Welfare

The Governor had proposed to eliminate CalWORKS benefits for children, but these benefits remain intact in the final budget. However, the final budget fails to provide a Cost of Living Adjustment (COLA) for the third straight year.

People receiving SSI fared a bit better than CalWORKS recipients as the final budget provides both the federal and state COLA for the first time since the 2004-05 budget. However, the timing of the payment of the State COLA has been delayed to June as a cost-saving measure.

Health

Throughout the entire budget process, the Governor did not propose cuts to Medi-Cal program benefits, eligibility, provider rates or prescription drugs for low-income populations. The final budget includes some reductions to health care costs, but overall health programs are relatively unscathed. The biggest problem during the 52-day budget delay was the state stopped paying institutional providers, causing serious concerns for low-income communities that rely on state-supported institutions like clinics, nursing homes, and adult day health centers for essential health care services. These institutions did not receive payments during the budget stalemate, forcing some to close and others to take out loans. Now that the budget is signed, the state promises to expedite payments, including back payments, to these institutions.

Housing

The budget allocates $300 million of Prop. 1C housing money for new infrastructure programs. While it was disappointing that these funds will not be used directly for affordable housing (as is the case with most of the 1C proceeds), the infrastructure must support rentals affordable to families earning 60% or less of area median income (AMI), and for-sale units for families earning less than 120% of the AMI.

While other housing programs remained untouched, the Governor vetoed $55 million for housing with comprehensive services for homeless adults with serious mental illnesses. The Administration argued that this housing could be funded under the Prop. 63 "millionaires' tax," despite the clear language in Prop. 63 that it cannot be used to supplant existing programs.

WCLP Advocates Involved in Every Step of the Process

WCLP played a lead role in budget deliberations throughout the year.

Our advocates:

• provided in-depth analysis of budget proposals
• participated in Administration work groups to develop proposals and implement existing law
• interacted with the media to insure accuracy and understanding of the impact on our clients
• negotiated budget bill language
• testified in public hearings
• arranged for client witnesses to testify at public hearings
• worked closely with legislative staff in preparation for hearings
• lobbied legislative offices on the budget
• worked closely with legal service advocates to develop policy proposals and evaluate impacts on clients
• provided public education for legal service-affiliated and other organizations