Analysis of Governor s January Budget Proposal California Food

Analysis of Governor’s January Budget Proposal California Food Policy Advocates has quickly sifted through the Governor’s massive budget proposal to identify impacts on nutrition. We were specifically looking for proposals that are direct hits on the ability to purchase food, squeeze resources for food out of the family budget, or setback efforts to reduce hunger in California. As the budget process continues, we would appreciate your help in identifying other cuts and in assessing the impact of proposed reductions. Our preliminary analysis appears below. Item Cut to CALWorks Cash Assistance Provides temporary cash assistance to low-income children and families to meet basic needs such as shelter, food, and clothing during times of crisis. Cut to State Supplemental Payment Cash Assistance The SSI/SSP program provides cash assistance to lowincome persons who are elderly, disabled, or blind. Governor’s Proposal • Suspends the Reference Health Human Services Budget Page HHS Hit Impact Amount Squeeze Setback $12.2 million in 2002-3 $80.3 million from suspending the COLAs $339.7 million from the 6.16% reduction Concern This would bring the maximum grant for a family three down from $679 to $637 in a high cost region and from $647 to $607 in lower cost regions. This loss of assistance will have a direct impact on recipients’ ability to purchase food. For more info and action Visit Western Center on Law and Poverty’s Advocate’s Resource on welfare at www.wclp.org scheduled June and October Cost-ofLiving Adjustments. • Decreases CALWorks 154 maximum aid payments by 6.16% effective July 1, 2003. See also: http://www.wclp.org/advocates/welfare/legup date.html 518016.30.010 • Suspends the scheduled June 2003 and January 2004 Cost-of-Living adjustments. • Cuts SSI/SSP Health Human Services Budget Page HHS 157 $24.1 million from the June COLA $280 million from the January COLA $662.4 million from the 6% cut. This reduces assistance Visit Western Center on Law and Poverty’s from $757 to $722 for Advocate’s Resource on welfare at single people and $1,344 www.wclp.org to $1,244 for couples. This loss of assistance will have a direct impact on recipients’ ability to purchase food. See also: http://www.wclp.org/advocates/welfare/legup date.html 5180-16.70 payments by 6%, down to the federally required maintenanceof-effort level. Page 1 of 5 Item Elimination of Senior Brown Bag Program Funding The Brown Bag Program provides surplus fruits, vegetables, and other unsold food products to low-income elderly persons. Senior home delivered meals Meals for elderly people 60 years and older who are homebound. Governor’s Proposal Eliminates state funding for the Brown Bag Program beginning April 1, 2003. Reference Hit Health and Human Services Page HHS 23 Department of Aging Special projects 4170-40 Impact Amount Squeeze Setback $609,000 Concern This important program not only provides valuable food assistance, it also does an amazing job of leveraging additional resources. Every $1 of state funds leverages $35-$40 in other support. For more info and action Contact the California Association of Food Banks (www.cafoodbanks.org) or email Sharon Eghigian at sharon@cafoodbanks.org • Reduces funding by $614,000 in 20022003 • Reduces funding by Health and Human Services Page HHS 22 Department of Aging 4170-10 Nutrition $908,000 Analysis of the impact of We are interested in hearing from this reduction pending. organizations with more information and action steps on this proposal. $2,946,000 in 2003-4 Page 2 of 5 Item Health care cuts Governor’s Proposal • Eliminating 8 medical Reference Hit Health and Human Services P. 49 Department of Health 4260-20 Health Care Services benefits (includ ing Medi-Cal is adult dental services) California's version • Reinstating quarterly of Medicaid. reporting It pays the cost of medical care for low- • Rescinding the recent expansion of Medicaid income persons such (1931 b) by reducing as children, the the eligibility of adults elderly, disabled, and in working families those receiving public nd assistance and others • Eliminates 2 year of transitional Medi-CAL with limited resources and high medical bills. Elimination of Stage 3 Child Care Stage -3 child care provides continued assistance to former CalWORKS recipients to help them access and maintain employment. Eliminates stage-3 child care effective April 1, 2003 Impact Amount Squeeze Setback Medi-CAL spending would be reduced by $1.5 billion. Concern An estimated 209,000 fewer people would receive Medi-CAL under this proposal. With lost benefits and/or benefits options, recipients would have to pay out-of-pocket for medical services, squeezing out their already limited resources for food. For more info and action Visit the Medi-CAL Policy Institute’s website at http://www.medi-cal.org View an analysis of the budget proposals by the California Health Care Foundation at http://www.chcf.org/ Department of Education P.6 The proposal eliminates $191 million in child care funds in 2003-4. Over 29,000 families including 55,000 children would lose child care with the elimination of stage 3. Without these resources for child care families will be forced to use limited resource for care, squeezing out their already limited resources for food. Visit the Child Care Law Center’s Website at http://www.childcarelaw.org/ and view the Center’s initial response to the Governor’s proposal. 6110-30.10 Special programs Page 3 of 5 Item Cut to Child Nutrition Start-up Funding Provides grants to schools with 20% or more low-income students to start or expand school breakfast programs Governor’s Proposal As part of an across the board 3.66% reduction in education items funded by Proposition 98, start- up funds would be reduced from $1 million to $891,000 (2002-3) “Nutrition” programs were spared from an additional 7.46% reduction faced by other Proposition 98 programs in 2003-4 As part of an across the board 3.66% reduction in education items funded by Proposition 98, Child nutrition funding would be reduced from $70.963 million to $69.009 million in 2002-3. “Nutrition” programs were spared from an additional 7.46% reduction faced by other Proposition 98 programs in 2003-4 Reference Hit Department of Education Page. E 6 Child Nutrition 6110-30.20 Impact Amount Squeeze Setback $109,000 in 2002-03 Concern Too many schools in California do not serve breakfast. Reducing start-up funding sets back effort to ensure that kids start the day fed and ready to learn For more info and action California Food Policy Advocates www.cfpa.net will provide updates on this proposal. Since the cut comes as part of a sweeping across the board reduction, this will be an especially challenging cut to fight. Cut to State Meal Reimbursement California supplements federal school meals with a state meal reimbursement. Department of Education Page E 6 6110-30.20 Child Nutrition $1.9 million in 2002-3 Even before the acrossthe-board cut, California’s contribution to the cost of school meals had fallen dramatically behind the consumer price index. California Food Policy Advocates www.cfpa.net will provide updates on this proposal. Since the cut comes as part of a sweeping across the board reduction. This will be an especially challenging cut to fight. Page 4 of 5 Item Housing Governor’s Proposal Reference Hit Impact Amount Squeeze Setback Concern For more info and action Analysis pending Page 5 of 5