On Tuesday, lawmakers on the California Legislature's joint budget committee refused to cut state worker pay and spared that state's In-Home Support Services the major cut that Gov. Arnold Schwarzenegger proposed as part of his plan to solve the state's $24.3 billion deficit.
Under the governor's budget proposal, IHSS would stand to lose roughly $765 million, resulting in a near-elimination of services for nearly 400,000 people---or 90 percent of the elderly or disabled persons currently receiving care. Making such drastic cuts to California's IHSS program to make up for budgetary shortfalls would also result in more people having to resort to institutional care (nursing homes or other residential institutions)-- which is estimated to be four times more expensive to the State.
Assemblywoman Noreen Evans, who chairs the budget conference committee, reiterated the counter-productiveness of such large cuts to balance the deficit. Such large cuts would have been tantamount to cost shifting, Evans told the San Francisco Chronicle, as people would receive more expensive services at already-strained hospitals and nursing homes. "The imagination runs wild on what would actually happen to these people," said Evans. In contrast, the Conference Committee rejected the Governor's near-elimination of IHSS and passed cuts totaling $117 million, which would eliminate services for slightly less than 10% of those currently enrolled.
California Home Care Workers Rally at the State Capitol to Save the Services they Provide to California's Most Vulnerable: SEIU has played a big role in the movement to fight these cuts, mobilizing support for a fair state budget and balance budget approach that protects middle-class families, seniors, kids, and people with disabilities. Last week, SEIU released a TV ad arguing for a balanced approach and earlier this week, hundreds of home care workers rallied on the grounds of the California State Capital. "Stop home care cuts" was the message home care workers made loud and clear on the grounds of the California State Capital, as care providers from across the state displayed a 625 square-foot sign made up of more than 75,000 postcards calling for an end to the governor's drastic cuts to the In-Home Supportive Services (IHSS) program. In addition to the TV ad campaign, SEIU is encouraging Californians to weigh in for common sense budget at www.commonsense4ca.org.
The bottom line: Laying off state workers from their jobs and cutting their pay on top of the 9.2 percent cut those workers have taken through unpaid furloughs days is not the answer to solving this budget crisis. Neither is shredding California's social safety net and decimating state programs like the welfare-to-work program and health insurance for children. To produce revenue for the state, the legislative budget panel instead approved on Tuesday plans to hike up taxes on oil and tobacco, which would produce an estimated $830 million and $1 billion, respectively, in the coming fiscal year. Repealing a corporate tax break approved only a few months ago would produce another $80 million.
Senate President Pro Tem Darrell Steinberg (D-Sacramento) and Assembly Speaker Karen Bass (D-Los Angeles) said yesterday at their press conference that they "expect that [their] Republican colleagues will be responsible" in helping them pass a "compromise" budget. Lawmakers are meeting with Schwarzenegger again today, and the two Democratic leaders are holding out the possibility that common ground can be reached to put a Legislature-approved plan on how to close the state's deficit by the middle of next week. Highlights of the Legislature's approach to solving the budget crisis at California Progress Report here.

