State Budget Update: Legislature-Approved Cuts to IHSS Now Total 486.1 Million

Legislators in California’s Assembly and Senate agreed on Wednesday, March 3rd to cut $128.3 million from the the In-Home Supportive Services program, but left open for the time being how those cuts would be achieved.

This is in addition to $357.7 in cuts that both houses approved last month, bringing total cuts to IHSS to $486.1 million.

Regarding the $128.3 million cut:  legislators did not come to a decision about where that money would come from, but, according to the CDCAN DISABILITY RIGHTS REPORT:

  • The Budget Conference Committee did not actually reject yet the Governor’s proposals for an additional 8.4% across the board reduction in authorized services hours for all IHSS recipients or reject his proposal to eliminate domestic and related services for children under age of 18 years old living with their parent, and for adults living in a shared living arrangement.
  • The Budget Conference Committee, through its action today, left open the possibility that those proposals by the Governor or proposals by the Senate Budget Committee or by the Assembly Budget Committee could be ways to achieve the $128.3 million reduction.

Bottom line: It’s going to be at least a week before legislators and the governor figure out where that reduction is going to come from.

Read all the details here

Regarding the earlier, $357.7 million proposed cut: These cuts are considered final, and will, barring any unforseen events, become part of the final budget package.

Here’s where these cuts are coming from:  (This is all adapted from the CDCAN DISABILITY RIGHTS REPORT)

Requires all IHSS recipients to get a note from a doctor certifying them as being eligible for IHSS
Effect: $152 million reduction in spending from state general funds and an estimated over 40,000 children and adults losing eligibility for IHSS as a result.

A reduction in IHSS caseload estimates based on more recent, actual data

Effect: $83.2 million reduction in spending from state general funds

An expected approval of 6% increase in federal Medicaid (Medi-Cal) matching funds as a result of IHSS qualifying under the new federal Community First Choice Option program — which aims to move care recipients from more expensive nursing homes into in-home care.
Effect: A spending reduction (savings) of $121.1 million in State general funds

Reduction in spending for county IHSS Advisory Committees and elimination of the State mandate.

Effect: A savings of $1.6 million