Final State Budget Agreement Includes Six Month Delay in New Funding for Regional Center Services

By Jordan Lindsey, Executive Director, The Arc & UCP California Collaboration

This year’s state budget was finalized within the context of a $46.8 billion deficit. Since Governor Gavin Newsom released his initial proposed budget in January – which included a 12-month delay in $1 billion of new funding for regional center services – the legislature has held dozens of budget committee hearings to develop a plan that addresses the deficit.

Thousands of advocates from across the state took action in response to the Governor’s proposed $1 billion delay in funding for services supporting people with developmental disabilities and their families. Nearly 20,000 Californians spoke out against delaying the full implementation of the regional center rate models, and sent more than 120,000 emails, tweets, and petition messages to Governor Newsom and legislators to invest the full amount on July 1, 2024, as promised in previous budgets. As a result of this effort, the final budget agreement successfully pushed back against the Governor’s proposal of a 12-month delay and instead shortened it to a six-month delay. This six-month delay, however, will continue to exasperate the monumental staffing shortage and strain a system of supports and services that is already unable to provide adequate access to essential services, leaving thousands across the state without support.

The Arc of California’s detailed summary of California’s enacted 2023-24 budget and its impact on people with intellectual and developmental disabilities (IDD) and their families is below:

Regional Center Services: A six-month delay in rate increases for developmental services, in lieu of the one-year delay proposed in the May Revision. The remaining 50% implementation of the rate model increases will now occur January 1, 2025.

In-Home Supportive Services (IHSS): Rejects proposed cut to IHSS regardless of immigration status and IHSS Backup Provider system.

Supplemental Security Income/State Supplemental Payment (SSI/SSP) base grants: Maintains a 3.2-percent federal SSI cost-of-living adjustment and maintains the 9.2-percent SSP increase, which took effect on January 1, 2024. These adjustments raise the maximum SSI/SSP grant levels to $1,183 per month for individuals and $2,023 per month for couples.

Adult Protective Services: Rejects proposed cuts to Adult Protective Services expansion and training.

Specialty Dental Clinics: Restores $50 million in infrastructure grants to dental clinics to improve access to dental care for children with special health care needs.

Health Care Workers Wage Increases Implementation: Implements health care minimum wage law subject to two potential triggers. The first trigger is related to the Administration submitting a new federal waiver for an additional Quality Assurance Fee, which will generate billions for hospitals. The second being weather revenues out-perform projections by more than three percent. Under this action, it is expected that SB 525 will be implemented as early as October, but no later than January 1, 2025.

Record a Video Message to Share with Governor Newsom Rejecting His Proposed $1 Billion in Budget Cuts

The clock is ticking! Legislators and the Governor are negotiating the final 2024-25 State Budget in the next several days. The Governor has proposed a $1 billion delay/cut to funding vital disability services that will have devastating consequences for Californians with developmental disabilities and their families, and worsen the existing staffing crisis of direct support professional. It is one of the LARGEST delays/cuts to funding in the Governor’s budget, and it sends a message that the disability community is not a priority.

Please take 5 mins of your day to record a short video letting the Governor and legislators know that any delays in funding will be detrimental to the quality of life for people with disabilities and their access to a lifeline of services. Tell them: “Do NOT delay or cut critically-needed funding for disability services from this year’s budget. It’s unacceptable and it can’t wait!”

Record your video message at mystory.thelantermancoalition.org

Your videos will be shared with the Governor and elected officials by email and social media channels.

DON’T FORGET TO SPREAD THE WORD!

Thousand to Protest the Governor’s Proposed Budget Cuts on May 31 at Rallies Across the State

Disability community leaders are calling for participation at rallies in Los Angeles, West Covina, Orange County, and San Diego on Friday, May 31, 2024 to reject the Governor’s proposal to delay/cut $1 billion in funding for the development disability services system. With an ever-increasing shortage of direct care staff, this delay threatens to destabilize the support system that people with developmental disabilities rely on to live safely and successfully in their communities.

In 2024-2025, more than 465,000 Californians with developmental disabilities will rely on state services – an increase of more than 35,000 individuals served. The Department of Developmental Services contracts with 21 Regional Centers throughout the state to coordinate services and provide the support that people with disabilities and their families need to thrive. Due to years of chronic underfunding, the system is failing. The direct support workforce is leaving the field due to low wages, essential programs are closing throughout the state, and individuals are struggling with inadequate supports or going without supports altogether.

This is one of the largest proposed delays or cuts in the Governor’s 2024-25 state budget.

Please try to join one of the following rallies planned on Friday, May 31 at 10:00 a.m.:

We encourage everyone in the disability community to attend, including individuals with disabilities, families, friends, direct support professionals, regional center and service provider staff, and all disability rights advocates.

LA Times Articles Highlights Impact of Governor’s Proposed Funding Cuts to Disability Services

Last week, the Los Angeles Times Staff Writer Karen Garcia published an important investigative article showing how Governor Newsom’s proposed $1 billion funding cuts to disability services will impact individuals with developmental disabilities, their families and the workforce.

The Department of Developmental Services pays private contractors (service providers) to provide residential and day programs, including work and training activities, on a per-person basis using a combination of state and federal funds. But lawmakers recognized in the mid-2010s that the rates — which have been frozen or cut during previous state budget crises — did not support an adequate supply of providers to meet the need for services, according to the Legislative Analyst’s Office.

Garcia interviewed Jordan Lindsey, Executive Director, The Arc of California for the story.

“When a family goes to a referred provider, they’re often met with waiting lists of many months,” said Lindsey. “Or, they’re turned away entirely because the provider doesn’t have enough staff to support the varying needs of new clients.”

Staffing levels are low across the state because wages start between $16 and $20 an hour for a difficult, complex job, he added.

Click HERE to download the full article, or use the following link to view online: https://www.latimes.com/california/story/2024-04-17/california-budget-cuts-would-harm-autistic-young-adults

We encourage you to share with your networks, and/or write a letter to the editor to provide comments, and urging the Legislature to reject Governor Newsom’s proposal to delay/cut $1 billion in funding for disability services.

If you haven’t already done so, you can click HERE to email the Governor and your elected officials using our Action Alert online. It only takes two minutes.

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California Faces $68 Billon Dollar Deficit, while Californians with Developmental Disabilities and their Families Struggle

California’s budget deficit could hit a record $68 billion in the 2024-25 fiscal year, according to a report released last week from the non-partisan Legislative Analyst Office (LAO). The projected deficit is a result of a steep decline in tax revenue and comes after two years of record surpluses due to federal COVID-19 relief funding and large gains by California’s wealthiest.

As mentioned in the report, a major cause of the downturn is that the number of unemployed workers in California has risen nearly 200,000 since the summer of 2022. This has resulted in a jump in the state’s unemployment rate from 3.8 percent to 4.8 percent. This rise in unemployment has acutely impacted Californians with developmental disabilities and their families, who continue to struggle to find supports and services due to the lack of staff at service providers and regional centers. These state funded programs can only hire if the state provides adequate funding to do so, and an increase in reimbursement rates scheduled for July 2024 will help to employ more direct support staff – yet it will still require more rate increases to be truly competitive.

If the deficit projections are actualized, then the Legislature and Governor will have to use funds in the state’s rainy-day account, currently at $24 billion, and look at other options to balance the budget and jumpstart the economy. More employed Californians will be a key to turning around the state’s budget woes, and with investment into our developmental services system, service providers and regional centers will be ready to hire in a competitive employment market.