BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 5 X1
                                                                  Page  1


          (  Without Reference to File  )

          SENATE THIRD READING
          SB 5 X1 (Ducheny)
          As Amended December 18, 2008
          Majority vote 

           SENATE VOTE  :Vote not relevant  
           
           SUMMARY  :  Contains necessary statutory changes to amend  
          appropriations for the Department of Developmental Services  
          (DDS) and the Department of Social Services (DSS) contained in  
          the Budget Act of 2008.  Specifically,  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, 2010, inclusive,  
            by 3%, 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 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:








                                                                  SB 5 X1
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             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 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.  

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

          4)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.

          5)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  :  Consistent with Special Session revised 2008-09  
          Budget package.  


           Analysis Prepared by  :    Nicole Vazquez / BUDGET / (916)  








                                                                  SB 5 X1
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          319-2099


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