Budget Update: Deep Cuts, And Only Temporary Protection for Vital Services

Despite the big losses and deep cuts, SEIU members and our allies were able to protect -- for now -- programs that had been targeted by the Governor and Republican legislators.

  • Homecare.  By defeating the Governor's proposed cuts, more than 80,000 seniors and people with disabilities who need help to live at home will be able to keep their home care. We also fought off an effort to drop the state's contribution to home care workers' wages to the minimum wage.
  • Child care (partially). While the delay devastated many child care providers, the budget does not reduce reimbursement rates or cut site inspections; however, money needed to fund a reserve for Stage 2 childcare was cut by the Governor..
  • Child Welfare. The proposal to cut Child Welfare grants to counties was defeated by the legislature.
  • Healthcare (partially). After making the provider cuts a priority, we were able to restore them, albeit delayed until March 2009. We fought eligibility changes that would have reduced the number of Californians with healthcare coverage by 1,000,000, and partially succeeded: as a result, 750,000 Californians will be able to keep their healthcare.

We lost other battles:

  • $3 billion in cuts to education
  • $500 million (including federal match) cut to hospitals, clinics, and doctors providing healthcare to low-income Californians
  • 250,000 kids to be cut from healthcare
  • Cuts to county administration of food stamps, IHSS, and Medi-Cal may result in layoffs, increased case-loads, and increased waits