Governor’s Proposed

Budget Poses Risk for Programs Important to People with Disabilities

For the third time in three years, the Governor’s Proposed Budget includes possible cuts to the system of services and supports for people with developmental disabilities. The first two versions came from Governor Davis. This time, the proposal comes from Governor Schwarzenegger. But the elements of the proposal are hardly different, and are certainly no more palatable in 2004 than they were before.

With the release of the budget in January, the annual multi-month marathon of crafting a spending plan begins. It is a start, not the end, but we aren’t thrilled with the start.

For the Department of Developmental Services – the agency that oversees regional center operations and Purchase of Services budgets, the Governor is proposing serious spending reductions. The budget summary states that "California cannot sustain future growth costs . . . "of 244% over the last ten years compared with a caseload growth of 70%". To address what the Administration sees as out-of-control growth, the proposal includes the following reductions:

· A $100 million cut to services, to be implemented through standardized (instead of individualized) service choices. A hallmark of California’s landmark Lanterman Act is that people with developmental disabilities are entitled to that mix of services that specifically address an individual’s needs and enable them to achieve their goals. Standardized services would be a serious departure and could mean signifi- cant losses to individual consumers.

· A parental co-pay provision for consumers ages 4-17 "from those who can afford to pay".

· A requirement that services be provided in the least costly manner possible.

· Unallocated Reductions of $6.5 million (that’s less than 2%) from regional center administration. The statement makes the following interesting observa- tions about this item:

For the developmental centers (DCs), California’s seven remaining state-owned and operated institutions "the Administration will revisit the issue of developmental center closure . . . Individuals can experience a better quality of life at lower costs in more fully integrated and less restrictive community-based settings". Although it cannot happen immediately, the Administration is committed to enhancing the existing system of community-based services to a level where hopefully large State-run institutions are no longer necessary and as many individuals as appropriate can live in their communities. These institutions currently house 1.8% of California’s 190,000 people with developmental disabilities yet consume fully 23% of the budget.

While the overview offers no specific dollar amounts, the statement indicates increased contracting for non-direct care services such as food service in the DC’s will be included in the details.

For consumers who hold jobs through supported employment and work activity programs, there are also significant issues. The most important to consumers and families might be the proposal to increase the size of work groups of people within group supported employment. One of the many benefits of supported employment is the ability of consumers to hold jobs, earn income and interact directly and daily with people without disabilities. By forcing larger work groups, the State would reduce employment opportunities in small businesses that cannot hire larger groups of consumers. Further, the State would be discouraging integration – a strong goal of California’s Lanterman Act, the federal Americans with Disabilities Act, and a requirement from the recent US Supreme Court decision known as Olmstead.

This proposed budget is the first step in a multi-month process and we have time to evaluate and react to these proposals before the Legislature holds its first hearings, expected in mid-April.

If you have questions about these proposals, please contact Dwight Hansen at (916) 441-5844 or my e-mail at dhansen@calrehab.org.