrow, Sunday afternoon at 1:00 PM.  We will be
monitoring the session closely. The situation is very fluid - and anything
can happen.
* GOVERNOR - No direct public action from the Governor on the budget
impasse. His approval of any temporary emergency appropriation would be
needed before any bill could be sent to him.
* SENATE - The Senate passed the budget on June 29 - and to date.  However,
they will have to approve any changes to the budget proposal made in the
Assembly and they would have to agree to any temporary emergency
appropriation.

WHAT YOU SHOULD DO
* ADVOCATES - STILL save the date of September 4 (Wednesday) for a possible
rally sponsored by the Association of Regional Center Agencies (ARCA) on the
South Steps of the State Capitol.  The crisis is NOT over - the 1998 statute
only permits payments to regional centers for claims occurring  between July
1 and September 1.
* LETTERS AND LOBBYING - keep letters coming - the crisis is NOT over! The
crisis is NOT over. In addition - the budget, when passed, will contain cuts
to services and supports for people with developmental disabilities - with
large reductions anticipated for next year's budget (2003-04).

NOTE:If you would like to get on the UCP Update distribution (and
conversely, get off of it) please send an email with that request to:
martyomoto@xxxxxxxxx  Thanks.

FOR MORE INFORMATION
Marty Omoto, Legislative Director
CA Coalition of United Cerebral Palsy Associations
1225 8th Street Suite 480 Sacramento, CA 95814
916/446-3204  FAX: 916/446-3206 email: martyomoto@xxxxxxxx
Coalition Chair: Michael Williams (UCP of the Golden Gate)
Immediate Past Chair: Ron Cohen (UCP LA and Ventura Counties)


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