Governor's budget: Deep cuts proposed for children's programs

Governor Releases 2009-10 Budget Proposals, from the California Budget Project, reports on the governor's proposed budget. The governor plans to close the predicted $39 billion budget shortfall (which includes last year's budget shortfall) by cutting spending ($17 billion), raising revenues ($14 billion), and borrowing ($10 billion). The governor proposes to:

Revenues

• Temporarily increase the sales tax by 1.5% and charge sales tax on some services, such as car repair, amusement parks, and sporting events
• Reduce the tax credit claimed for children and other dependents
• Impose a 9.9% oil severance tax
• Increase alcoholic beverage taxes by a nickel a drink

Changes to First 5 and Prop 63 funds (would require voter approval)

• Eliminate the First 5 California Commission and redirect state funds and 50% of county funds to children's programs under the Department of Social Services
• Divert Prop 63 mental health funds to reduce state's costs for mental health managed care

Health

• Eliminate Medi-Cal dental and other benefits for adults
• Restrict Medi-Cal eligibility for low-income adults with children, keeping an estimated 429,000 low-income parents off of Medi-Cal
• Reduce health services provided to some legal immigrants
• Restrict access to health care services for undocumented immigrants
• Eliminate the California Food Assistance Program, which provides food assistance for some legal immigrants who are not eligible for federal food stamps
• Cut funding for Regional Centers, which coordinate services for people with developmental disabilities

CalWORKs

• Suspend the July cost-of-living increase
• Cut CalWORKs grants by 10%
• Eliminate cash assistance
  --> for children in CalWORKs "safety net" program if their parents don't work enough hours.
  --> after 60 months for some children whose caregivers are ineligible for CalWORKs
  --> for some CalWORKs families if an adult fails to attend a "self-sufficiency review"

Early care and education

• Increase child care fees for families up to a maximum of 10% of their income
• Reduce reimbursement rates for providers in voucher-based programs
• Suspend the 2009-10 cost-of-living increase

Schools

• Reduce Prop 98 funds to the minimum required
• Reduce "revenue limit funding" for districts and county offices of education as well as funds for a number of educational programs
• Use some public transit funds to pay for transporting kids to and from school
• Eliminate cost-of-living increases for K-12 educational programs
• Allow districts to cut the school year by five days
• Eliminate the High Priority Schools Grant Program
• Suspend almost all education mandates

For more info

• Summary of cuts to schools, health, and human services from the California Budget Project
• More on child care from the Child Care Law Center
• More on health from Health Access (scroll down to Dec 31)
• More on poverty and CalWORKs from the California Partnership
• More on schools from Parents and Students for Great Schools