On Friday May 13, Governor Jerry Brown released his FY 2016-17 revised budget
plan. The May Revision implements several proposals aimed at
addressing poverty and improving economic stability, including additional
funding for the incremental increase toward an approved $15 an hour minimum
wage and support for the Senate’s housing and homelessness package funded
through Prop. 63, the Mental Health Services Act (MHSA).
budget also incorporates additional funding for Medi-Cal and services for
people with developmental disabilities from the recently passed Managed Care
Organization (MCO) tax, which raises more than $1 billion in revenues.
Additionally, the budget includes additional resources to cover all 185,000
estimated undocumented children now eligible for Medi-Cal and extends full
Medi-Cal coverage for another year to newly qualified immigrants—new
Californians here less than five years.
Unfortunately, the budget still retains the discriminatory Maximum Family Grant
(MFG) rule, and fails to provide coverage for the remaining
uninsured undocumented immigrants. That said, the MFG repeal champion, Senator Holly Mitchell
(D-Los Angeles) is continuing to fight for its repeal through her SB 23 that is
currently in the Assembly.
is pleased that Governor Brown is continuing to look for ways to improve
helping strengthen families. The state's top priority needs to be supporting
hard working families and ensuring California's most disadvantaged and
underserved are given a chance to succeed. CFRA recognizes there is still more
work to be done, and will continue to monitor the budget process, and weigh in
as needed to ensure the Legislature is addressing the needs of our members and
clients throughout the state.
Highlights of the FY 2016-17 Revised Budget Proposal:
Provides additional $45.4 million for Health4All
Kids initiative ($188.2 million total): These new funds will help to
provide health insurance to an additional 15,000 kids (185,000 total) that are
estimated to benefit from California’s expansion of full-scope Medi-Cal to
undocumented children up to age 19 with family income up to 266% FPL. The state
implemented this new expansion May 16.
Includes $38.1 million in funding for one-year delay of the Newly Qualified
Immigrant Wrap: This funding will allow immigrants here less
than five years to remain on full-scope Medi-Cal until January 1, 2018 when
they will be transitioned to a Covered California Qualified Health Plan with
premium and cost-sharing assistance paid by Medi-Cal.
Allocates $1.1 billion in MCO tax financing to pay for Medi-Cal, In-Home
Supportive Services (IHSS), and developmental disability services: This additional financing comes from authorization of a tax on
enrollment of Medi-Cal managed care plans and commercial health plans approved
in February. These funds will be used in part to offset the following key
Developmental Services ($287 million): Funds will be used to pay
for various developmental services programs, including rate adjustments for
community-based providers serving individuals with developmental disabilities.
Includes $2.2 billion in federal funding for California’s Medi-Cal 2020
Waiver: These federal funds will help pay for implementation of
California’s new Medi-Cal 2020 waiver which includes initiatives to improve
healthcare quality including: Public Hospital Redesign and Incentives in
Medi-Cal, the Global Payment Program, Whole Person Care Pilots, and the Dental
Allocates $5 million in additional funds to implement Federal Medicaid
Managed Care regulations: These funds will be used to implement the
new Medicaid Managed Care regulations as well as the Medicaid fee-for-service
access standards and monitoring. Aspects of the regulations could negatively
impact California’s current financing structure for Medi-Cal.
Provides an increase of $86.4 million for Behavioral Health Treatment
services ($180.2 million): These costs reflect the transitioning of
these services to Medi-Cal from the state’s Developmental Services system.
Includes a $6.4 million increase for Continuum of Care Reform: These funds
will go towards implementation of this initiative including participation in
child and family teams, mental health assessments for children in foster care,
and training for mental health providers.
Provides an increase of $2.2 million for Institutional Deeming: These
funds will help to provide transition assistance to approximately 433 children
currently enrolled in the Home and Community-Based Services Wavier for Persons
with Developmental Disabilities.
Other Health Programs
The May Revision includes support for lead-related
Provides $180,000 to the Department of Public Health for the Childhood Lead
Poisoning Prevention Fund: These funds will be used to update the IT
system used to track lead exposure and contamination throughout the state.
Provides $480,000 to the Safe Drinking Water Account at the State Water
Resources Control Board: These funds will be used to pay for staff to assist
local efforts for water quality testing and improve public water system
compliance with federal reporting requirements.
Humans Services Programs
Includes a 1.4% increase in CalWORKs grants for
2016-17: The May revision increases CalWORKs funding to provide a 1.4%
increase to grants. The January budget proposal included no new funding for
Maintains restoration of 7% across-the-board reduction for In-Home
Supportive Services (IHSS) hours: This restoration will use proceeds from
the newly enacted MCO tax.
Includes no new funding to repeal the Maximum Family Grant (MFG): No new funding to repeal the MFG, a discriminatory
provision of CalWORKs that denies assistance to new children in families that
received benefits 10 months before the child’s birth. The revision fails to
include funding for a repeal, however, state legislators highlighted the repeal
of the MFG as a priority for this year.
Includes no new funding for the Child Care Program: The May revision
includes no new dedicated funding for the Child Care Program.
Maintains a 2.76% cost-of-living adjustment (COLA) to the state portion of
SSI/SSP for seniors and persons with disabilities: Leaves intact the January proposal for individuals to receive an additional $17
per month, and couples an additional $31 per month in SSI/SSP grants. (This
amount includes both the federal COLA and state increase.) This proposal marks
the first state COLA increase in SSI since 2006.
an increase in funds from the Proposition 47 state savings to the California
Victim Compensation Fund and to the Safe Neighborhoods and Schools fund: The
California Victim Compensation Fund to support Trauma Recovery Centers will now
be funded an additional $1 million, with a new total of $3.9 million. The Safe
Neighborhoods and Schools fund to reduce truancy and drop-out rates in K-12
schools will now be funded an additional $2.5 million, with a new total of
Includes $2.8 billion to fund inmate health care, dental care, and mental
health services and programs: Specifically allocates $1.9 billion for
prison medical care, $26.8 million for pharmaceutical costs, and $2 million to
increase health care staff in state contract facilities.
Poverty Reduction Measures
Implements minimum wage increase to $10.50 per
hour: This April, the Governor signed one of the most ambitious
minimum wage increases in the country, which sets a gradual wage increase to
$15 per hour by 2023. The budget proposal is on track for the 2023 goal by
raising the minimum wage to $10.50 per hour for eligible state workers
effective January 1, 2017.
Includes $2 million to support additional outreach for the refundable state
Earned Income Tax Credit (EITC): The Governor’s January budget estimated $380
million for the second year of the refundable state EITC
for low-income families. California families with incomes between $6,000 and
$13,000 qualify for this tax credit. April tax filings indicated that while
over 350,000 households claimed the credit, more than 68,000 eligible taxpayers
have not. This budget includes additional funds to reach more Californians who
Incorporates the Senate’s $2
billion proposal to develop and administer homelessness and affordable housing
programs, specifically for addressing chronic homelessness and mental health.
The proposal would be funded through revenues from Proposition 63 and requires
a 2/3 vote of the legislature.
Increases K-14 Education Funding: The
Proposition 98 guarantee remains $71.9 million for FY 2016-2017. For the May
Revision, reduced revenue estimates this past year will result in a reduced
amount going toward backfilling previous years
Per-Pupil Spending Increases: The state is projected to spend
$14,550 per student.
Additional One-Time Discretionary Spending: A proposed additional $134.8 million in one-time discretionary funding to schools for
the implementation of the state-adopted academic standards, professional
development and support for teachers, purchase new instructional materials, and
other infrastructure investments.
For more information, visit the Governor's budget website.