LAO Report on State Appropriations Limit
The Legislative Analyst’s Office (LAO) released a report outlining the implications of the Governor’s budget proposal. The report titled “State Appropriations Limit Implications” examines various state revenue scenarios to predict budget outlooks into the future. In summary: without making some serious reforms to the state’s tax structure (to reduce state revenues) or seeking voter approval to modify the State Appropriation Limit (to allow for more expenditures), the Governor’s budget is unsustainable whether state revenues grow slower, faster, or as expected.
To mitigate this eventuality, the LAO offers some short- and long-term options. For short-term options, the Legislature could reject all non-SAL excluded proposals in the Governor’s proposed budget and then save those resources for future SAL requirements. The Legislature could opt to delay SAL-required payments for a two-year period, as authorized by the Constitution, but it must save those revenues to be able to pay the SAL-required payments in the future. Finally, the Legislature could change the definition of subventions to count more funding at the local level. As for longer-term fixes, the LAO suggests that the Legislature could reduce taxes on an ongoing basis to bring state revenues to the SAL, which would necessarily constrain state government spending, or the Legislature could ask voters to make reforms to the state’s appropriations limit by placing a constitutional amendment on the ballot.
The constraints imposed by the Gann Limit appear to have become inescapable for the state’s budget crafters and must be carefully considered in the coming months as the May Revision is released and final negotiations on the budget begin.
Acting Governor Kounalakis Signs Extension of Tenant Protections
In rapid fashion, the Legislature approved AB 2179 (Grayson and Wicks) to extend tenant protections for renters who have applied for the state’s rental assistance program but whose applications have yet to be processed. AB 2179 extends the protections through June 30, 2022.
Lt. Governor Eleni Kounalakis, who is the acting Governor while Governor Gavin Newsom is traveling abroad, signed the bill, marking the first time a woman signed legislation into law in California.
Beneficial Fire Strategic Plan Released
This week, the Governor’s Wildfire and Forest Resilience Task Force issued its Strategic Plan for Expanding the Use of Beneficial Fire to guide the state’s efforts in expanding the use of prescribed fire and cultural burning to build forest and community resilience in addressing forest management and wildfire mitigation. The Strategic Plan sets a target of expanding beneficial fire to 400,000 acres annually by 2025 as part of an overall goal to treat 1 million acres annually in California by 2025.
Key elements include:
- An online prescribed fire permitting system to streamline the review and approval of prescribed fire projects;
- The state’s new Prescribed Fire Claims Fund to reduce liability for private burners;
- A new statewide program to enable tribes and cultural fire practitioners to revitalize cultural burning practices;
- A prescribed fire training center to grow, train, and diversify the state’s prescribed fire workforce;
- An interagency beneficial fire tracking system;
- Undertaking pilot projects to undertake larger landscape-scale burns;
- A comprehensive review of the state’s smoke management programs to facilitate prescribed fire while protecting public health.
Children and Behavioral Health Initiative Update
The Newsom Administration recently held a webinar to share updates on Children and Behavioral Health Youth Initiative (CYBHI), which included an overview of the CYBHI, a presentation on the plans and scope of work for each workstream, and information on stakeholder engagement. Here are links to a recording and slide deck from the webinar.
The CYBHI engagement plan includes convening and engaging three groups:
Children, youth, and families, including children and youth 25 years of age and younger and their families as the key constituency of the initiative.
Cross-sector and inter-agency partners, including healthcare and education partners, subject matter experts, state, local, and federal agencies, community-based organizations, social services, legislature, philanthropy, academia, and other public and private sector partners.
Community partners on the ground and in the field, including California community members interested in children and youth behavioral health (e.g., Californians with professional and/or lived experiences).
This table summarizes planned engagement efforts in the near term and going forward.
Assembly Budget Subcommittee Hearing Focuses on CalAIM and Medi-Cal Issues
Assembly Budget Subcommittee No. 1 on health and human services met on March 28 to discuss CalAIM and Medi-Cal proposals (agenda). DHCS provided overviews of Enhanced Care Management, community supports, CalAIM behavioral health reforms, the long-term services and supports component of CalAIM, and the proposed changes to the suspension of Medi-Cal benefits when an adult is incarcerated.
DHCS reported that as of January 1, 2022, 25 counties went live with Enhanced Care Management (ECM). The next phase of ECM implementation begins July 1, 2022. Additionally, in January 2023, ECM will be expanded to long-term care, nursing home residents transitioning to communities, and the justice-involved population. In July 2023, ECM will be expanded to focus on children and youth.
As on January 1, 2022, 25 managed care plans in 47 counties started offering over 520 community supports. Approximately 40,000 people – mostly individuals transitioning from Whole Person Care – are receiving community supports. By July 2022, nearly all managed care plans in all counties will offer some level of community supports. Recall that managed care plans can choose whether they offer community supports and which of the state’s 14 identified community supports the plan will offer. Most Medi-Cal managed care plans are electing to provide five to six community supports. The most common community supports being offered are housing related services, medically tailored meals, and asthma remediation. DHCS expects the plans will continue to expand community support elections in 2023 and 2024.
Legislation to Implement the Kaiser Contract for Medi-Cal Introduced
AB 2724 was gutted and amended last week to incorporate provisions to implement the Kaiser Medi-Cal single contract language (also known as “alternate health care service plan”) proposed by the Newsom Administration in trailer bill language. The revamped measure, now authored by Assembly Member Joaquin Arambula, is in the Assembly Health Committee but has not yet been set for hearing. Although introduction of the Kaiser language into a bill suggests the contract will be discussed via the policy committee process, it remains possible that the issue could become part of budget negotiations this summer. |
|
Attachment A: Master List of Bills of Interest to Contra Costa County
Attachment B: 2022 Elections Report
|