Governor Says He Will Cut Foster Care Rates if Propositions Fail.

The following information is from the California Alliance of Child and Family Services, an advocacy organization of which Parents by Choice is a member:

Governor Arnold Schwarzenegger released his May Budget Revision last Thursday, ahead of the May 19 special election that includes a series of ballot measures aimed at balancing the state’s budget, and projected that "spending this year and next will exceed available funds by $15 billion in the absence of any corrective action," assuming passage of propositions 1A, 1B, 1C, 1D and 1E.

"Should these measures all fail," the Governor warned, "the budget will be an additional $5.8 billion out of balance in 2009-10. Out-year deficits would also be higher given a revenue loss of $16.2 billion."

Of the six propositions on the ballot, the only measure garnering majority support in recent polls would prohibit salary level increases for the governor, other top state officials, and members of the legislature if the state General Fund is expected to end the year with a deficit. The others appear headed for defeat.

The Governor’s revised budget forecasts cuts in state spending to address the looming $15 billion deficit that will exist even if the five critical propositions pass, and additional cuts in the likely event they fail. Should the May 19 ballot initiatives not pass, the Administration has proposed to save $13.9 million by reducing group home, foster family agency, specialized care, and clothing allowance rates by 10%. The budget proposal does not indicate why children placed with group homes and in certified foster family agency homes were singled out for reductions in care. The action may be calculated to split the foster care community in its advocacy: rates paid county licensed foster caregivers, kin guardians and adoptive parents are not singled out for cuts, while rates paid to private nonprofit organizations that care for children through certified foster families and group homes are.

It may also suggest that the Administration believes it can score savings in foster care in this way without endangering federal economic stimulus funds. The Administration also proposes to save another $70 million by reducing the General Fund allocation to counties for Child Welfare Services by 10%. Counties could "prioritize remaining funds to protect the health and safety of children and their families, and appropriately address federal outcome requirements."