Governor’s 2011-12 Budget Proposal Makes Deep Cuts, Incl. $750 Million to Developmental Services

With deep cuts being proposed to the developmental services system and many of the other systems that support children and adults with developmental disabilities, Lanterman wants to ensure that our community is informed with the facts so they can make educated choices and decisions. As the budget situation develops Lanterman will continue to keep our community informed. Following are links to important budget-related news and Web sites, as well as a summary of proposed 2011-12 budget changes, and current fiscal year reductions and changes that will continue in the 2011-12 fiscal year beginning July 1, 2011. For more information, you can also check out out “Budget Watch” page on the Lanterman Web site.

Important Web sites

Governor Brown’s website has posted a press release regarding his Budget proposal: http://gov.ca.gov/news.php?id=16872

The Department of Developmental Services has posted a summary of the Budget for developmental services on their Web site at: www.dds.ca.gov/Budget/Home.cfm
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The budget, in full, has been posted online at: www.ebudget.ca.gov

Summary of Proposed Changes to Developmental Services in Governor’s 2011-12 Budget

• Continue temporary regional center and service provider payment reductions of 4.25 percent.
• Continue Proposition 10 funding of $50 million for birth to 5 services.
• Increase accountability and transparency – “set parameters on use of state funds for administrative expenditures of regional centers and service providers, increase auditing requirements, increase disclosure requirements, and maximize recoveries from responsible parties.”
• Increase federal funds – by “expanding the pending 1915(i) State Plan amendment to include additional [clients] and related expenditures consistent with federal health care reform, maximizing ‘Money Follows the Person’ funding for individuals placed out of institutions, and pursuing other enhanced federal funding opportunities.”
• Implement statewide service standards – “set parameters and promote consistence in the array of services available through the regional centers….DDS will consider eligibility for the service, duration , frequency and efficacy of the service, qualification of service providers, service rates, and parental and [client] responsibilities.”

Legislative Analyst’s Office Budget Overview for Developmental Services: “Major Reductions in Regional Center (RC) Programs.”

The governor’s budget plan proposes to achieve $750 million in General Fund savings in DDS. About $125 million of the savings will come from alternative funding sources, such as the continuation of $50 million in funding from Proposition 10 and three separate proposals to draw down a combined total of $75 million in federal funds. Another $92 million in savings would come from the continuation of a 4.25 percent reduction to RC operations and provider payments. The remaining $533 million in savings would be achieved by a proposal described as increasing the accountability and transparency for the use of state funds for the administrative expenditures of RCs and service providers and through the implementation of statewide service standards. The statewide standards would set guidelines to promote consistency in the array of services provided by RCs and would be developed with input from stakeholders.”

2010-11 Budget Act

Regional Centers and our service providers have received a total payment reduction of 4.25 percent, effective July 1, 2010 to June 30, 2011. (This is an additional 1.25 percent reduction to the 3 percent payment reduction instituted in February 2009, and takes precedence over the 3.65 percent amount that had been approved in August by the Budget Conference Committee). The Department of Developmental Services has provided specific instructions to the regional centers for implementing the payment reductions to service providers.

Other changes included in the Budget Act include:

• The Welfare and Institutions Code has been changed to allow planned closure of Lanterman Developmental Center to proceed.
• In Home Supportive Services will have a 3.6 percent reduction to service hours for IHSS recipients – “commencing 90 days after the enactment (10/08/10) of the bill through the 2011-12 fiscal year, after which the recipient’s authorized service hours would be restored as specified.”
• $133 million in funding of “AB3632” funding of mental health services for children in special education has been eliminated, effectively suspending that program.

Budget Act requirements made in the 2009-10 fiscal year that are carrying over into the current budget include changes to the Uniform Holiday schedule, respite services, transportation services, and Early Start eligibility and services; suspension of funding for services such as camp and social recreation services; prohibition of funding for services considered experimental in nature; prohibition of funding for services provided by public agencies such as Medi-Cal, IHSS, public schools, CCS, etc.