California Update
  Volume 8, Issue 4  |  August 10, 2004

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CIWC Home > CIWC's Newsletter > August 10, 2004


IMMIGRANT PROGRAMS REMAIN INTACT
Governor Schwarzenegger Signs 2004-05 State Budget

When Governor Arnold Schwarzenegger signed the $105.3 billion state budget for 2004–05 on July 31, immigrants’ rights leaders and advocates applauded both the legislature and the governor for maintaining critical immigrant programs and rejecting most health and welfare cuts that had been previously proposed. Many warned, however, that this year’s budget fails to adopt any major fiscal reforms or to address the ongoing structural deficit in California, and that instead it increases the probability that painful cuts and decisions will have to be made in the future.

Last week the governor released the California Performance Review’s report—2,500-plus pages of recommendations to overhaul state government. (A copy of the report is available on the CPR website at www.report.cpr.ca.gov/.) The report proposes sweeping changes to state services and programs, including: merging various state departments and agencies into eleven “mega-agencies”; shifting responsibility for numerous health and human services programs from counties to the state; and consolidating the application process for Medi-Cal, CalWORKs, and food stamps under an Internet-based system administered by private contractors. As the legislature grapples with the CPR recommendations and prepares for the governor’s January proposals on Medi-Cal redesign and next year’s state budget, advocates for immigrants and the poor must remain vigilant and defend programs that protect the health and well-being of all Californians.

The following is an overview of the final 2004–05 State Budget and its impact on immigrants and low-income families. CIWC would like to thank all legislative leaders, organizational allies, service providers, and individuals who fought to maintain these vital programs. Congratulations and thanks to everyone!

IMMIGRANT PROGRAMS

Health and Human Services Programs for Immigrants. Maintains all state programs for immigrants, including Medi-Cal (full-scope and nonemergency services), Healthy Families, CalWORKs, California Food Assistance Program (CFAP), and Cash Assistance Program for Immigrants (CAPI). In May, the governor withdrew his earlier proposals to block-grant immigrant health and human services programs and to cap enrollment of immigrants in Medi-Cal, Healthy Families, CalWORKs, CFAP, and CAPI. Thousands of sick children, pregnant women, low-income seniors, women with breast or cervical cancer, and persons with disabilities would have been denied services or placed on lengthy waiting lists.

Naturalization Services Program. Restores $1.5 million for the Naturalization Services Program (NSP), which provides funding to local governments and community-based organizations to assist immigrants obtain U.S. citizenship. Since its inception in 1999, the NSP has helped more than 93,000 immigrants across California apply for U.S. citizenship. The governor estimates that this level of funding will provide naturalization services to approximately 4,300 individuals in 2004–05.

California Veterans Cash Benefit Program. Preserves the California Veterans Cash Benefit Program (CVCBP), which provides subsistence aid to elderly Filipino-American veterans who fought for the U.S. in World War II. This program was established in 2000 to recognize the immeasurable contributions of over 100,000 Filipino soldiers who were commissioned by the U.S. to defend this country during WWII. The legislature rejected the governor’s proposal to eliminate the CVCBP and deny approximately 1,700 surviving veterans a state grant equivalent to other veterans’ aid.

Cash Assistance Program for Immigrants. Requires counties with 70 or more CAPI recipients to establish a Supplemental Security Income (SSI) advocacy program and assist CAPI applicants and recipients apply for federal SSI, for a savings of roughly $3 million. Counties with smaller caseloads will be encouraged to establish similar programs for their CAPI clients. This program, which is inspired by the SSI advocacy program operated by Los Angeles County since March 2002, hopes to maximize federal dollars without cutting off vital services for seniors and people with disabilities. CIWC will monitor the implementation of the SSI advocacy program to ensure that CAPI applicants and recipients do not experience any unnecessary hardships or hurdles in the CAPI application process. The Dept. of Social Services will submit a report to the legislature by July 1, 2007, on outcomes and savings for the state. The program is scheduled to sunset on July 1, 2009.

Multilingual K-12 Website. Allocates $266,000 in federal funds to develop a multilingual website and electronic clearinghouse of translated materials for limited–English-speaking parents of children in California’s K–12 public education system. For more information, please contact Vik Malhotra with Asian Americans for Civil Rights & Equality (AACRE) at 916.321.9001.

HEALTH CARE

Healthy Families Program. Raises monthly premiums for children with family incomes between 201 and 250 percent of the federal poverty level from $9 to $15 per child and $27 to $45 for three or more children. Starting July 1, 2005, families above 200 percent of the federal poverty level will be charged higher premiums for the same scope of benefits.

Medi-Cal Redesign. Delays release of the governor’s Medi-Cal redesign proposal until January, as part of the governor’s 2005–06 budget proposal. The governor’s proposal will likely call for sweeping changes to the Medi-Cal program, which provides health coverage to hundreds of thousands of low-income children and families. Options under consideration include: requiring certain Medi-Cal beneficiaries to pay significantly higher out-of-pocket costs to retain coverage; imposing new monthly premiums and increased copayments to access services; restructuring the eligibility determination and enrollment process; and revisiting recent expansions and program improvements. No major cuts or changes to Medi-Cal were adopted in this year’s budget. For more information and updates, visit the state’s Medi-Cal redesign website at www.medi-calredesign.org.

Enrollment Caps. Rejects enrollment caps in Healthy Families, the California Children’s Services (CCS) program, the Genetically Handicapped Persons Program (GHPP), and the AIDS Drug Assistance Program (ADAP). In May, the governor rescinded his earlier proposal to freeze enrollment in these critical programs.

SOCIAL SERVICES

CalWORKs. Rejects several of the governor’s earlier proposals, including a 5 percent grant reduction for all recipients and a 25 percent cut to child-only grants for parents who are sanctioned, timed off, or fail to meet the work requirements. The budget delays the July 2004 cost-of-living adjustment (COLA) until November 2004. In addition, the governor reduced CalWORKs employment services funding by $40 million.

The most far-reaching changes to the CalWORKs program, however, are the revamped work requirements that will take effect on Nov. 1, 2004. The final budget requires recipients to meet 20 of 32 hours per week in “core” work activities, which do not include education, job-skill development, and adult basic education. Vocational education will count towards the core work requirement for only 12 months out of the 60 months on aid. On a positive note, the budget eliminates the 18- to 24-month time limit for welfare-to-work activities so recipients may engage in education and training programs at any point during the 60-month period.

Supplemental Security Income/State Supplementary Payment (SSI/SSP) Program. Passes through the federal COLA of 2.2 percent to SSI/SSP recipients in January 2005 but delays the state COLA of 2.8 percent until April 2005, for a savings of $34.6 million in 2004–05.

Statewide Fingerprint Imaging System. Continues to fund the Statewide Fingerprint Imaging System (SFIS) at $7.6 million despite intense advocacy by low-income advocates and allies to end this program. The SFIS requires food stamps and CalWORKS applicants, including those who are not seeking benefits on their own behalf, to be fingerprinted and photographed. A recent state audit questioned the cost-effectiveness of the program and suggested that the SFIS may undermine national outreach efforts to increase participation in the Food Stamp Program by eligible individuals. AB 2013 (Steinberg), which would eliminate the SFIS, has been held in the Senate Health and Human Services Committee.

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A summary of the final budget and related documents can be found at the Dept. of Finance’s website at www.dof.ca.gov. For those interested in more detailed information, the 2004–05 Budget Bill is SB 1113; the health trailer bill is SB 1103; and the social services trailer bill is SB 1104. If you have any questions, please contact Rini Chakraborty at 916.448.6762. Thank you for your continued interest and support of immigrant programs!

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