CPEHN: Budget Negotiations Stall, Further Cuts Loom Unless Impasse is Broken

Budget Negotiations Stall, Further Cuts Loom Unless Impasse is Broken

After months of intense negotiations, Governor Jerry Brown announced a breakdown in talks with GOP leaders, dashing hopes that a package of revenue solutions would make it on the June ballot. Legislative leaders expedited the budget process, agreeing to over $12 billion in cuts, in order to meet the March deadline for a ballot initiative. However, talks broke down as Republicans introduced 53 new demands that included a spending cap, an exemption to comply with the California Environmental Quality Act, and pension reform.

The budget that has been signed by the Governor includes the following cuts to health and human services:

  • Medi-Cal:
    • “Soft cap” on doctor’s visits
    • Mandated co-payments
    • 10% decrease in Medi-Cal provider rates
    • Eliminates Adult Day Health Care, with $85 million for scaled down version of the program
  • Healthy Families:
    • Higher premiums and co-pays
  • CalWORKs:
    • 8% cut to grants
    • Limits adults to 48 months of cash assistance
    • $100 million cut in children’s grants
    • Reduces county funding for welfare-to-work and childcare services
  • In-Home-Supportive Services (IHSS)
  • SSI Grants for Blind, Aged and Disabled

Even with these severe cuts, the state still needs to address an additional $12 billion deficit. The legislature can still approve a revenue package if a compromise can be reached by June 30th. It is critical that we continue to fight for revenue solutions to prevent further cuts to education, health, and human services.


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