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Category: Financial Security

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Western Center Roundup – July 2022

A Summer of Advocacy: Protecting Tenants & Securing Budget Wins


Judge orders CA HCD to stop denying Emergency Rental Assistance until further review

Last month, we told you about our second lawsuit against California’s Department of Housing and Community Development (HCD) on behalf of tenant groups over the lack of transparency and due process for applicants to the state’s COVID-19 Emergency Rental Assistance Program (ERAP). This month brought good news for California tenants in need of assistance in the form of a court injunction ordering HCD to stop denials for rental assistance applications until the court can determine if HCD’s process meets constitutional due process standards.

In the meantime, HCD can continue to approve applications to get assistance to those who need it, but they cannot deny pending applications. Tenants with pending ERAP applications or applications the court decision might make eligible for appeal should continue to contact HCD and fight eviction attempts. We will keep you posted as the process continues, but for now, we are celebrating with a sigh of relief.


Protecting Californians from housing price-gouging after disaster 

The Sacramento team is gearing up for the end of the legislative session in August, which includes pushing for the passage of this year’s Western Center sponsored bills as well as making sure harmful bills don’t pass. Western Center housing policy advocate Tina Rosales has her eye on a problematic bill, SB 1133, that would undo decades of price-gouging protections during disasters and green light landlords who would capitalize on emergencies by hiking rents.

Tina wrote a blog post outlining the spate of problems with the bill and calls on readers to help stop price gouging after disaster by contacting state legislators to urge their NO vote on SB 1133.


California Assembly Holds Inaugural Select Committee on Poverty & Economic Inclusion Hearing  

Western Center and community groups were honored to join conveners Assemblymember Isaac Bryan and EPIC (Ending Poverty in California) for a powerful event centered on shaping California’s roadmap to ending poverty. Western Center’s Director of Policy, Mike Herald provided committee testimony addressing the high costs of being poor, tackling the State’s burdensome CalWORKs requirements and unjust interception of child support that should be benefitting low-income families on CalWORKs. You can read more from EPIC’s Executive Director, Former Stockton Mayor Michael Tubbs on the organizing and policy work to secure this year’s historic antipoverty investments in the State budget and watch a video of the hearing and rally.


Save the Date: 8/15 at 12PM Meet the Advocates Webinar 

Join us for a free webinar focused on Senate Bill 972 and the advocacy efforts to support California’s street food vendors by removing barriers to accessing food vending permits. Community organizers and policy advocates will lead a discussion on food justice, highlighting street vendors’ role in expanding access to healthy food in California’s food deserts and beyond. REGISTER HERE.


Final 2022-23 California Budget 

Finally, in case you missed it, we published Western Center’s overview of the final 2022-23 California Budget at the tail end of June. You can read it here!


 

Up-to-date COVID-19 information

OVERVIEW

  • July emergency allotments for CalFresh food benefits will be issued August 14 (CalSAWS) and August 21 (CalWIN). June allotments issued July 17th (CalSAWS) and July 24th (CalWIN).
  • COVID-19 vaccines are free. Click here for more information.
  • Rapid COVID tests are also free, and can be shipped to you. Click here to order
  • Diagnostic testing for COVID-19 is covered at no cost for all Californians.
  • California’s eviction moratorium has ended, but you should still apply for rent relief if you need it! If you receive an eviction notice, do not ignore it. Seek local legal help right away.
  • California’s COVID-19 Rent Relief program can be accessed here, or call 833-430-2122.
  • Federal Child Tax Credit payments are not considered income for any family, and will not change receipt of public benefits.

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Food and Financial Security

  • Federal Child Tax Credit payments are not considered income for any family, and will not change receipt of public benefits, including unemployment insurance, Medicaid, SNAP, SSI, SSDI, TANF, WIC, Section 8, or Public Housing. Find out more about California’s Golden State Stimulus payments — if you qualify, and how to get it. También en español.
  • Restaurant delivery service is available for older Californians. Information and sign-up details for interested participants and restaurants are available here.
  • California households receiving SNAP food stamp benefits (CalFresh) can now purchase groceries online through a USDA pilot program.
  • Here is a Distance Learning Student Resource Guide from the California Department of Social Services. The guide includes information on free or low-cost internet, English language learning, adult education and workforce skills, video conferencing resources, and more.

Health Care

  • Keep your Medi-Cal contact information current. Make sure your county has your current address, phone number, and email address – especially if you moved since 2020. Later this year, counties will start contacting people to help them renew their Medi-Cal. If they cannot contact you, your Medi-Cal may end so you want to make sure they have your current information. Find your local county at this link.
  • COVID-19 vaccines are free. Click here for more information. All health plans must cover vaccine administration for free, and Medi-Cal covers vaccine administration for free.
  • Diagnostic testing for COVID-19 is covered at no cost for all Californians. You will need to go to a state testing site, one run by your county, or get a test at a medical provider that can enroll you in a special Medi-Cal program for people without insurance. You can contact your county public health departmentlocal clinic, and medical provider to receive information about your options for free testing.
  • There is a conflict between the California regulation governing health plans for COVID-19 diagnostic testing and federal testing requirements under the Families First Coronavirus Response Act and the CARES Act. This conflict in current law might result in a health plan billing you for testing. If this happens and you want assistance with reviewing the bill, please contact Helen Tran at htran[at]wclp.org or (213) 235-2638.
  • Everyone is encouraged to seek care if they are sick, regardless of income or immigration status. For more information about your right to health care, visit the Health Consumer Alliance’s COVID-19 information site.

Housing

  • Here is Western Center’s Know Your Rights toolkit for California tenants. Inquilinos de California: Conozca Sus Derechos.
  • California’s COVID-19 Rent Relief program helps eligible renters and landlords with unpaid/future rent and utility payments due to COVID-19, regardless of immigration status. Get info, check eligibility, and apply here, or call 833-430-2122.
  • The fact sheet below explains the current protections and financial assistance available to California renters and landlords. Versions are also available in SpanishChineseRussian, and Vietnamese.

(Click image below to access PDF – Español aqui – Tiếng việt ở đây – Русский здесь – 这里的中国人)

  • The Eviction Laws Database captures state, territorial, and local laws covering the eviction process — from pre-filing to post-judgment, as of January 1, 2021. The database was launched by the Legal Services Corporation (LSC) in partnership with the Center for Public Health Law Research, and consists of two datasets:
    • State/Territory Dataset – covers eviction laws, regulations, and court rules that were in effect as of January 1, 2021 in all 50 U.S. states, the District of Columbia, and eight U.S. territories
    • Local Dataset – covers eviction laws, including those at the county and local level, in 30 local jurisdictions in effect as of January 1, 2021

Additional Resources

 

 

 

 

Western Center’s Overview of the Final 2022-2023 California State Budget

The governor and legislature have reached an agreement on the 2022-23 state budget, which includes a historic $100 billion budget surplus. Amid substantial inflation and continued economic fallout from the pandemic, the reason for the massive surplus must be named. California has 189 billionaires and counting, and substantially more extremely high-income households that do not have the same economic burdens as the 1 in 3 Californians living near or below the poverty line. Only fundamental reforms, including for seemingly untouchable issues like discriminatory tax laws, can address the significant disparities in our state. One-time investments targeting people with low incomes during flush budget years are good, but ongoing, dedicated investments are the only way to make the state better.

Despite concerns that surplus revenue would make it difficult to fund General Fund programs, the budget deal includes substantial General Fund investments. The budget also provides tax rebates to millions of Californians, with the majority going to Californians with incomes below $75,000. Even with that spending and many other investments, the state will have a $37 billion reserve.

ACCESS TO JUSTICE/ FINES & FEES

Civil Assessments – The budget substantially reforms court practices that result in tens of millions of dollars in penalties imposed on people who fail to pay traffic and criminal court fines on time or who fail to appear in court. The current $300 civil assessment is being reduced to $100. The budget agreement also discharges civil assessment debt that accrued prior to the change in law. This means tens of thousands of people will no longer have to make payments on that debt or be harassed by bill collectors. The budget also shifts all future civil assessment revenue to the state General Fund rather than to the courts. The past practice led to lawsuits alleging that judges are incentivized to impose the maximum assessment to increase court revenue. The civil assessment language will be subject to completion in August via budget trailer bill.

Tax Intercepts – The budget includes a change to the longstanding practice by the state of intercepting Earned Income Tax Credits (EITC) and Young Child Tax Credits (YCTC) for unpaid debts. Going forward, the state’s Franchise Tax Board will no longer intercept such payments except in cases of child support or restitution.

FINANCIAL SECURITY/ FOOD ACCESS

CalWORKs – The CalWORKs budget provides a 21 percent increase in CalWORKs grants, the largest since the program began in 1998. It eliminates deep poverty for CalWORKs households of families of four or more. Deep poverty includes households with incomes below 50 percent of the Federal Poverty Level by family size. For smaller families that get tax rebates, their income will also be above the deep poverty threshold. The increase will begin on October 1, 2022 for the next two budgets, but must be renewed in 2024 when an additional grant increase will also be under consideration. Below is an estimated chart of the grants starting in October.

Child Support Pass Through – The budget includes a major change in child support policy by allowing families that receive a child support payment to receive all of it and not have it re-directed to the state and federal government to reimburse the cost for public benefits. This will begin in 2025. Currently, a CalWORKs family only gets child support for the first $100 for one child and $200 for two or more children. The governor proposed to pass through all child support to former CalWORKs households in the January budget proposal, and the legislature succeeded in expanding that into a full pass through of all child support, making California the second state in the country to do so. It is estimated that this will result in $430 million in payments going directly to families.

Food for All – The budget includes an additional $35.2 million, increasing the total to $113.4 million to expand the California Food Assistance Program (CFAP) to all Californians 55 years of age or older, regardless of immigration status. California will become the first state to provide food assistance to ensure all residents 55+ can access food. We will continue to work with our partners, the governor, and the legislature in future budgets to ensure all Californians have access to food.

SSI/SSP – The budget includes another increase for the state SSP grant of approximately $37/month. This will begin in January 2023. When combined with the anticipated 8.6 percent increase in the federal grant, the total grant comes to approximately $1,149, an increase of $107/month. While this grant increase is substantial, the grant is still below the federal poverty level for one person at approximately 98 percent.

Tax Rebates – The budget provides $9.5 billion in tax rebates. For families with incomes below $75,000 and who file taxes, a single person will get $350, a two-person household will get $700, and households of three or more will receive $1,050. People using ITIN tax filer status will be eligible but people receiving SSI will not be eligible. Unlike the proposal by the governor to distribute tax rebates to registered car owners via the DMV, the agreement instead utilizes the Franchise Tax Board to distribute payments. Currently, it is projected payments should arrive by October. These funds will benefit families on CalWORKs, CalFresh, and Medi-Cal if they filed tax returns.

Universal School Meals – Building upon the state’s historic investment in providing school meals for all students in California, this year’s budget provides 700 million in additional dollars to support school meals for all, with a focus on best practices and kitchen infrastructure. This funding will contribute to California students getting access to healthier options for school meals.

HEALTH CARE

Medi-Cal Expansion – The budget agreement includes notable health care investments including expansion of Medi-Cal to all adults regardless of immigration status (Health4All), with an implementation date ‘no later’ than January 1, 2024. It’s estimated that the expansion will result in roughly 700,000+ people becoming newly eligible for full-scope Medi-Cal at ongoing cost of $2.3 billion.

Medi-Cal Reform – The budget also reforms Medi-Cal share-of-cost so elders and people with disabilities can afford necessary Medi-Cal services and provides continuous Medi-Cal coverage for children up to age five. Both reforms have a delayed implementation date of January 1, 2025 and are subject to a budget appropriation at that time. The budget also zeroes out Medi-Cal premiums, expands Medi-Cal coverage of custom crowns for back teeth, and increases the Medi-Cal doula reimbursement.

Additionally, the budget provides navigator funding, Covered CA state premium subsidy funding, and establishes the Office of Health Care Affordability. More details of this budget’s health care investments can be found at Western Center’s updated 2022 Health Budget Scorecard.

HOUSING

As California faces dwindling affordable housing stock, skyrocketing rent increases, and as thousands of Californians wait for promised rent relief via the Emergency Rental Assistance Program (ERAP), state leaders mostly funded existing programs in this budget and failed to make housing investments at the scale needed to tackle the housing crisis.

Eviction Prevention – Billions of dollars in emergency rental assistance have been requested, but the legislature capped assistance previously promised in SB 115 at $1.95 billion, while increasing application denials for unclear reasons. As such, this budget provides $30 million in increased funding for legal aid eviction defense to represent the thousands of tenants who will likely face eviction due to the state’s inability to properly manage ERAP.

Homelessness – This budget will result in more displacement of people experiencing homelessness with increased funding for encampment sweeps: $300 million for 2022-2023 and $400 million for 2023-24. There are no meaningful investments in permanent housing for our unhoused neighbors. This budget also does not include investments for AB 1816 (Bryan) to go toward workforce development and permanent supportive housing for people who were recently incarcerated and experiencing or at risk of homelessness; rather, this budget funds temporary programs that often contribute to a revolving door of recidivism. However, this budget does finally invest in a program created nearly eight years ago for veterans and their families experiencing homelessness by allocating $50 million to Proposition 41 (2014).

Affordable Housing – This budget makes a $2 billion multiyear investment in affordable housing. The budget allocates $150 million over two years to preserve California’s existing highly prized and disappearing affordable housing stock. Since many Californians rely on mobile and manufactured homes for affordable housing, the budget invests $100 million over two years for mobile and manufactured homes. In an attempt to add to California’s affordable housing stock, the budget allocates $250 million for the Housing Accelerator Program to build affordable housing where builders can’t access tax credits, as well as $325 million over two years for the Multifamily Housing Program, two critical programs that deserve a larger investment. The budget allocates $425 million over two years for the Infill infrastructure grant program for capital improvement projects and $410 million over two years for Adaptive Reuse to convert buildings into housing, including a $10 million appropriation of existing funding. There is also an additional investment of $50 million for ADU financing on existing lots. While greatly needed, this funding should come with more requirements for the creation of affordable units for households with low and extremely low incomes.

Homeownership – Since homeownership is nearly impossible for many first-time homebuyers in California, particularly for non-white people whose generational wealth was stripped due to intentionally racist housing policies, this budgets makes a commitment to assist first-time homebuyers by establishing the California Dream for All program, providing $500 million to assist first-time homebuyers with lower down payments, more than 1/3 reduction in monthly mortgage payments, and $350 million over two years for the CalHome program.

Housing for Farmworkers – This budget invests in farmworkers, whose hard labor keeps many of us fed, by appropriating $50 million for the Joe Serna Jr. Farmworker Housing Program. The program is intended to construct and rehabilitate housing for farm workers who often live in hazardous and uninhabitable housing conditions.

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For a PDF of this analysis, click here. For questions contact:

Access to Justice & Financial Security

Health Care

Housing & Homelessness

 

 

A third of Californians live in or near poverty. Advocates say the budget must do more

“Mike Herald, director of policy advocacy for the Western Center on Law and Poverty, said CalWORKs was originally based in the belief that if the government didn’t force people to work, they wouldn’t know “what was good for them.” The program has been reformed over the years, Herald said, but tens of thousands of families are still sanctioned from the system due to the work requirement.”

Read More

PRESS RELEASE: LA County Agrees to Stop Delaying Food Assistance to Neediest Applicants

FOR IMMEDIATE RELEASE

Court injunction will require county to process all emergency CalFresh applications in three days

Los Angeles, CA – In a major victory in the fight against hunger, the Los Angeles County Board of Supervisors voted today to enter into a permanent injunction for a case filed in Los Angeles Superior Court, Hunger Action Los Angeles, et al. v. County of Los Angeles, et al., requiring the county to process and approve emergency CalFresh applications in a timely manner. The injunction will impact thousands of vulnerable families experiencing dangerous food insecurity in Los Angeles County each month.

“We wouldn’t tolerate it if the fire department took a day to respond to a fire, and we shouldn’t waste time when people are hungry,” said Frank Tamborello of Hunger Action Los Angeles, one of the organizational plaintiffs in the lawsuit. “The county has the resources, provided by the federal government, to respond immediately.”

The State of California requires counties to expedite food assistance applications for people with extremely low incomes who are homeless or whose housing costs exceed their resources or monthly income. But for more than a year, LA County consistently failed to process emergency applications for CalFresh—formerly known as food stamps—in under three days as required by law.

“We are heartened the county, in entering this agreement, acknowledges that hunger cannot wait,” said Lena Silver, an attorney with Neighborhood Legal Services of Los Angeles County (NLSLA). “These are applications for emergency assistance, and the county must treat them with an appropriate level of urgency.”

Two organizations fighting hunger in Los Angeles—Hunger Action Los Angeles and the Los Angeles Community Action Network—along with an applicant affected by the delays, sued the county in November, demanding that it comply with its obligation to grant expedited access to critical food benefits.

“The county’s blatant disregard for people living in extreme poverty, who tend to be Black and Brown, was exacerbating racial inequities in disadvantaged communities like Skid Row and South Los Angeles,” said Todd Cunningham of the Los Angeles Community Action Network. “We sued to force the county to follow the law.”

Represented by NLSLA, Western Center on Law and Poverty, Public Interest Law Project, and pro bono counsel from Sidley Austin LLP, the groups presented the court with data showing the county had violated both state and federal law for months leading up to the lawsuit. In one month alone, the county failed to meet the state’s three-day timeline in 53 percent of eligible applications, leaving 7,600 individuals and families who qualify for expedited benefits without access to CalFresh. Some applicants had to wait more than a month to receive emergency food assistance.

“Following the filing of the lawsuit, the county’s processing of applications has improved – but not nearly enough,” said Lauren Hansen of Public Interest Law Project. “Each and every one of these emergency applications must be processed immediately.”

Peter, a CalFresh applicant named in the lawsuit, was 17 years old when his father suffered a severe stroke that left him partially paralyzed and unable to continue his work as a day laborer. Peter should have received access to CalFresh in three days. Instead, the family heard nothing from the county for 17 days, at which time someone called and left a message. When Peter’s father tried to return the call, he got a “high call-volume” message and was disconnected. Then he received a letter stating Peter’s application had been denied.

A November 2021 report from the county Department of Public Health warned of the “devastating consequences” of food insecurity, which significantly increases the risk of type 2 diabetes, hypertension, obesity, and psychological distress or depression. In childhood, food insecurity is associated with delayed development, diminished academic performance, anxiety and depression, and early-onset obesity.

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Hunger Action LA (HALA) works to end hunger and promote healthy eating through advocacy, direct service, and organizing.

The Los Angeles Community Action Network (LA CAN) consists of extremely low-income and homeless people, primarily those living in Downtown LA and South Central LA. LA CAN recruits organizational members and builds indigenous leadership within this constituency to promote human rights and address multiple forms of oppression faced by extremely low-income, predominately African-American and Latino, residents. LA CAN focuses on issues related to civil rights and preventing the criminalization of poverty, women’s rights, the human right to housing, and healthy food access. LA CAN also has projects focused on economic development, civic participation and voter engagement, and community media.

Neighborhood Legal Services of Los Angeles County (NLSLA) is a steadfast advocate for individuals, families, and communities throughout Los Angeles County. Each year NLSLA provides free assistance to more than 100,000 people through innovative projects that address the most critical needs of people living in poverty. Through a combination of individual representation, high impact litigation and public policy advocacy, NLSLA combats the immediate and long-lasting effects of poverty and expands access to health, opportunity, and justice in Los Angeles’ diverse neighborhoods.

Public Interest Law Project (PILP) advances justice for low-income people and communities by building the capacity of legal services organizations through impact litigation, trainings, and publications, and by advocating for low-income community groups and individuals.

Sidley Austin LLP is a premier law firm with a practice highly attuned to the ever-changing international landscape. The firm has built a reputation for being an adviser for global business, with more than 2,000 lawyers worldwide. Sidley maintains a commitment to providing quality legal services and to offering advice in litigation, transactional, and regulatory matters spanning virtually every area of law. The firm’s lawyers have wide-reaching legal backgrounds and are dedicated to teamwork, collaboration, and superior client service.

Western Center on Law & Poverty fights in courts, cities, counties, and in the Capitol to secure housing, health care and a strong safety net for Californians with low incomes, through the lens of economic and racial justice.

 

 

 

Western Center’s Analysis of Governor Newsom’s 2022-23 May Budget Revision

The Newsom Administration released its 2022-23 May Revise budget, which includes a massive three year budget surplus of over $90 billion. While the budget includes many noteworthy proposals, overall it fails to provide robust help to those who need it most. Rather than target the surplus on increased tax credits and emergency relief for people with low incomes, the budget proposal provides more than $11 billion in tax credits to car owners, including households with incomes up to $250,000.

Paradoxically, the state has so much extra revenue that General Fund spending is limited since the increased revenue exceeds the State Appropriations Limit (aka the Gann limit). As such, the May Revise proposes large infrastructure spending that is not counted towards the Gann limit. While those proposals are not without merit, the Revise fails on fundamental anti-poverty measures, like backfilling the lost federal child tax credits proven to reduce child poverty, leaving hundreds of thousands of children at risk of unnecessarily falling back into poverty. The Revise also fails to fully eliminate civil assessment fees that disproportionately punish people experiencing poverty who cannot afford to pay a traffic ticket or take time to appear in court.

Care Court

The governor proposes $65 million to fund a new court process called Care Court, which would force unhoused individuals with schizophrenia and other psychotic disorders into a court ordered treatment plan. Western Center has been tracking the proposal and vocal about our opposition since the governor revealed it in March, as it touches on each of our issue areas.

The Revise provides $39 million to the Judicial Council to run the court process, $10 million to finance a supporter program within the state Department of Aging, and $15 million to counties for training and technical assistance.

With its lack of necessary interventions, like a clear budget strategy and mechanisms for creating housing, we believe the framework of the proposal is fundamentally flawed. If implemented, it is likely CARE Court will lead to unnecessary institutionalization of people with disabilities and unhoused people and likely create a chilling effect that will prevent people from seeking services for fear of being institutionalized. Additionally, by involving the court system the proposal will perpetuate institutionalized racism and exacerbate existing disparities in health care delivery since Black, Indigenous and other people of color are significantly more likely to be diagnosed with psychotic disorders than white people. All evidence shows that adequately-resourced, intensive, voluntary outpatient treatment – not court-ordered treatment – is most effective for treating the population CARE Court seeks to serve.

HOUSING & HOMELESSNESS

The governor’s May Revise proposes a $2.5 billion dollar increase for housing and homelessness programs from last year for multi-year investments to build housing and behavioral health housing. The Revise includes an additional $150 million to fund Homekey projects, $50 million to build interim housing and $500 million to accelerate affordable housing production and conversions of retail space in downtown corridors.

Even with the economic fallout of the pandemic raging on, the proposal does not include additional funding for tenants at the brink of eviction for their inability to pay rent. To confuse matters, the governor announced a $2.7 billion budget allocation for rental assistance, but it is not a new commitment. Rather, it’s part of the commitment the legislature made in February via Senate Bill 115, designed to ensure full coverage for rental assistance applications submitted before March 31. However, because of the burdensome application process, tenants accrue debt while they wait for approval and still face the threat of eviction for the months their application was being processed.

The governor’s proposal fails to comply with the legal requirement for the state to fully fund rental assistance applications submitted before March 31 by paying those tenants 100% of their accrued debt at the time they are approved. To keep tenants housed and fulfill the promise of the rental assistance program, the massive budget surplus must be used to fully fund tenants’ rental debt and ensure that vulnerable Californians remain housed.

Western Center will continue to advocate for other sponsored proposals missing in the May Revise, including $500 million in the Community Anti-Displacement and Preservation Program (CAPP) to acquire unsubsidized affordable housing and make them permanently affordable, $200 million in the Reentry Housing and Workforce Development Program to provide stable housing and supportive services to formerly incarcerated people as outlined in AB 1816 (Bryan), and $150 million for eviction defense funding and community education and outreach.

PUBLIC BENEFITS & ACCESS TO JUSTICE

CalWORKs

The May Revise proposes an 11.1 percent increase in CalWORKs, the largest one-year increase in the grant levels in recent memory. The funding for this comes from the Child Poverty subaccount which has seen a significant increase along with the overall budget. Even with this increase, CalWORKs grants for most families are still not out above deep poverty (50 percent of the federal poverty level). That is because most families have an excluded adult. We are calling on the legislature to fulfill the commitment made four years ago to fund CalWORKs grants at the assistance unit plus one level. See the chart below for what the gap will remain at:

Child Support Pass Through

The May Revise makes no change in the administration’s proposal to pass through all child support to former CalWORKs families. While advocates support the proposal, we seek to have it extended to current CalWORKs cases where families have lower incomes and could use the child support assistance immediately.

Food Assistance

The May Revise makes no change to the governor’s January proposal seeking to expand the California Food Assistance Program to Californians regardless of immigration status for those 55 years of age and older. Western Center stands with our partners advocating for the expansion of the program to include Californians of all ages. Many immigrant families were excluded from pandemic relief and continue to be left behind as we rebuild the state’s safety nets.

SSI/SSP

The governor’s May Revise budget makes no proposal to increase grants for blind, aged and disabled Californians. There is a provisional agreement to restore the remainder of the 2009 SSP grant cuts beginning in January 2024 but the governor did not include CA4SSI’s request to accelerate the grant increase to January 2023. By delaying the second restoration, the value of the grant will decline when compared to the federal poverty level.

HEALTH CARE

The governor’s May Revision maintains the expansions proposed in the January proposal, including expanding Medi-Cal to all adults regardless of immigration status (Health4All), zeroing out premiums and copayments for Medi-Cal, and expanding Medi-Cal coverage of custom crowns for back teeth. In addition, the May Revision makes new investments to increase the Medi-Cal doula reimbursement rate, provides navigator funding, and permanently extends presumptive eligibility for older adults and individuals with disabilities. Unfortunately, the May Revision does not update the Medi-Cal share of cost, fully fund SB 65, or implement Health4All sooner than January 2024.

Below is summary of health proposals in the May Revision, which still needs to be negotiated with the legislature by the budget deadline of June 15th.

Medi-Cal

  • Increased Doula Reimbursement Rate: The May Revision proposes to increase the average doula service reimbursement rate from $450 to $1,094, which includes antepartum visits, delivery, and postpartum visits. The implementation date for the doula benefit will be shifted from July 2022 to January 2023 resulting in $974,000 total funds ($377,000 General Fund) in 2022-23 for this benefit.
  • $60M One-time Navigator Funding: The May Revision proposes to add $60 million total funds ($30 million General Fund) to the Health Enrollment Navigators available over four years through fiscal year 2025-26 to assist in outreach, application assistance, enrollment, and retention for difficult-to-reach populations, including the implementation of Health4All.
  • Presumptive Eligibility for Individuals 65 +, Blind, or Disabled: The May Revision includes $73 million total funds ($37 million General Fund) to continue Medi-Cal presumptive eligibility for older adults and individuals who are blind or disabled. Already permanent for other populations, this gives eligible older adults and individuals who are blind or disabled instant Medi-Cal eligibility for a limited time. Advocates are working to ensure this means two Presumptive Eligibility periods per year, as is currently available during COVID.
  • Equity and Practice Transformation Payments: To close health equity gaps in preventative, maternity, and behavioral health care measures, and to address gaps in care, the May Revision proposes an additional $300 million ($150 million General Fund) to the $400 million proposed in January for a combined $700 million in total funds.
  • Transitions to Managed Care: Under CalAIM, various populations are shifting to mandatory managed care effective January 2022 and January 2023. The May Revision proposes to delay the transition of ICF/DDs and Subacute Care Facilities into managed care from January 1, 2023 to July 1, 2023 to prepare for the transition. The administration also identified additional individuals subject to mandatory managed care that were assumed to already be included and will provide details on specific populations once determined.
  • LA Care Sanctions: The May Revision proposes budget bill language to use monetary sanctions collected from LA Care in the budget year to award grants to qualifying non-profit legal aid programs and organizations that serve Medi-Cal managed care enrollees in Los Angeles County or other impacted counties, for purposes of improving access to care in the Medi-Cal program.
  • Medi-Cal Media and Outreach Campaign: In an April budget change proposal prior to the May Revision, the Department of Health Care Services (DHCS) requested $25 million ($12.5 million General Fund) for a media and outreach campaign to encourage members to update their contact information with their counties, and to educate members of potential Medi-Cal termination if requested information is not submitted.
  • Additional AB 97 Provider Payment Reductions Elimination: In addition to elimination of AB 97 payment reductions in the January proposal, the May Revision proposes to include doula services, community health worker services, asthma prevention services, health care services delivered via remote patient monitoring, dyadic services, Medication Therapy Management, and continuous glucose monitoring system, supplies and accessories.

Other Health Proposals

  • Covered California: The May Revision proposes $304 million to extend California’s premium subsidy program for middle income Californians with incomes between 400 and 600% FPL. This represents a fraction of potential loss if federal relief is not extended.
  • Children and Youth Behavioral Health Initiative Grants: The May Revision includes $85 million General Fund for Children and Youth Behavioral Health Initiative (CYBHI) grants to schools, cities, counties, tribes, and/or community-based organizations. This includes grants to wellness and mindfulness programs as well as parent support and training programs.
  • Reproductive Health: The May Revision includes $57 million one-time General Fund to support safe and accessible reproductive health care, for a total of $125 million including investments in the January budget. Specifically, $40 million to DHCS for uncompensated reproductive health care, $15 million for the California Reproductive Justice and Freedom Fund at the Department of Public Health (DPH); $1 million to DPH for the Comprehensive Reproductive Rights Website, and $1 million to DPH for research on unmet needs for reproductive health care.

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PDF of this document available here.

For questions contact:

 

CA must stop forcing elders & people with disabilities to pay more for health care than everyone else

$600 a month. Imagine living on that in an expensive state like California. That’s exactly what the state requires older adults and people with disabilities to do in exchange for health care through Medi-Cal. This year, the California Legislature and Governor Newsom must change that. Health care is one of the most expensive basic needs in our society — any commitment by state leaders to address inequality must include health care.

AB 1900 by Assembly member Arambula and co-author Assembly member Wood, which Western Center is co-sponsoring with Justice in Aging, Bet Tzedek Legal Services, Disability Rights California, Senior & Disability Action, and California Advocates for Nursing Home Reform, will address the problem by increasing the amount of monthly income older adults and people with disabilities can keep for basic needs.

Currently, elders and people with disabilities with incomes below $1,564 a month qualify for free Medi-Cal. But low-income older adults and people with disabilities who are just a $1 over the limit are required to pay over $900 of their monthly income as a share-of-cost.

The share-of-cost works like a health insurance deductible, but resets on a monthly basis. This Medi-Cal program establishes a monthly amount that older adults and people with disabilities are allowed to keep to meet their basic needs, called the maintenance need income level. The rest of their income must go toward health care expenses. The maintenance need income level of $600 hasn’t been changed since 1989, even though it is nearly impossible for anyone in California to live on $600 a month now.

By increasing the amount of monthly income older adults and people with disabilities can keep for their basic needs — up to 138% of the federal poverty level (the Medi-Cal income level for nearly all adults), AB 1900 ensures that older adults and people with disabilities don’t have to wait another 30+ years for an adjustment since the federal poverty level is updated every year.

Most people with low incomes receive their health care for free or pay up to 8.5% of their income on health care coverage. It is unfair that older adults and people with disabilities are the only population forced to pay over 60% of their income to obtain essential health care. The current policy forces aging adults, people with disabilities and their families to make impossible choices between health care, paying rent, and affording food. When people cannot access needed Medi-Cal services they often end up hospitalized or institutionalized, or forced to rely on already stretched family members to provide unpaid care.

Ten other states have higher maintenance need income levels than California. It’s time to ditch the deductible and lead the nation in health care affordability. State leaders must fund AB 1900 in this year’s state budget.

 

 

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