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Assembly Democrats Release own California Budget Proposal

Earlier this week, California Assembly Democrats released a proposed budget that contains fewer cuts to Health and Human Services (HHS) than Governor Jerry Brown’s May Revise. As previously noted, Gov. Brown’s plan included $450 million in spending reductions to HHS.

Some of the Legislature’s modifications of Gov. Brown’s plans include:

– Reducing hospitals’  funding by $387.4 million:

  • Changing the reimbursement methodology for Non-Designated Public Hospitals (NDPH). ($94.5 million in General Fund savings).
  • Dividing unspent Health Care Coverage Initiative funding between California and Designated Public Hospitals. ($100 million in GF savings).
  • Redirecting $150 million in hospital fee revenue (originally to fund increased rates to managed care plans for them to increase payments to hospitals) to offset GF expenditures for providing health coverage to children. ($95 million in GF savings)

– Denying the Governor’s proposals to reduce provider rates in the Healthy Families Program (HFP) to Medi-Cal rates and to transfer all children in the program to Medi-Cal. Approves transitioning children in HFP whose family income is below 133% FPL to Medi-Cal, as required by the ACA. ($7.3 million in GF savings)

– Reducing Medi-Cal expenditures by approving a modified version of the Governor’s proposal to provide managed care for Medi-Cal and Medicare services for dual eligibles and to shift long-term care services, including In-Home Supportive Services (IHSS) and nursing home care, into managed care. ($611.5 million in GF)

– Rejecting the Governor’s proposal to reduce IHHS hours by 7% but continues a 3.6% Across the Board reduction in authorized hours.

 The Legislature’s budget diverges from the Governor’s plan by less than 1% of total spending. In addition, the Legislature proposes $614 million reserve, $434 million less than the $1.048 billion reserve proposed in Gov. Brown’s May Revise.

Under a voter-approved law, lawmakers face pay cuts if a budget is not passed by Friday.

Find the full document here.