Budget Deal Made Between Governor and Legislature – Impacts to Developmental Services

The Next Two Weeks Are Make Or Break for Developmental Services Funding in California

After months of hearings and discussions, combined with an intense final week of negotiations, Governor Newsom and legislative leadership agreed to a compromise budget late Sunday. The deal includes significant investments in health care, education, and housing, as well as investments into developmental services. Below is a summary of the budget deal as we best know it to date (additional details will be published as soon as they are confirmed):

 

Approved the May Revision General Fund amount of $100 million starting January 1 for budget year 19/20, $200 million in 20/21, plus added $25 million GF in 19/20, $50 million GF in 20/21, and $25 million GF in 21/22 to fund some type of across-the-board rate increase for regional center services (final details on the increases for different services have yet to be confirmed).

 

Adopt placeholder trailer bill language for broader rate reform.

 

14 Day Uniform Holiday Schedule is suspended until January 1, 2022.

 

Half-Day billing is not suspended and will remain enforced.

 

There is no fix to the minimum wage “quirk” (meaning that services in regions with local minimum wages higher than the state minimum wage will still no longer be eligible for increases when the state minimum wage goes up January 1).

 

Social recreation and camp will not be restored.

 

Did not approve the Assembly’s version of an additional $5 million for safety net services for dually-diagnosed consumers.

 

No additional Prop 56 funds for ICF-DDs.

 

$17.4 million General Fund in 2019-20 and $40.5 million ongoing to restore the following optional MediCal benefits: (a) audiology (b) incontinence creams/washes (c) optical (d) podiatry (e) speech therapy.

 

No SSP COLA increase.

 

Sunset on the 7% increase to IHSS remains.

Jordan Lindsey

Jordan Lindsey, Executive Director, The Arc of California