Budget Watch

In an effort to keep our stakeholders informed about the state of California budget, and how the budget will impact funding, as well as programs and services, we post news on “Budget Watch”. This page features updates from the Governor and Legislature, links to important news articles and various budget and advocacy related web sites, as well as important information about how you can get involved to make a difference. Visit this page regularly to keep current on budget issues.

CDCAN Reports on Upcoming Vote for Developmental Services Funding

State Capitol Update:

CONFERENCE COMMITTEE APPROVES BROWN ADMINISTRATION'S MANAGED CARE ORGANIZATION TAX REFORM AND DEVELOPMENTAL SERVICES FUNDING BILLS - HEADS FOR FINAL VOTE ON SENATE & ASSEMBLY FLOORS ON THURSDAY

Republican Votes Needed For Passage - No Opposition to Developmental

Services Funding Bill But Passage Is Tied To Passage of the Managed Care

Organization Tax Reform Bill - No Official Deal Announced Yet But

Legislative Democrats Are Hopeful of Getting Necessary Republican Votes on

Thursday To Approve Managed Care Organization Tax Reform Bill That Will Pave

The Way For Easy Approval of the Developmental Services Funding Bill

 

SACRAMENTO, CA [BY MARTY OMOTO, CDCAN - LAST UPDATED 02/22/2016 11:55 PM] -

As expected, in a major step in a long process, the Brown Administration's

managed care organization tax reform and developmental services funding

bills passed out of the special session conference committee late Monday

afternoon.  

    The managed care organization tax reform bill however faces its real

test with a final vote scheduled for Thursday, February 25th, on the Senate

and Assembly floors that will require some Republican votes to pass.

Democratic legislative leaders remain hopeful and optimistic of getting the

sufficient number of Republicans needed to pass the managed care

organization tax reform bill.  Passage of that bill would then open the way

for a vote and what is certain to be a very easy passage of the

developmental services funding bill, also set for Thursday.  However,

failure to pass the managed care organization tax reform bill would likely

mean the developmental services funding bill would not be taken up for a

vote.

    The 10 member special session conference committee, made up of five

members of the Assembly (2 Republicans and 3 Democrats) and five members of

the State Senate (2 Republicans and 3 Democrats), began about 22 minutes

late from its 3 PM scheduled start time and lasted about an hour.  To view

the complete video of the hearing by CalChannel click on this link from the

CalChannel webpage:

http://calchannel.granicus.com/MediaPlayer.php?view_id=7 

<http://calchannel.granicus.com/MediaPlayer.php?view_id=7&clip_id=3373>

&clip_id=3373 

    The Brown Administration's managed care organization tax reform proposal

was amended into SBx2 2 by Senator Ed Hernandaz (Democrat - Azusa) [the "x2"

stands for second extraordinary or special session] and will require 2/3rds

vote to pass on the Senate and Assembly floors because it will impose a tax,

though the tax is largely swapped out by eliminating other taxes on those

managed care organizations. The managed care organization tax reform bill

revises and extends for another three years the existing managed care

organization tax that is set to expire on June 30, 2016.  The bill passed

out of the conference committee on a strict party-line vote of 6 to 4.

    The developmental services funding proposal by the Brown Administration

was amended into ABx2 1 by Assemblymember Tony Thurmond (Democrat -

Richmond) but passage of this bill is tied to passage first on the Senate

and Assembly floors of the managed care organization tax reform bill. The

Brown Administration's proposal, which has remain largely unchanged since

last week, calls for an increase of over $300 million in on-going State

general funding for developmental services.  While the managed care

organization tax reform proposal would expire after three years from July 1,

2016 (assuming it is passed by the Legislature and approved by the federal

government), there is no expiration or sunset for the new $300 million

increase in State general funding for developmental services, according to

the Governor's Department of Finance, in response to a question by Senator

Holly Mitchell (Democrat - Los Angeles, 20th State Senate District) during

the hearing.  

    The developmental services funding bill also included a new provision,

under the Department of Health Care Services, impacting skilled nursing

facilities that are distinct parts of general acute care hospitals.  The

provision would prohibit the Department of Health Care Services from seeking

to retroactively implement certain Medi-Cal provider payment reductions and

limitations with regards to reimbursements for services provided by skilled

nursing facilities that are distinct parts of general acute care hospitals

for dates of service on or after June 1, 2011, and on or before September

30, 2013, and from seeking to recover overpayments from those facilities.

    The developmental services funding bill passed out of the special

session conference committee by a unanimous vote of 10 to 0.  However

ultimate passage of that funding bill is tied to the passage first of the

managed care organization tax reform bill.

 

SOME REPUBLICAN SUPPORT NECESSARY TO PASS MANAGED CARE ORGANIZATION TAX

REFORM BILL

    Some Republican support for the managed care organization tax reform

bill is crucial because the bill imposes a tax, even though it swaps out the

new tax by eliminating some other taxes. Under the State Constitution,

passage requires 2/3rds vote in both the State Senate (27 votes of 40

members) and the Assembly (54 votes of 80 members).

    Democrats currently control 26 seats in the State Senate, meaning they

would need at least one Republican senator to vote for the managed care

organization funding reform, assuming all Democrats vote for it.  In the

Assembly, Democrats control 51 seats with Republicans holding 28 with one

vacancy.  Assuming all Assembly Democrats vote for the managed care

organization funding or tax reform, at least 3 Assembly Republican votes

would be needed to pass it.

    One major stumbling block toward passage was overcome two weeks ago with

the support of the health plans association for the revised managed care

organization tax reform.  A second hurdle was overcome last week with

agreement reached with the Brown Administration, and disability advocates on

the amount and specifics of new developmental services State general funding

tied to the passage of the revised managed care organization tax reform. 

    Democrats in both houses are hopeful of overcoming the third and final

hurdle of securing enough Republican votes in both the State Senate and

Assembly, though there still is no formal announcement yet (as of late

Monday evening) on a deal to pass the managed care organization tax reform

bill.  As of last week, key business groups, including the Howard Jarvis

Taxpayers Association, the National Federation of Independent Business, and

the California Chamber of Commerce, withdrew their opposition against the

Brown Administration's managed care organization tax reform, giving a major

boost to the prospects of getting some Republicans to support the bill.

    Both parties strongly support the developmental services funding bill,

but passage of that bill is tied to the passage of the managed care

organization tax reform bill.  

    However none of the four Republicans on the 10 member special session

conference committee voted for the managed care organization tax reform bill

and Senate Republican Leader Jean Fuller (Republican - Bakersfield, 16th

State Senate District) released a statement after that vote saying she still

believed that ".we can invest in California's priorities without this health

care revenue plan."  

    As of late Monday evening there is still no formal announcement of an

agreement from Republicans in both houses to provide the necessary votes to

pass the managed care organization tax reform bill - key to the approval of

the developmental services funding bill. 

    Still, there was evidence in recent days of progress in getting the

votes of at least one Republican vote in the State Senate and at least three

in the Assembly for the managed care organization tax reform bill. However

nothing is certain until the final floor vote on the bill is taken.  CDCAN

will release a full report on the Assembly and State Senate floor action on

the two bills on Thursday.

 

 SENATE PRESIDENT DE LEON RELEASES STATEMENT 

    Senate President Pro Tem Kevin De Leon (Democrat - Los Angeles, 24th

State Senate District), in a statement released following the special

session conference committee action:

    "I want to thank Senator Hernandez, Assemblymember Bonta, and the

Administration's Director of the California Department of Health Care

Services Jennifer Kent and Chief Deputy Director of Health Care Programs &

State Medicaid Director Mari Cantwell for their hard work negotiating the

Managed Care Organization Tax reform. We're starting the budget season off

with a great bi-partisan MCO [managed care organization] reform package that

enables us to take in nearly $8 billion federal dollars [over three years]

for critical health services and fund a long-overdue increase to

Developmental Disabilities Services rates to better serve one of our most

vulnerable populations."

 

SENATE REPUBLICAN LEADER FULLER'S STATEMENT

    Senate Republican Leader Jean Fuller (Republican - Bakersfield, 16th

State Senate District) released a statement following the special session

conference committee action:

    "We should all be encouraged with how far this proposal has come since

last year, including restoring funding services for the most vulnerable in

our society. I still believe we can invest in California's priorities

without this health care revenue plan."

 

LINKS TO COPIES OF THE TWO BILLS

SBx2 2 - MEDI-CAL: MANAGED CARE ORGANIZATION TAX

AUTHOR: Senator Ed Hernandez (Democrat - Azusa) and Assemblymember Rob Bonta

(Democrat - Alameda)

COPY (PDF DOCUMENT) OF SBx2 2 AS AMENDED WITH 02/22/2016 CONFERENCE

COMMMITTEE REPORT (17 PAGES):

http://www.leginfo.ca.gov/pub/15-16/bill/sen/sb_0001-0050/sbx2_2_bill_201602 

22_proposed.pdf 

COPY (HTML VERSION) OF SBx2 2 AS AMENDED WITH 02/22/2016 CONFERENCE

COMMITTEE REPORT:

http://www.leginfo.ca.gov/pub/15-16/bill/sen/sb_0001-0050/sbx2_2_bill_201602 

22_proposed.htm

LATEST ACTION 02/22/2016: From Special Session Conference Committee: Be

adopted. 

NEXT STEPS: Heads to Assembly and State Senate Floors for final vote.

CDCAN VOTE RECORD:

VOTING YES - 6

    DEMOCRATS (6): Assemblymembers Bonta, Bonilla, Santiago and Senators

Hernandez, Leno and Mitchell 

    REPUBLICANS (0): 

VOTING NO - 4

    DEMOCRATS (0): ***None***

    REPUBLICANS (4): Assemblymembers Gallagher, Patterson and Senators

Anderson and Nielsen

VOTING NO - 4

 

 ABx2 1 - MEDI-CAL: DEVELOPMENTAL SERVICES: FUNDING

 

AUTHOR: Assemblymember Tony Thurmond (Democrat - Richmond) and Senator Jim

Beall (Democrat - San Jose)

 

COPY (PDF DOCUMENT) OF ABx2 1 AS AMENDED WITH 02/22/2016 CONFERENCE

COMMITTEE REPORT (27 PAGES): 

 

http://www.leginfo.ca.gov/pub/15-16/bill/asm/ab_0001-0050/abx2_1_bill_201602 

22_proposed.pdf

 

COPY (HTML VERSION) OF ABx2 1 AS AMENDED WITH 02/22/2016 CONFERENCE

COMMITTEE REPORT:

http://www.leginfo.ca.gov/pub/15-16/bill/asm/ab_0001-0050/abx2_1_bill_201602 

22_proposed.htm

LATEST ACTION 02/22/2016: From Special Session Conference Committee: Be

adopted. 

NEXT STEPS: Heads to Assembly and State Senate Floors for final vote.

CDCAN VOTE RECORD:

VOTING YES - 10

    DEMOCRATS (6): Assemblymembers Bonta, Bonilla, Santiago and Senators

Hernandez, Leno and Mitchell 

    REPUBLICANS (4): Assemblymembers Gallagher, Patterson and Senators

Anderson and Nielsen

VOTING NO - 0

 

 

BROWN ADMINISTRATION'S NEW DEVELOPMENTAL SERVICES FUNDING 

    The Brown Administration's proposal in ABx2 1 calls for about $300

million in new State general funding for developmental services - about $418

million total funds when federal matching funds are added in. Senate

President Pro Tem De Leon's press release on the conference committee action

today (February 22) estimates the federal matching funds at a significantly

higher level, projecting that the $300 million in new State general funding

will be matched by about $200 million in federal matching funds for a total

of about $500 million in new funding (State and federal dollars).  It is not

clear yet if that higher total funds number reflects a change in the

estimate issued last week by the Department of Developmental Services.  

    The new funding, if the managed care organization tax reform bill and

developmental services funding bills are passed, would be effective July 1,

2016 (the rate increases for Intermediate Care Facilities/DD would be

effective one month later on August 1, 2016). 

    The Brown Administration proposed funding tied to the managed care

organization tax reform bill is on top of proposed funding increases to

developmental services, including new funding for annual caseload growth,

that the Governor proposed as part of his 2016-2017 State Budget in January.

    As reported earlier by CDCAN (a more detailed report on the specifics of

the proposal will be issued later today by CDCAN), the Brown Administration

proposal includes significant new targeted funding for a developmental

services direct care worker wage pass through for all providers and regional

centers - the first time such a specific wage pass through, other than a

limited one in 2006, has ever been done; some additional targeted funding to

cover about 2.5% administrative costs for all regional center funded

providers and regional centers; 5% rate increases for certain programs

(supported living, independent living, in-home and out of home respite,

transportation, intermediate care facilities/DD); restoration of supported

employment program rates to what it was in 2006 (before the rate reductions

to that program); and significant funding for a new competitive integrated

employment program that provides payments for internships in integrated

employment settings and also incentive payments in placing people with

developmental disabilities in those settings who remain in those settings

after a certain period of time; and new funding for regional center

bilingual staff, cultural competency training, and parent education efforts.

    The funding proposal also calls for specific outcomes and reporting, and

including placing in California law a requirement for a rate study by the

California Health and Human Services Agency Developmental Services Task

Force that includes the issue of rates or reimbursements linked to unmet

needs and cultural disparities.  

    The Brown Administration's funding proposal tied to the passage of the

managed care organization tax reform bill is on top of new significant

funding for developmental services the Governor proposed as part of his

2016-2017 State Budget in January. Those proposals made in January will go

through the normal legislative budget subcommittee hearing process that

begins early next month through May.

    Disability advocacy groups including the Association of Regional Center

Agencies, CDCAN, the California Person Centered Advocacy Partnership,

Disability Rights California and the Lanterman Coalition, and others, all

expressed and filed strong support for the Brown Administration proposal and

passage of the managed care organization tax reform that is linked to the

proposal.  

 

CDCAN - MARTY OMOTO YOUTUBE CHANNEL

    A CDCAN (Marty Omoto, family member and advocate) youtube channel was

set up and has several videos dealing with current - and previous state

budget issues, disability and senior rights, and advocacy. 

 

    To see the current videos, including March 2014 San Andreas Regional

Center Aptos Legislative Breakfast, January 2014 panel discussion on

services for adults with autism spectrum and related disorders in Palo Alto,

and older videos including video of April 2003 march of over 3,000 people

with developmental disabilities, families, providers, regional centers and

others from the Sacramento Convention Center to the State Capitol (to attend

and testify at budget hearing on proposed massive permanent cuts to regional

center funded services, go to the CDCAN (Marty Omoto) Channel at:

<https://www.youtube.com/channel/UCEySEyhnr9LQRiCe-F7ELhg>

https://www.youtube.com/channel/UCEySEyhnr9LQRiCe-F7ELhg 

    More videos - including new current videos (an interview with longtime

advocate Maggie Dee Dowling is planned, among others) - plus archive videos

of past events - will be posted soon.  

 

 

ALERT: PLEASE HELP!!!!!!

FEBRUARY 22, 2016 - MONDAY LATE EVENING

PLEASE HELP CDCAN CONTINUE ITS WORK       

CDCAN Townhall Telemeetings, CDCAN Reports and Alerts and other activities

cannot continue without YOUR help. To continue the CDCAN website and the

CDCAN Reports and Alerts sent out and read by over 65,000 people and

organizations, policy makers and media across the State, and to continue and

resume CDCAN Townhall Telemeetings, trainings and other events, please send

your contribution/donation (please make check payable to "CDCAN" or

"California Disability Community Action Network" and mail to:     

                                                

 
CDCAN - NEW MAILING ADDRESS:
 
1500 West El Camino Avenue Suite 499
 
Sacramento, CA 95833  
 
[replaces 1225 8th Street Suite 480, Sacramento, CA 95814]

Office Line: 916-418-4745  CDCAN Cell Phone: 916-757-9549 (replaced

916-212-0237)

 

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