SACRAMENTO, CA (CDCAN – LAST UPDATED 06/20/2104 – 09:50 AM) – Governor Edmind G. “Jerry” Brown, Jr. signed, as expected, SB 852, the main budget bill containing the 2014-2015 State Budget, in San Diego this morning, making only a few line item vetoes but largely keeping the funding intact in the plan as passed last Sunday by the Legislature.

The Governor made only two line item vetoes in health and human services, and no real line item vetoes in education (except for deleting a technical provision) and no line item vetoes in higher education:  Funding for Early Start eligibility restoration, funding for overtime for In-Home Supportive Services (IHSS) workers,additional funding for Supported Living Services, In-Home Respite and Personal Attendant Services for the impact of the federal overtime provisions effective in January, as well as funding for minimum wage impact for many regional center providers were all maintained in the budget.   None of the Governor’s line item vetoes in health and human services was to funding for actual direct services, but rather for studies  for community-based regional center funded services – that advocates pushed hard for – and also for implementation steps regarding federal mental health parity.

REGIONAL CENTERS: Governor eliminated the appropriation that would require the Department of Developmental Services to spend funds for a study with stakeholders to review and recommend an update of the core staffing formula for the 21 non-profit regional centers, and rate setting methodologies for community-based services and supports. The Governor stated that he vetoed the additional expenditure approved by the Legislature  because it would “…create a significant workload and cost pressures within a restrictive timeframe. Instead I am directing the Health and Human Services Agency to convene a task force to review both of these and other community issues that were identified in the Plan for the Future of the Developmental Centers.”

DEPARTMENT OF MANAGED HEALTH CARE – Governor reduced additional spending of $4,204,000 for the Department of Managed Health Care by $2,102,000, to help the department in reviewing health plans’ compliance with the federal law on mental health parity that is “consistent” with the department’s implementation plan.  The Governor stated that “In the coming year, my Administration, through the Department of Managed Health Care, will review health plan filings, and identify any areas of concern and any additional resources needed to address them.  The Budget also includes an augmentation [increase] that was included in the May Revision for clinical and actuarial contracts that will further help with initial implementation.”
DEPARTMENT OF INSURANCE – Governor reduced item within consumer protection from $749,000 to $374,000  augmentation [or increase] for implementation of the federal mental health parity act.  The Governor stated that “the augmentation that remains in the Budget will allow the Department to monitor health insurers’ compliance with mental health parity laws and other insurance laws.”

CDCAN will issue full report on the budget later today.
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