BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                    SB 5X|
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                              UNFINISHED BUSINESS


          Bill No:  SB 5X
          Author:   Ducheny (D)
          Amended:  12/18/08
          Vote:     21

           
          SENATE VOTES NOT RELEVANT

           ASSEMBLY FLOOR  :  Not available 


           SUBJECT  :    Budget Act of 2008:  human services

           SOURCE  :     Author


           DIGEST  :    This bill states that it addresses the fiscal  
          emergency declared by the Governor by proclamation issued  
          on December 1, 2008, pursuant to the California  
          Constitution. 

           Assembly Amendments  add necessary statutory changes to  
          amend appropriations for the Department of Developmental  
          Services and the Department of Social Services contained in  
          the Budget Act of 2008.  

           ANALYSIS  :    

          This bill:

          1.Reduces Reimbursement of Providers Participating in the  
            Regional Center System:  Reduces certain payments for  
            services delivered from February 1, 2009 to June 30,  
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            2010, inclusive, by three percent, except as specified.   
            This reduction, as requested by the Governor, would  
            reduce the Regional Center systems' Purchase of Services  
            line item by $40.4 million ($24.1 million General Fund  
            (GF)) for 2008-09 and $100.8 million ($60.2 million GF)  
            in 2009-2010.  

            Exempts from this reduction are Supported Employment, the  
            SSP supplement for independent living, and services with  
            "usual and customary" rates as established in regulation.  
             In addition, other services may be exempt from this  
            reduction if a Regional Center demonstrates that a  
            non-reduced payment is necessary to protect the health  
            and safety of a consumer and the Department of  
            Developmental Services (DDS) has granted written approval  
            of this specific exemption.

            Directs DDS to implement Regional Center contract  
            amendments to make adjustments for 2008-09 due to these  
            changes.

          2.Reduces Regional Center Operations:  Suspends several  
            administrative and case management requirements in  
            existing law from February 1, 2009 to June 30, 2010,  
            inclusive, in order to provide flexibility to each  
            Regional Center for the purpose of reducing their  
            Operations expenditures.  This reduction, as requested by  
            the Governor, would reduce the Regional Center Operations  
            line item by $6.6 million ($4.6 million GF) in 2008-09  
            and $17.4 million ($12.2 million GF) in 2009-2010.   
            Requirements which are to be suspended include:

                A.      The average service coordinator-to-consumer  
                  ratio for certain consumers currently established  
                  at 1:66;

                B.      The overall average service  
                  coordinator-to-consumer ratio for all consumers,  
                  who have not moved from a Developmental Center to  
                  the community, at an Regional Center currently  
                  established at 1:62;

                C.      The requirement that Regional Centers shall  
                  either have in-house, or contract for, the  

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                  following expertise:  i) criminal justice  
                  expertise; ii) special education; iii) family  
                  support; housing; iv) community integration; and,  
                  v) quality assurance; and,

                D.      The reporting to the DDS regarding prior year  
                  fiscal expenditures for administrative services,  
                  including salary schedule, legal services, and  
                  consultant contracts.

          3.SSI/SSP:  Suspends the pass-through of the January 2009  
            federal SSI cost-of-living adjustment, effective as of  
            April 1, 2009.  This reduction to December 2008 grant  
            levels would reduce assistance by $117 million in 2008-09  
            and $471.8 million in 2009-2010.  

          4.In addition, it suspends the June 1, 2010 cost-of-living  
            adjustment for SSI/SSP.  This reduction would reduce  
            assistance by $26 million.

          5.CalWORKs COLA:  Suspends the July 1, 2009 CalWORKs  
            cost-of-living adjustment for the 2009-10 fiscal year.   
            This reduction would reduce grants by $99 million (GF) in  
            2009-2010.

           Contingency Clause
           
          Contains a contingency clause which states that the  
          contents of this bill are not enacted unless AB2 or SB 2 X1  
          and AB 9 or SB 9 X1 are enacted.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          RJG:nl  12/18/08   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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