2009 Budget Agenda

After a lengthy impasse, Governor Schwarzenegger signed a massive budget package on February 20, 2009 to close California’s $40 billion deficit. The $130 billion budget deal relies on $15 billion in spending cuts, $12.8 billion in temporary tax increases, and $11.4 billion in borrowing. Additionally, seven ballot initiatives will go to the voters as part of the deal that was brokered by legislative leadership and the Governor. Five of the propositions have fiscal implications and must pass on May 19, 2009 to avoid an additional $6 billion deficit. Additionally, if the state does not receive at least $10 billion in federal stimulus funds by April 1, 2009, deeper cuts will take effect. While this budget deal brings an end to the latest budget saga, further negotiations will be necessary if any of the 5 budget-related ballot measures fail or if state revenues fall below projections-a scenario that remains possible, if not likely, given California’s precarious financial situation.

Click here for an overview of the budget covering fiscal years 2008-2009 and 2009-2010 that was signed.

During the negotiations, AACRE sought to maintain funding for the following budget priorities:

• The Cash Assistance Program for Immigrants (CAPI). CAPI serves as a lifeline of living assistance for lawfully present elderly, disabled or blind immigrants who do not qualify for federal SSI. The average monthly caseload for CAPI is roughly 10,300 individuals. Over 98% of CAPI recipients are sixty-five years or older, and over 80% of CAPI recipients are APIs.
• The California Food Assistance Program (CFAP). CFAP provides vital food assistance to roughly 23,400 low-income, lawfully present immigrants who are ineligible for federal food stamps.
• Medi-Cal benefits for immigrants. The Governor proposed eliminating comprehensive medical care for lawfully present immigrants. Benefits would have been limited to emergency services, pregnancy-related services, long-term care in a nursing facility, and breast and cervical cancer treatment.

• Medi-Cal benefits for all adults. The Governor proposed eliminating the following benefits for all Medi-Cal recipients: dental, chiropractic, incontinence creams and washes, acupuncture, audiology, speech therapy, optometry/optometrists, optician/optical lab services, podiatry, and psychology services.