FY2012-13 Budget Proposal Includes Steep HHS Cuts
|January 5, 2012||Posted by Kiwon Yoo under Blog||
The governor’s budget proposal was released earlier today ahead of schedule. Unsurprisingly, this year’s budget proposal is a continuation of a years-long trend that cuts deeply into critical HHS programs. Despite the state’s improving fiscal condition, slow economic growth and lower-than-anticipated General Fund revenues were cited as reasons for the following major cuts and adjustments:
- Total expenditure reductions in HHS programs:
- Medi-Cal: $842.2 million
- In-Home Supportive Services: $163.8 million
- Other HHs programs: $86.9 million
- General Fund reductions in HHS programs: $254 million
- Enroll Medi-Cal dual eligibles into managed care and incorporate In-Home Supportive Services (IHSS) as managed care benefits over 3 years; eliminate domestic IHSS services to those in shared living arrangements
- Rate reduction for Healthy Families managed care by 25.7%
- Eliminate the Managed Risk Medical Insurance Board (MRMIB), with DHCS assuming most of its responsibilities, including Healthy Families (October 2012), AIM, MRMIP and PCIP (July 1, 2013)
- Eliminate the Department of Mental Health and the Department of Alcohol and Drug Programs, with DHCS assuming most of its responsibilities
This proposal presumes a the passage of a temporary 0.5% sales tax increase, as well as an increase in personal income tax on high-income taxpayers. Significant trigger cuts will take effect in the event that it does not pass and General Fund revenues fail to meet expectations; none of these cuts, however, will directly affect HHS programs/departments.
The budget is available online.