Governor’s proposed budget leaves healthcare, special needs advocates disappointed

By Susan Abram, Los Angeles Daily News
Posted: 1/7/16

Gov. Jerry Brown on Thursday handed what health care advocates and supporters of people with special needs called a status quo budget proposal for the next fiscal year, with no new investments or restoration of funding to programs that help California’s most vulnerable.

Citing a potential future recession that could deplete the Golden State’s now robust surplus, Brown’s $122.6 billion general fund spending plan for 2016-17 offers a fiscally safe proposal that was praised by some lawmakers for its cautiousness but also left those within some sectors disappointed. The budget also includes a $3.6 billion surplus.

“Given the wide disparities that exist in our state and the millions who struggle in one form or another, understandably there will be proposals to fund a variety of worthwhile programs,” Brown said in a statement to state legislators. “But it would be short-sighted in the extreme to now embark upon a host of new spending only to see massive cuts when the next recession hits.”

The recession-era cuts left a $1.1 billion hole in the state’s Department of Health and Human Services, which won’t be restored by the budget proposal, even as the Golden State has built a surplus. Those cuts continue to be present in Brown’s latest budget proposal because they go unrestored, said Anthony Wright, executive director of Health Access California.

“It continues our existing commitment to health reform, to the recent commitment to cover all children, but there are no new investments and continues to pass cuts that have not been restored,” Wright said. Because of those cuts, Medi-Cal doesn’t cover some specialty extras such as glasses or podiatry needs, he added.

Instead, Brown is counting on lawmakers to continue a special session he convened last year so that they could discuss and come to a consensus on a revised managed care organization tax to restore the $1.1 billion. The current tax structure is due to expire at the end of June. It imposed a 3.9 percent tax on revenue generated by plans that accept Medi-Cal and uses the money to help low-income patients.

The federal government was reimbursing the state, but that will no longer be the case come June. The special session will continue this month to discuss a revised MCO tax.

California Senate President pro Tem Kevin de León, D-Los Angeles, called Brown’s budget proposal a “clear-eyed focus in maintaining California’s fiscal stability.” Still, Leon expressed concern for health care and those with special needs.

“But we still have to take a closer look at strengthening our health care system for the poor and developmentally disabled that has been starved for far too long,” he said.

Republican state Sen. Jim Nielsen, R-Gerber, the vice chair of the Senate budget committee, said the governor should be applauded for proposing a prudent budget but said there was no need for new or extended taxes.

“We can continue to pay down the state’s debt, increase the state’s savings account for a rainy day fund and existing programs that help California’s most vulnerable, particularly services for people with developmental disabilities.”

Meanwhile, providers and those who advocate for people with special needs remained disappointed with the proposed budget. Services for those with cerebral palsy, Down syndrome and many others fall under the Health and Human Services department.

Advocates, parents and providers were among those who participated in protests, letter-writing campaigns and other events through all of last year to urge lawmakers to agree on an across-the-board 10 percent increase to keep up with living standards to help pay for a rising number of adults with developmental disabilities who are living independently, as well as for their transportation costs, operations of day programs and to keep up with minimum wage increases for staff, among other needs.

“We once again feel that history has repeated itself and the state of California has failed us as it has for the last decade,” according to a statement by the Los Angeles Coalition of Service Providers, a group of 18 of the largest nonprofit organizations in Southern California. “We are heartened by comments from the leaders of the California Legislature and urge them to stand firm with the governor to develop a budget that provides the funding needed to secure the future of persons with special needs and their families and to keep them out of harm’s way.”