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News for Nonprofits, March 2011

NEWS FOR NONPROFITS connects nonprofits in the 11th Senate District of California with information and resources available from the State or other sources. Information provided is deemed relevant to the nonprofit sector and no endorsement is implied. Please feel free to forward this newsletter to other nonprofit leaders in our area. If you have questions about items in this newsletter, state legislation, or state agencies, or would like to submit an item for the next issue, please do not hesitate to contact Hema Sareen Mohan, my Education/Nonprofits Liaison, at (650) 688-6384 or .(JavaScript must be enabled to view this email address). Contents:

Budget Update
In presenting his proposed state budget a week after taking office, Governor Jerry Brown called it “a tough budget for tough times” that comes to grips with California’s financial realities. Those involved in providing social services and health care will need no persuading that the “tough budget” label is apt.

To close a budget gap of what’s now estimated at $27.6 billion over an 18 month period, Governor Brown proposed deep cuts in health care, social services and higher education, and the continuation of existing temporary taxes for five more years.

Governor Brown’s budget documents noted that general fund revenues fell 24 percent from their peak in 2007-08 to 2009-10. He expects the current budget year to end with a deficit. In addition, revenues for the budget year beginning July 1 will fall far short of expenditures, unless changes are made. Add in a $1 billion reserve, and the total amount Governor Brown needs to find is $27.6 billion.

To close the $27.6 billion gap, Brown offered a plan that is roughly half cuts and half revenues. Borrowing from special funds would cover the remainder of the shortfall. One major area of state spending that would be spared is K-12 education, but only if voters approve a five-year extension of taxes that are set to expire this year.

Since the governor introduced his budget, the Legislature has been working in special session to modify it. While some of Brown’s specific proposals have been changed in the version that is now nearing a vote in the Legislature, the overall approach remains close to Brown’s original plan.

In the budget nearing a vote in the Legislature, major spending cuts include:

  • $1.6 billion to Medi Cal
  • $1.1 billion to CalWorks, the state’s welfare to work program
  • $1 billion to the University of California and California State University
  • $500 million to the Department of Developmental Services
  • $716 million in child care services
  • $700 million to state operations and employee compensation
  • $486 million to In-Home Supportive Services

In health care, the budget finds Medi-Cal savings of $1.6 billion, achieved in part through provider rate reductions, a soft-cap on doctor visits, some new co-pays and other savings. In-Home Supportive Services also will be reduced.

The budget cuts $1.1 billion from CalWorks. Monthly grants would be reduced and lifetime eligibility would drop from five years to four except for safety net and child-only cases. The statewide caseload is expected to drop, but some children could become eligible for county general assistance if their parents are excluded from CalWorks.

On the revenue side, the major proposals for additional funds are:
  • $3.3 billion by maintaining the income tax surcharge of .25 percentage points on each bracket.
  • $2 billion by continuing a lower dependent exemption income tax credit.
  • $4.5 billion by keeping an additional 1 cent per dollar on the sales tax, for a 6 cents statewide tax.
  • $1.4 billion from maintaining the 0.5% vehicle license fee increase, which raised it to 1.15% of the value of the vehicle.
  • $1.4 billion by requiring all corporations to file under a common system, called single sales factor.
  • $900 million from eliminating the enterprise zone tax credit. The budget also proposes to eliminate city redevelopment agencies, though they must be allowed to pay off their outstanding obligations.
  • $360 million from tax enforcement and tax amnesty proposals.

The income tax, sales tax and vehicle tax proposals would require approval of voters in a statewide election.

The budget also proposes to begin a process, called realignment, of moving many services, along with the money to pay for them, to local governments. The idea is to make the delivery of services more efficient, and more tailored to local needs.

While no final decisions have been made, some of the social service programs that might be handled at the local level include:
  • Substance abuse treatment programs
  • Non-federal Child Welfare, Foster Care, and Adoptions costs
  • Adult Protective Services
  • Some mental health programs, including the Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) Program, Mental Health Managed Care (MHMC), “AB 3632” state-mandated mental health services for special education students, and existing community mental health services.

Governor Brown contends that his budget plan will not only close the existing gap, but will also establish an ongoing balance between the level of services and the available revenues. If no changes are made, annual budget deficits of $20 billion are forecast.

The Legislature has scheduled a budget vote for Thursday, March 10.

To read more about Governor Brown’s proposed budget or the Legislature’s recommendations, visit http://www.senate.ca.gov/ftp/SEN/COMMITTEE/STANDING/BFR/_home/

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Understanding the legislative calendar
As we’ve recently begun the 2011-2012 legislative season, I thought you might want a refresher on the legislative process and some of the key dates to follow on the legislative calendar.

As you know, every bill starts with an idea. That idea can come from the legislator, a group familiar with a particular policy area, or simply from an everyday person who has an everyday problem. Legislators submit that idea to attorneys, called legislative counsel, who then convert the idea into the language of a bill. The bill—SB for Senate Bill if the author is a State Senator or AB for Assembly Bill if the author is an Assemblymember—then gets assigned a number, and is referred to one or more policy committees.

The members of that policy committee(s) get to vote on the measure. If the bill is likely to impose a fiscal impact on the state, then it is referred to the Appropriations Committee. If the bill clears its policy committee(s) and, if applicable, the Appropriations Committee, it then heads to a vote on “the Floor,” which means that all the members of the house in which the bill is being heard (Senate or Assembly) will vote on the bill. If a majority of them vote in favor, the bill passes out of one house and repeats the process mentioned above in the other house.

Once the bill passes out of the second house, the bill goes back to its “house of origin” for a final vote if it was amended in the second house. If it passes this final vote or if it wasn’t amended, it heads to the Governor, who can sign it into law, veto it, or do nothing, which automatically results in the bill’s passage.

Following are some key dates on the 2011 legislative calendar:
  • January 3 - Legislature reconvened
  • January 10 - Governor submitted the state budget
  • January 21 - Last day to submit bill requests to the Office of Legislative Counsel
  • February 18 - Last day for bills to be introduced
  • May 6 - Last day for policy committees to hear and report to fiscal committees fiscal bills introduced in their house
  • May 13 - Last day for policy committees to hear and report to the Floor non-fiscal bills introduced in their house
  • May 20 - Last day for policy committees to meet prior to June 6
  • May 27 - Last day for fiscal committees to hear and report to the Floor bills introduced in their house. Last day for fiscal committees to meet prior to June 6
  • June 3 - Last day for bills to be passed out of the house of origin
  • June 6 - Committee hearings may resume
  • June 15 - Budget must be passed by midnight
  • July 8 - Last day for policy committees to meet and report bills
  • August 26 - Last day for fiscal committees to meet and report bills to the Floor
  • September 2 - Last day to amend bills on the Floor
  • September 9 - Last day for each house to pass bills
  • October 9 - Last day for Governor to sign or veto bills passed by the Legislature on or before September 9 and in the Governor’s possession after September 9

For a look at the complete legislative calendar, visit http://www.senate.ca.gov/~newsen/schedules/_CALENDAR/jointCalendar2011.pdf.

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Committee Assignments
As we begin the first year of our 2011/2012 session, I would like to give you an update about the policy committees that I chair and of which I am a member.
  • Chair, Environmental Quality Committee
  • Member, Budget Committee (Chair, Budget Subcommittee #2 on Resources, Environmental Protection, Energy and Transportation)
  • Member, Education Committee
  • Member, Energy, Utilities, and Communications Committee
  • Member, Natural Resources and Water Committee
  • Member, Transportation and Housing Committee

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Regional Announcements
  • At this time of financial stress, many eligible households still do not take part in the CalFresh Program (formerly Food Stamps), known nationally as the Supplemental Nutrition Assistance Program (SNAP).
    Of income-eligible residents, only 18% in San Mateo County and only 39% in Santa Clara County take part. (California ranks 50th among states in participation rate.) A study commissioned by Second Harvest Food Bank pointed out the most common barriers, starting with the fact that many eligible people don’t know about the program or how to apply.
    Other significant barriers include: verification documents required to prove income, deductions, and citizenship; fears among immigrants that their current or future immigration status would be impacted; low literacy among potential applicants; the stigma of receiving government assistance is compounded by California’s finger-imaging requirement; complex and changing eligibility rules; and understaffed county offices to help navigate the application process. Applications are available online at http://www.calfresh.ca.gov, a website of the California Department of Social Services.

  • CompassPoint is continuing the Next Generation Leaders of Color (NGLC) program that was recently piloted so successfully. The next development program for managers of color working in Bay Area health and human service organizations will start in May 2011. It focuses on two management areas important for success: 1) the ability to supervise, develop, inspire and influence people, and 2) developing business acumen. Visit http://www.compasspoint.org/nglc.

  • Energy Watch programs are collaborative efforts between local governments and PG&E that allow Ecology Action to offer cost-saving, energy-efficient technologies and rebates to nonprofits along with municipalities and special districts in each jurisdiction. They offer free customized surveys of lighting and refrigeration to eligible PG&E customers with suggestions for energy-cost savings, and can also provide experienced contractors to perform installation, quality-assurance inspections and help in project management. To learn about Energy Watch programs in your area, visit http://www.pge.com/energywatch/.

  • New health-care options for the hard-to-insure are now in place with California’s Pre-Existing Condition Insurance Plan (PCIP), which serves as a bridge until January 2014 when federal law will no longer allow insurance companies to deny coverage or hike fees for those with pre-existing conditions. Under SB 22, eligible applicants must have been denied insurance coverage within the past 12 months and been uninsured for at least six months. PCIP is administered by the state’s Managed Risk Medical Insurance Board. Call PCIP with questions about eligibility at (877) 428-5060 or visit http://www.pcip.ca.gov for more details.

  • The United Way has free tax preparation and free credit coaching services available: Fast, free and confidential tax prep is available from trained volunteer preparers to ensure taxpayers get the largest refund for which they are eligible. (To qualify for tax help, one’s 2010 income must be less than $49,000.) In Santa Clara County, which has 30 locations, call 2-1-1 or visit http://www.211scc.org; in San Mateo County, http://earnitkeepitsaveit.org; in Santa Cruz County, http://www.scurzccu.org/community/eitc-english.shtml. In addition, United Way Silicon Valley offers free credit coaching to individuals and families who are struggling with their credit. Participants will meet with a trained volunteer credit coach six times over a year to learn about their credit score and improve their personal credit and financial management skills. For more information, visit http://www.uwsv.org/Credit_Coaching.php.

  • The Consumer Wiki is a new self-help service developed by the California Department of Consumer Affairs (DCA) to give consumers a wealth of information about almost any consumer topic. Go to http://www.dca.ca.gov/wiki to look up answers to questions or to find the places to get such answers. The directory covers topics ranging from issues over which the DCA has jurisdiction (such as auto repair and contractors) to other areas such as landlord-tenant issues, buying or selling a home, and financial investments. It is easily searchable, and includes addresses, e-mail addresses and phone numbers to government agencies and nonprofit organizations, links to useful web sites and more. It is the identical tool used by the DCA call center staff, which handles more than a million consumer calls every year.

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Related Pages: Nonprofit Newsletter