County Welfare Directors Association of California

Social Services Budget Cut Backs

Date: May 15, 2001

Fr: Frank Mecca, Wendy Russell

RE: State Budget Update #4 - Governor Releases the May Revision - Urgent and Immediate Action Needed

Yesterday the Governor released his May Revision of the budget. While we were briefed yesterday by CDSS staff, there are still some significant details of the Revise that are not clear at this point, even to CDSS. This update summarizes the significant proposals contained in the May Revision as we know them today. More detail will be forthcoming during this week's CWDA meetings.

Overall, the state budget situation is bad. The current year and budget year revenues are now estimated to be $3.4 billion lower than predicted in January. The May Revision reduces spending by $3.1 billion from the January Budget.

The May Revision documents can be located on the Department of Finance web page at Understand that this document is not particularly clear or thorough when it comes to specific social services programs. The May Revision budget hearings will be held this week in both the Assembly and the Senate.

Child Welfare Services- The Governor proposes a deep reduction to the base CWS program. Specifically, the budget essentially freezes the program at current year levels, thus cutting $94 million total funds ($38 million GF and $41 million federal funds) that counties would have received under the agreed-upon budgeting methodology to pay for actual cost of doing business increases. This cut translates roughly into 607 social workers statewide. (Please note that the emergency workload relief augmentations and the hold harmless are preserved in the budget.)

Adult Protective Services - The Governor proposes to reduce APS funding by $13.3 million GF and $4.5 million federal funds, for a total cut of $17.8 million. This cut freezes the program at the current year level, which translates into a 25 percent reduction from the Administration's own estimate of the amount needed to fully fund the program.

County Services Block Grant (CSBG) - The May Revision proposes a reduction of $5.9 million for the service costs that are not related to APS and deemed "discretionary." These funds also draw down estimated federal funds of $5.3 million for a total program reduction of $11.2 million.

CalWORKs (Displayed in Total Funds)

IHSS - The May Revision includes state participation to fund the $1.00 increase for provider wages, and $0.60 for benefits. The budget also provides for state participation in a 2.31 percent increase in wages for non-Public Authority workers. The budget also proposes to fund the state share of a 5.31 percent increase in the Maximum Allowable Contract Rate.