california children in the 2013-14 state budget
DESCRIPTION
Presentation exploring how Governor Brown's 2013-14 state budget proposal will affect California children, including an analysis of K-12 education, higher education, CalWORKs, health care, and other social services.TRANSCRIPT
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CALIFORNIA CHILDREN AND THE STATE BUDGET
January 2013Michele [email protected] AssociateChildren’s Defense Fund – California
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Children’s Defense Fund
A non-profit child advocacy organization that has worked relentlessly for nearly 40 years to ensure a level playing field for all children.
www.cdfca.org
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Deep Cuts to Children’s Programs Over Past 5 Years
K-12 education: $7 billion
CalWORKs: $4 billion
Medi-Cal: $3.6 billion
Child care: $1 billion
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Governor’s 2013-14 Budget Proposal
Balanced budget – revenues and expenditures are roughly in balance
Proposes to increase General Fund spending by 5% to $97.7 billion
Increases for education,baseline for everything else
Focus on fiscal restraint Pays down $4.2 in budget-
related debt Creates a $1 billion reserve
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K-12 Education
Proposes a Prop. 98 increase of $2.1 billion (4%)
Pays back $1.8 billion in deferred payments to schools
Proposes $450 million for school energy efficiency projects
Provides $1.6 billion for school districts to create a new K-12 funding formula
Increases K-12 mandate block grant by $100 million to fund Graduation Requirements and Behavioral Intervention Plan programs
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Local Control Funding Formula
Similar to the weighted student formula proposed last year to change how schools are funded
Would eliminate the majority of categorical programs and establish a new streamlined funding formula
Formula would provide more money to districts with high proportions of low-income students or English learners
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Community Colleges
Provides a base increase of $197 million Pays back $179 million in deferred
payments to community colleges Makes policy change to fund based on
student course completion $300 million for
restructured adult education program
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Higher Education
Proposes a multiyear higher ed budget plan to increase GF spending by 4-5% per year over the next 4 years - $250 million increase this year
UC and CSU systems are expected to maintain current tuition and fee levels
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California Work Opportunity and Responsibility to Kids (CalWORKs)
CalWORKs provides cash assistance and services to low-income families, 1.1 million children
No new proposed cuts in 2013-14 budget Maintains cuts made in previous years
Reducing time limit for parents to receive benefits from 60 months to 24 months
Lowering grants by 12% Cutting child care and work assistance funding
Proposed increase of $143 million to support counties’ CalWORKs employment services
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Child Care
Child care has been cut significantly since 2008, $1 billion dollars in cuts, eliminating
110,000 slots Reductions to child care provider payments Lower income eligibility for parents
Budget proposal maintains current level of funding, but fails to restore past cuts
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Medi-Cal Expansion
Currently, Medi-Cal provides health coverage for the lowest-income Californians, including nearly 4.5 million children
Budget commits to expand Medi-Cal as part of federal health reform
Expansion would provide coverage to adults up to 138% FPL, paid for almost entirely by federal gov
Proposes two options for the expansion Previously, counties provided care for uninsured –
budget assumes state will capture county savings, such as by shifting child care to the counties
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1.4 million Californians will be newly eligible for Medi-Cal
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Other Medi-Cal Changes
Extends two “provider fees” that draw down federal dollars for a GF savings of $527 million Funds have traditionally supported children’s
health, but budget puts toward the reserve Implements a retroactive cut of up to 10% to
payments to doctors passed in 2011 but slowed up in court – $488 million in GF savings
$350 million placeholder for anticipated increased enrollment in Medi-Cal due to improvements with health care reform
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Dept. of Developmental Services
Extends the Annual Family Program Fee, which assesses a fee of $150-$200 to families about 400% FPL - $7.2 million in GF savings
Increase of $40 million GF to backfill one-time support from First 5 for children’s services
Sunsets a 1.25% reduction to regional centers and provider payments
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In-Home Supportive Services (IHSS)
IHSS helps low-income seniors and people with disabilities, including children, live safely in their own homes, preventing costly out-of-home care
Many recent cuts to IHSS have not been implemented because of court action
Implements a 20% reduction in hours that has been challenged in court to save $113 million
Makes additional adjustments – net increase of $168 million
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What’s Next: Finding the Right Balance
Legislators may push back against the Governor in search of the right balance of fiscal restraint and restoration of severe cuts to critical programs
Revenues???
Restoration of Cuts
Pay Down Debt,
Build Reserve
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Thanks to…
California Budget Project www.cbp.org Western Center on Law and Poverty
www.wclp.org Legislative Analyst’s Office
www.lao.ca.gov