SACRAMENTO, CALIF (CDCAN) [Updated 10/09/2010 09:40 AM (Pacific Time)] – Governor Arnold Schwarzenegger line item vetoes made Friday (October 8) that totaled $962 million included eliminating $133 million for mental health services for special education students and as a result – the Governor says - suspends a state law known as the AB 3632 mandate. It is not clear if the Governor’s line item veto in and of itself suspends the mandate or state law – though it clearly does have the impact of not funding it. The Governor in his proposed budget in January, wanted to suspend that state law – which the Budget Conference Committee in August rejected. The mental health services administered by the counties under AB 3632 impacts thousands of children in special education across California . Federal law requires the states to provide these mental health services to eligible students – but California in 1984 passed a state law that designated the counties with primary responsibility in the State to carry out that federal requirement.
The suspension of the state law, mental health and disability advocates say, will have a sweeping impact on special education students would face loss or disruption of critical mental health services.
Major Issue For Many Disability and County Mental Health Advocates
The issue of funding and suspending the AB 3632 mandate is considered critical by mental health and disability advocates – including advocates for the counties because they contend special education students will face loss or disruption of critical mental health services.
The line item veto by the Governor and the resulting suspension of the State law will impact thousands of children with disabilities and mental health needs in special education, including children with autism spectrum disorders, children with other developmental disabilities, and mental health needs.
Impact Will Hit Other Program Budgets
The impact will be felt to the schools, and also to certain agencies – such as the 21 non-profit regional centers contracted by the Department of Developmental Services, to coordinate funding and services to over 240,000 children and adults with developmental disabilities – a significant number, including those with autism spectrum disorders – who are “dually diagnosed” as having a developmental disability and mental health need.
If schools fail to provide the mental health services required under federal law – a student with developmental disabilities and mental health needs eligible for regional center funded services could require the regional center to pay for those services. That is a cost that would not have been calculated in the current budget for the 21 regional centers and could impact availability of funding for other services they fund for thousands of other children and adults with developmental disabilities.
AB 3632 Was Authored by Then Assembly Speaker Willie Brown in 1984
The federal Individuals with Disabilities Education Act (IDEA) entitles all students with disabilities and/or mental health needs to a “free, appropriate public education” that prepares them to live and work in the community.
The federal law includes a requirement for mental health services for children in special education in order to benefit from public education. Under federal law, these children can receive services regardless of their parents’ income level.
Prior to 1984, schools were entirely responsible for providing these mental health services for students in special education who needed them. With major concerns that students with mental health needs were not receiving needed and necessary mental health services as required by federal law, in 1984, then Assembly Speaker Willie Brown (Democrat – San Francisco) authored AB 3632 required the counties to provide these services for students who qualify for them.
Like other state mandates or requirements, the State has not fully reimbursed the counties for these services, forcing them to use other funding. The Department of Mental Health reported to the Legislature this past year during budget hearings that claims for the past three State budget years totaled $211.9 million, of which the State paid $51.2 million from the 2009-2010 claim, leaving a balance of $160.7 million still owed to the counties.
The Governor’s line item veto made October 8, 2010 that he says effectively suspends the AB 3632 mandate means that the counties would not be responsible for providing these mental health services – with responsibility falling back on the schools. How or when that happens – with the school year well underway and three months into the State budget year – is unknown at this point.
Community mental health advocates from nearly every side of the issue had opposed the suspension during budget hearings this past year saying it would cause “chaos” and “confusion” and loss of critical mental heath services for students who need them. Others pointed out that the schools have not been able in the past, prior to AB 3632, to meet the requirements of providing needed mental health services for special education students. Those problems, advocates pointed out, were was the main reason in 1984 for AB 3632.
Background of AB 3632 Mandate Suspension Timeline
· The Governor proposed, as part of his 2010-2011 State Budget proposed last January and again in May, to suspend the AB 3632, that places a requirement or mandate on the counties to provide mental health related services for students in special education. The suspension would mean the K-12 schools would be responsible for providing these mental health services for its special education students – though without providing additional funding for that purpose.
· The legislative budget subcommittees, after hearing the proposal, referred the issue to the Budget Conference Committee.
· The Budget Conference Committee on August 4, 2010 rejected the Governor’s proposal to suspended the AB 3632 mandate and also provided for an augmentation (additional appropriation) of $133 million in General Funds (non-Proposition 98 – the education funding guarantee in the state constitution) to the Commission on State Mandates for payment of prior year AB 3632 mandate claims in 2010-11. (Item 8885-295-0001)
· That amount and the AB 3632 mandate still remained in the main budget bill as passed by the Assembly on October 7th and State Senate on October 8th, which the Governor eliminated using his line item veto power. As a result of that action, the Governor says the AB 3632 mandate is suspended. It is not clear if the result of his line item veto in and of itself suspends the mandate.
OTHER LINE ITEM VETOES HIT CALWORKS, CHILDCARE AND OTHER MAJOR HEALTH PROGRAMS
As reported by CDCAN October 8th, Governor Arnold Schwarzenegger’s line item vetoes totaled $962 million that was deleted from the 2010-2011 State Budget bill before he signed it on Friday, included additional big cuts to CalWORKS ($365.9 million) under the Department of Social Services and CalWORKS’ Stage 3 Child Care ($256 million) under the Department of Education. These reductions are in addition to the cuts approved by the Legislature as part of the 2010-2011 State Budget.
As reported Friday evening (October 8th), the Governor also used his “blue pencil” to cut appropriations made by the Legislature to several programs and services that the Governor previously cut funding to (in addition to the cuts to CalWORKS, CalWORKS Stage 3 Child Care and the AB 3632 Mental Health Special Education Mandate) – including:
· Reduced by $61 million for Children and Adult Services and Licensing (Child Welfare Services under the Department of Social Services)
· Cut by $19 million the Title IV-E Waiver (Child Welfare Services under the Department of Social Services)
· Cut Nearly $22 million in State general funds added by the Legislature for county administration (Department of Health Care Services
· Reduced $10 million in State general funds added by the Legislature for various discretionary clinic grants (Department of Health Care Services)
· Eliminated $1 million in State general funds added by the Legislature for the Prostate Cancer Treatment Program (under Department of Public Health)
· Cut $52 million from the Office of AIDS local assistance programs leaving over $55 million (under Department of Public Health)
· Cut $5 million for the Maternal, Child and Adolescent Health programs leaving $55 million (under Department of Public Health)
· Reduced by $7.6 million State general funds to local entities for the AIDS Drug Assistance Program (ADAP) (under the Department of Public Health)
· Reduced by $6.2 million in State general funds added by the Legislature for community-based senior programs under the Department of Aging (to replace funding that was eliminated by a previous line item veto)
The Governor also used his line item veto on other departments – such as the California Emergency Management Agency, Water Resources, Fish and Game, and also significant reductions to Department of Transportation
Next Steps
· The State Constitution gives a governor the power to reduce spending – by line item in the budget bill or to veto the entire bill.
· The State Constitution also gives the power to the Legislature to over-ride the Governor’s veto of a line item or a bill, but to do so requires 2/3rds vote in the 80 member Assembly (54 votes) and the 40 member State Senate (27 votes)
· The Legislature – in the last 50 years, rarely attempts and when it does, only in a couple of instances, were successful in overriding a governor’s veto.
· The Legislature could try to restore funding eliminated by the Governor by adding the money back in next year when they act on the 2011-2011 State budget or on a revision to the 2010-2011 State budget if there is one. A governor could of course, repeat the process over again, and simply line item veto again.
REVISED (AS OF 10/9/2010) CDCAN LIST OF LINE ITEM VETOES IMPACTING PEOPLE WITH DISABILITIES, MENTAL HEALTH NEEDS, THE BLIND, SENIORS, LOW INCOME FAMILIES
Here is a list of line item vetoes made by the Governor that could have some impact of children and adults with disabilities, mental health needs, the blind and seniors, low income families and workers (cuts or reductions of particular interest, size or impact are highlighted in the color RED and also prefaced by *** for persons who have sight difficulties]
DEPARTMENT OF AGING
Item 4170-001-0001—For support of Department of Aging. I reduce this item from $4,131,000 to $3,991,000 by reducing:
(4) 40-Special Projects from $6,777,000 to $6,637,000, and by deleting Provision 1.
GOVERNOR’S VETO MESSAGE FOR THIS LINE ITEM: I am deleting the legislative augmentation of $140,000 and 0.9 personnel years for support of Community Based Services programs. I am deleting Provision 1 to conform to the action I have taken in Item 4170-101-0001.
***Item 4170-101-0001—For local assistance, Department of Aging. I reduce this item from $35,343,000 to $29,083,000 by reducing:
(4) 40-Special Projects from $18,051,000 to $11,791,000, and by deleting Provision 3.
GOVERNOR’S VETO MESSAGE FOR THIS LINE ITEM: I am deleting the $6,260,000 legislative augmentation to Community Based Services programs. This reduction is necessary to help bring ongoing expenditures in line with existing resources and to build a prudent reserve. I am deleting Provision 3 to conform to this action.
DEPARTMENT OF ALCOHOL AND DRUG PROGRAMS
***Item 4200-001-0001—For support of Department of Alcohol and Drug Programs. I reduce this item from $4,628,000 to $4,353,000 by reducing:
(1) 15-Alcohol and Other Drug Services Program from $45,311,000 to $45,036,000.
GOVERNOR’S VETO MESSAGE FOR THIS LINE ITEM: I am reducing this item by $275,000 and 3.0 positions to help bring ongoing expenditures in line with existing resources and to build a prudent reserve. This eliminates funding for the Offender Treatment Program, consistent with my proposed Budget. I am reducing a total of $18,000,000 for this purpose: $275,000 from this item and $17,725,000 from Item 4200-101-0001.
***Item 4200-101-0001—For local assistance, Department of Alcohol and Drug Programs.
I reduce this item from $83,665,000 to $65,940,000 by reducing:
(1) 15-Alcohol and Other Drug Services Program from $332,191,000 to $314,466,000.
GOVERNOR’S VETO MESSAGE FOR THIS LINE ITEM: I am reducing this item by $17,725,000 to help bring ongoing expenditures in line with existing resources and to build a prudent reserve. This eliminates state funding for the Offender Treatment Program consistent with my proposed Budget. I am reducing a total of $18,000,000 for this purpose: $17,725,000 from this item and $275,000 from Item 4200-001-0001.
Item 4200-104-0001—For local assistance, Department of Alcohol and Drug Programs. I reduce this item from $21,111,000 to $20,448,000 by reducing:
(1) 15-Alcohol and Other Drug Services Program from $38,165,000 to $37,502,000, and by revising Provision 2.
GOVERNOR’S VETO MESSAGE FOR THIS LINE ITEM: I am reducing this item by $663,000 to help bring ongoing expenditures in line with existing resources and to build a prudent reserve. With these reductions $5,104,000 still remains to support the eight existing Residential Perinatal Treatment Programs, a funding level consistent with last year’s funding level for each of the remaining centers. I am revising Provision 2 to conform to this action as follows: “2. Of the funds appropriated in this item, $5,767,000 $5,104,000 shall be used to fund existing residential perinatal treatment programs that were begun through the federal Center for Substance Abuse Treatment grants, but whose grants have since expired and currently are constituted as Women and Children's Residential Treatment Services. For counties in which there is such a provider, the State Department of Alcohol and Drug Programs shall include language in those counties' allocation letters that indicates the amount of the allocation designated for the provider during the fiscal year. Pursuant to Section 11840.1 of the Health and Safety Code, the treatment programs that were established through the federal Center for Substance Abuse Treatment grants are not subject to the county 10-percent match. All of the funds allocated for programs shall be passed through those counties directly to the designated residential treatment programs in each county, respectively.”
DEPARTMENT OF DEVELOPMENTAL SERVICES
No line item vetoes
DEPARTMENT OF HEALTH CARE SERVICES
This department oversees many statewide health and long term care programs, including the federal Medicaid program (called “Medi-Cal” in California ). There were no specific line item vetoes directly to the Medi-Cal program – though cuts to county administration does have impact.
***Item 4260-101-0001—For local assistance, Department of Health Care Services. I reduce this item from $13,285,305,000 to $13,263,331,000 by reducing:
(1) 20.10.010–Eligibility ( County Administration ) from $2,893,028,000 to $2,849,080,000, and
(9) Amount payable from the Federal Trust Fund (Item 4260-101-0890) from -$28,849,145,000 to -$28,827,171,000.
GOVERNOR’S VETO MESSAGE FOR THIS LINE ITEM: I am deleting the $21,974,000 legislative General Fund augmentation for County Administration . This reduction is necessary to bring expenditures in line with existing resources and to build a prudent reserve.
Item 4260-101-0890—For local assistance, Department of Health Care Services. I reduce this item from $28,849,145,000 to $28,827,171,000.
GOVERNOR’S VETO MESSAGE FOR THIS LINE ITEM: I am reducing this item by $21,974,000 to conform to my action in Item 4260-101-0001.
***Item 4260-111-0001—For local assistance, Department of Health Care Services. I reduce this item from $200,496,000 to $190,496,000 by reducing:
(1) 20.35-Primary and Rural Health from $11,054,000 to $1,054,000.
GOVERNOR’S VETO MESSAGE FOR THIS LINE ITEM: I am deleting the $10,000,000 legislative augmentation for various discretionary clinic grants. This reduction is necessary to bring expenditures in line with existing resources and to build a prudent reserve. Federal Health Care Reform alternatively provides $1.4 billion of increased funds over five years to clinics, in addition to substantial increases from the American Recovery and Reinvestment Act. Most of these clinics will continue to receive significant state funding from Medi-Cal and other programs.
DEPARTMENT OF MENTAL HEALTH
No line item vetoes in this department – but Governor made $133 million reduction using line item veto under State Mandates (see below) to the AB 3632 mental health special education mandate, and as a result, has suspended that mandate.
PUBLIC HEALTH
***Item 4265-001-0001—For support of Department of Public Health. I reduce this item from $77,997,000 to $76,997,000 by reducing:
(2) 20-Public and Environmental Health from $395,074,000 to $394,074,000.
GOVERNOR’S VETO MESSAGE FOR THIS LINE ITEM: I am deleting the legislative augmentation of $1,000,000 General Fund for the Prostate Cancer Treatment Program. These reductions are necessary to limit program expansions, to help bring ongoing expenditures in line with existing resources, and to build a prudent reserve. With this reduction, $3,100,000 still remains to support the Prostate Cancer Treatment Program.
***Item 4265-111-0001—For local assistance, Department of Public Health. I reduce this item from $239,617,000 to $174,884,000 by reducing:
(3) 20.20-Infectious Disease from $390,613,000 to $330,880,000; and
(4) 20.30-Family Health from $1,610,589,000 to $1,605,589,000.
I am reducing this item by $57,133,000 by reducing funding to local entities for the following programs:
• $52,133,000 for Office of AIDS local assistance programs, and
• $5,000,000 for the Maternal, Child and Adolescent Health Program.
GOVERNOR’S VETO MESSAGE FOR THIS LINE ITEM: These reductions are necessary to help bring ongoing expenditures in line with existing resources and to build a prudent reserve. With these reductions, $55,109,000 still remains to support the Maternal, Child, and Adolescent Health Program, and $55,412,000 still remains to support Office of AIDS local assistance programs. I am also reducing this item by $7,600,000 General Fund by reducing funding to local entities for the AIDS Drug Assistance Program (ADAP). The Department of Public Health may utilize funding from the ADAP Rebate Fund, which is continuously appropriated, to maintain services, if necessary. This reduction is necessary to provide for a prudent General Fund reserve. With this reduction, $434,013,000 still remains to support the ADAP.
DEPARTMENT OF SOCIAL SERVICES
The two major line item vetoes are to the CalWORKS and child care programs. CalWORKS is the State’s “Welfare to Work” program that includes many parents and children with disabilities and/or mental health needs.
There were no line item vetoes to In-Home Supportive Services (IHSS), community care licensing, foster and adoption assistance programs or SSI/SSP (Supplemental Security Income/State Supplemental Payment) programs.
***Item 5180-101-0001—For local assistance, Department of Social Services. I reduce this item from $3,614,352,000 to $3,248,452,000 by adding:
Unallocated Reduction -$365,900,000.
GOVERNOR’S VETO MESSAGE FOR THIS LINE ITEM: I am reducing this item by $365,900,000 and am instructing the Director of the Department of Social Services to request a corresponding advance of Temporary Assistance for Needy Families Block Grant funds from the federal government for the quarter ending June 30, 2011. This will provide one-time General Fund relief without any adverse program impacts.
***Item 5180-151-0001—For local assistance, Department of Social Services. I reduce this item from $740,599,000 to $679,718,000 by reducing:
(1) 25.30-Children and Adult Services and Licensing from $2,178,571,000 to $2,117,690,000.
GOVERNOR’S VETO MESSAGE FOR THIS LINE ITEM: I am reducing this item by $60,881,000 to help bring ongoing expenditures in line with existing resources and to build a prudent reserve. With this reduction $2,117,690,000 still remains to support the Children and Adult Services and Licensing Program. This maintains the level of funding for the Child Welfare Services Program that was in effect in fiscal year 2009-10. I am reducing a total of $79,956,000 for this purpose: $60,881,000 from this item and $19,075,000 from Item 5180-153-0001.
***Item 5180-153-0001—For local assistance, Department of Social Services. I reduce this item from $359,729,000 to $340,654,000 by reducing:
(1) 26-Title IV-E Waiver from $914,352,000 to $895,277,000.
GOVERNOR’S VETO MESSAGE FOR THIS LINE ITEM: I am reducing this item by $19,075,000 to help bring ongoing expenditures in line with existing resources. With this reduction $895,277,000 still remains to support the Title IV-E Program. This maintains the level of funding for the Child Welfare Services Program that was in effect in fiscal year 2009-10. I am reducing a total of $79,956,000 for this purpose: $19,075,000 from this item and $60,881,000 from Item 5180-151-0001.
DEPARTMENT OF EDUCATION
Item 6110-001-0001—For support of Department of Education. I revise this item from $34,031,000 to $34,030,000 by reducing:
(2) 20-Instructional Support from $139,361,000 to $132,914,000;
(3) 30-Special Programs from $53,845,000 to $53,342,000;
(8) Reimbursements from -$17,293,000 to -$16,790,000;
(9) Amount payable from Federal Trust Fund (Item 6110-001-0890) from -$148,290,000 to -$141,844,000; and by revising Provision 22; and deleting Provision 25.
GOVERNOR’S VETO MESSAGE FOR THIS LINE ITEM: I am deleting the legislative augmentation of $385,000 in reimbursement authority and 2.0 limited-term positions for support of the State Advisory Council on Early Childhood Education and Care (ELAC) because the increase in workload has not been justified. Further, I am vetoing $118,000 in reimbursement authority proposed in the May Revision for one redirected position given that the Sacramento County Office of Education will assume the responsibility for coordinating the activities of the ELAC. The Budget continues to provide authority for 2.0 limited-term positions for the Department to provide additional support for the ELAC’s work, which should be sufficient.
I am revising Provision 22 to conform to this action as follows:
“22. (a) Of the reimbursements appropriated in Schedule (8), $439,000 and 2.0 limited-term positions until July 1, 2013, pursuant to an agreement with the California Children and Families Commission, shall be available to the State Department of Education to support the activities of the Early Learning Quality Improvement System Advisory Committee established by Chapter 307 of the Statutes of 2008, and the Advisory Council on Early Childhood Education and Care (ELAC) pursuant to Executive Order S-23-09.
[Delete the following from the provision: (b) Of the reimbursement funds appropriated in Schedule (8), $503,000 is provided for 1.0 redirected position, 2.0 new limited-term positions until July 1, 2013, and associated committee expenses to support the activities of the ELAC, pursuant to an agreement with the California Children and Families Commission.”]
I am reducing the legislative augmentation of $144,000 General Fund by $1,000 and deleting the provisional language specifying that the Curriculum Development and Supplemental Materials Commission (Commission) is to complete the History/Social Science and Science frameworks. Instead, it is my intent that the remaining $143,000 be used for higher priority activities related to the California Common Core Standards, as directed by the State Board of Education.
I am also deleting Provision 25 to conform to this action. Finally, I am revising this item to conform to the actions taken in Item 6110-001-0890.
Item 6110-161-0890—For local assistance, Department of Education. I reduce this item from $1,232,519,000 to $1,232,518,000 by reducing:
(4) 10.60.050.021-IDEA, State Level Activities from $81,914,000 to $81,913,000, and by deleting Provision 9 to conform to the action I have taken in Item 8885-295-0001.
***Item 6110-196-0001—For local assistance, Department of Education (Proposition 98).
I reduce this item from $1,508,848,000 to $1,252,848,000 by reducing:
(1.5) 30.10.020-Child Care Services from $1,683,503,000 to $1,427,503,000
(f) 30.10.020.012-Special Program, Child Development, Alternative Payment Program—Stage 3 Setaside from $365,918,000 to $109,918,000.
GOVERNOR’S VETO MESSAGE FOR THIS LINE ITEM I am reducing $256,000,000 from CalWORKs Stage 3 child care. This action is necessary to help bring ongoing expenditures in line with existing resources and to build a prudent reserve. With this reduction, $128,823,000 in federal funds remains to support existing Stage 3 child care services through October 2010.
COMMISSION ON STATE MANDATES
***Item 8885-295-0001—For local assistance for reimbursement, in accordance with the
provisions of Section 6 of Article XIIIB of the California Constitution or Section 17561 of the Government Code, of the costs of any new program or increased level of service of an existing program mandated by statute or executive order, for disbursement by the
Controller for claims for costs incurred during the specified periods.
I am reducing this item by $132,941,000 by deleting Schedule (1) (oo) Handicapped and
Disabled Students I and II, and Seriously Emotionally Disturbed Pupils: Out of State Mental Health Services (AB 3632) (Ch.1747, Stats. 1984; Ch. 1128, Stats. 1994; Ch. 654, Stats. 1996) (CSM-4282; 02-TC-40; 02-TC-49; 97-TC-05). This mandate is suspended.
[CDCAN Note: this item refers to the AB 3632 Mental Health Services Special Education mandate]
