California Update
  Volume 8, Issue 1  |  February 17, 2004

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CIWC Home > CIWC's Newsletter > Feb. 17, 2004


Governor's Budget Proposal Threatens Immigrant Programs

If implemented, the fiscal year 2004–05 budget proposal released by Gov. Arnold Schwarzenegger on Jan. 9, 2004, would seriously jeopardize the health and well-being of low-income immigrants in California. The proposal relies on spending reductions, program caps, and cost-shifting—instead of increased taxes or alternative sources of revenue—to close the state’s fiscal deficit.

The governor’s plan includes previously proposed mid-year caps on immigrant health and human service programs, and it outlines a proposal that would eliminate four of the state’s programs for immigrants. The governor proposes to create a single block grant for the counties to provide services to immigrants, services which currently are provided through the California Food Assistance Program (CFAP), the Cash Assistance Program for Immigrants (CAPI), CalWORKs and Healthy Families for immigrants. Although the details of this proposal remain unclear, it is likely that a block grant system would allow counties enormous discretion to determine eligibility criteria and the scope of benefits provided to low-income immigrants.

“Block-Granting” of Immigrant Programs. Although the budget plan does not provide enough information for a comprehensive analysis, we are very concerned about the implications of a block grant funding system. The proposal does not guarantee that vulnerable immigrants will receive critical services. Historically, the transfer of responsibility for services to the counties has resulted in the erosion or elimination of programs, due to either inadequate funding or pressure on the counties to address other priorities. The foreseeable result would be a significant reduction in immigrants’ access to and eligibility for services, confusion in service delivery, and administrative burdens stemming from the lack of uniformity among California’s 58 counties.

The budget proposal does not specify the amount of funding to be allocated for the block grant, but merely hints that a “combined appropriation” will be released in the governor’s May revision to the budget. Despite its lack of detail about this proposal, the budget plan estimates that the restructuring will yield approximately $6.6 million in general fund savings realized from anticipated “efficiencies.”

Extending Previously Proposed Mid-Year Cuts into 2004-05. The governor’s budget plan assumes over $3.9 billion in savings from the mid-year cuts that were proposed in November 2003 but which have not yet been implemented. The budget would extend these proposed cuts into 04–05, and the cuts would include the following:

Responding to pressure from disability rights advocates, the governor rescinded his earlier proposal to impose caps on regional center services.

Essential Health Care Programs Also May Be Targeted. The governor’s budget proposal for 2004–05 includes severe cuts in the Medi-Cal program and repeatedly calls for measures that would reduce access to health care for low-income families. The administration proposes to revisit recent improvements in the program, including continuous eligibility for children, the Aged and Disabled Federal Poverty Program, the 1931(b) program for low-income families, the Child Health and Disability Prevention (CHDP) Gateway program, accelerated enrollment, and “express lane eligibility.” As further details are released, we will keep you posted on relevant proposals or developments.

More information regarding the 2004–05 State Budget is available on the California Dept. of Finance’s website: www.dof.ca.gov. Questions regarding this update can be directed to Jeannette Zanipatin at 916.448.6762, ext. 202.


Save the Date! – May 17, 2004

WHAT:
Immigrant Day
WHERE: Sacramento, California
Join us for a day in Sacramento, where we will celebrate the contributions of immigrants and support health and social service programs for immigrants in California.
SPONSORED BY
California Immigrant Welfare Collaborative
AND
Interfaith Coalition for Immigrant Rights
 

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