CIPC BUDGET ACTION ALERT

July 23rd, 2008



Legislative Conference Committee Reaches Budget Compromise Agreement

Proposes $9.7 billion in New Revenues; Rejects Deeper Cuts



Call your Legislators Today, Urge them to Support a Balanced Approach to Solving the State's Fiscal Crisis!

On July 8th, the Budget Conference Committee approved a compromise budget plan that relies on additional cuts and increased revenues to balance the state's budget. The final compromise, although far from perfect, takes a more balanced approach to solving the budget than the Governor's proposal, by including $9.7 billion in new revenue that will not cause more harm to California's most vulnerable populations. The proposed budget significantly reduces programs that serve low-income immigrant children, seniors, and disabled. However, the compromise does not contain many of the harshest proposals put forth by the Governor, such as the severe restrictions in Medi-Cal services for immigrants or the proposal to eliminate the Cash Assistance Program for Immigrants (CAPI). CAPI provides cash aid for immigrant seniors and immigrants with disabilities to pay for the most basic necessities, such as rent, clothing, medicine and food.

The Governor, Assembly and Senate leaders from both parties must reach a final budget agreement by August 1st or risk that the state will have no funds to spend. At issue is how the state plans to raise revenues in order to avoid further cuts to critical programs and services in California. Democrats and Republicans have yet to agree on any plan to raise revenues. If the Governor and legislative leaders cannot agree on a long-term, stable revenue plan, many of the previously rejected cuts, including those to immigrant programs, could be back on the table.

Please call your legislators today. Let them know that you support the conference committee's proposals to raise $9.7 billion in new revenue to help close the budget gap and prevent deeper cuts to the state budget. See below for a call-in number and sample script.

For a more detailed comparison of the Budget Compromise Agreement and the Governor's Revised Budget Proposal visit the California Budget Project website at: www.cbp.org

Additional Actions in Compromise Budget Agreement

The Budget Conference Committee agreed to additional cuts in the area of children's health including:

· Increased reporting requirements for children enrolled in Medi-Cal. As of September 1st, 2008, families would be required to turn in status reports every six months rather than once a year in order for their children to remain enrolled in the Medi-Cal program. Children with disabilities, pregnant teens and other groups will be exempt from this change. It is estimated that more than 250,000 children will lose their health coverage by 2011 as a result.[1]



· Increased monthly premiums for families earning between 151-250 percent of the federal poverty line in the Healthy Families program (HFP). Families will be required to pay $2 to $3 more per child per month in order to stay enrolled in the program. The measure could result in the loss of health coverage for approximately 20-30,000 children.[2] However the conference committee rejected new increases in co-payments.

The Budget Conference Committee also agreed to the following key budget restoration(s):

Rejected cuts to the federal safety net pool which supports the state's public hospitals, cuts to rural health clinics, and provider cuts to programs such as California Children's Services (CCS) and Child Health and Disability Prevention (CHDP).


Partially restored the previously approved 10% cut in Medi-Cal provider rates that went into effect July 1, 2008. Under the Budget Compromise Agreement, Medi-Cal providers will experience a smaller cut (rather than the previously approved 10% rate cut). New rates would take affect September 1st, 2008; reimbursements would be made between July 1st - Sept. 1st at the reduced rate.
The budget compromise agreement includes prior actions already approved or rejected by the Assembly and Senate Budget Committees including the following:

· Approved the suspension of the CalWORKs cost of living adjustment (COLA) for 2008-09.



· Approved the suspension of the state portion of the October 2008 Cost of Living Adjustment (COLA) for Supplemental Security Income (SSI) recipients and the June 2009 state-funded COLA.



· Approved a 10% cut to the Naturalization Services Program (NSP) for assistance in filing the paperwork necessary to become a U.S. citizen.



· Rejected the governor's proposal to impose a $1,000 dental cap in the Healthy Families Program. However, the budget committees imposed a $1,500 maximum for dental services.



· Rejected the governor's proposal to eliminate the Cash Assistance Program for Immigrants (CAPI), which provides cash aid for immigrant seniors and immigrants with disabilities to pay for the most basic necessities, such as rent, clothing, medicines and food.



· Rejected the denial of full-scope Medi-Cal to certain lawfully residing immigrants who would have received only restricted scope Medi-Cal.



· Rejected a new requirement for immigrants to apply for emergency Medi-Cal each month.



· Rejected complete cuts for payments of the Medicare Part B premiums for low-income seniors and persons with disabilities. The budget committee restored payment of the Part B premiums to the lowest income group, but individuals with Medicare and Medi-Cal Share of Cost more than $500 will now have to pay their Part B premiums (about $100/month).



· Rejected cuts to the AIDS Drug Assistance Program (ADAP), which is available to individuals with HIV or AIDS earning under 400% of the federal poverty level, as well as the breast cancer screening program, Every Woman Counts.



· Rejected a 10% cut in food stamp grant levels for recipients of the California Food Assistance Program (CFAP).

Revenue Proposals included in Budget Compromise Proposal

The Budget Compromise proposal includes $9.7 billion in revenue through proposals that would:

· Close tax loopholes for large corporations by suspending for three years the option to carry forward net operating losses and use as a deduction in future years ($1.1 billion). Also rolls back the 1997 tax cut given to corporations in flush times ($470 million).



· Restore the upper-income tax brackets to similar levels set by Governor Wilson in the 1990s, impacting households earning above $321,000 ($5.6 billion). A dependent credit for households over $150,000 would also be rolled back ($215 million) and an adjustment to tax tables will be suspended, meaning families over $97,000 would pay about $180 more yearly ($815 million).



· Step up tax enforcement modeled after successful tax amnesty programs in the past, this proposal collects taxes/monies owed to the state (1.5 billion).[3]






CALL YOUR LEGISLATORS TODAY!!!

Please call your legislators today. Let them know that you support the conference committee's proposals to raise $9.7 billion in new revenue to help close the budget gap and prevent deeper cuts to the state budget:

Call the "Cuts Hurt" Hotline sponsored by the California Healthcare Partnership TODAY!

1-800-960-7682



Time is running out - if you care about cuts to schools, public safety, hospitals and our health care system, please take a moment to call your legislator on Wednesday, July 23rd to let them know what cuts mean to you!



By calling 1-800-960-7682, the toll-free "Cuts Hurt" Hotline will connect you directly to your legislator, so you can tell them why taking a fair and balanced approach to the state budget is so important to YOU.



The budget is already late, and we need our legislators to take action NOW in order to protect our state's future!



Tell them: "My name is _________________________ and I live in (your town).

I'm calling to let you know that I support the conference committee's common-sense revenue measures. And I hope you will work to stop all of the harmful cuts to Medi-Cal and public services for children, families, seniors and disabled people."



California's future is just too important not to pick up the phone and call. It's time to make YOUR voice heard!

For more information on the budget contact Cary Sanders at: (510) 663-8282 ext. 303







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[1] "Conference Committee Version of State Budget Would Push Nearly 300,000 children off of Health Coverage," July 2008 fact sheet, 100% Campaign, http://www.100percentcampaign.org/assets/pdf/fs-080715.pdf

[2] Ibid

[3] "Conference Committee Completes Balanced Budget: Reconciled Spending Plan Includes Revenue Plan, Solves Outyear Deficit," Senator Perata, Assemblymember Bass joint press release, July 9, 2008. http://dist09.casen.govoffice.com/index.asp?Type=B_PR&SEC={D27AA7A3-C83D-49B9-969F-81F2B831EE24}&DE={20C1F56C-041F-430B-8941-9123421A8376}





A STATE WIDE PARTNERSHIP OF: APALC (Asian Pacific American Legal Center, CHIRLA (Coalition for Humane Immigrant Rights of Los Angeles,
NILC (National Immigration Law Center, SIREN (Services, Immigrant Rights, and Education Network)