1.18.2017 Last week, Governor Brown proposed a fiscally conservative budget of $122.5 billion for 2017-18. This budget, which is slightly less than the spending set in the current 2016-2017 state budget, was set with the expectation of an economic downturn on the horizon, and amidst great deal of uncertainty with respect to federal policy. An impending economic downturn- along with any cuts to the federal safety net- would have a disproportionate impact on struggling Californians who have yet to feel any economic recovery in their own household budgets.
California must be proactive by making investments that address economic instability, improve health, and provide a path for Californians to get ahead. This budget neglects to provide critical economic and nutrition support to low-income families through programs like CalFresh, school nutrition, CalWORKS, and Supplemental Security Income. The proposed budget also eliminates $400 million in General Fund (GF) spending for affordable housing that was committed last session and does not include any new spending to address California’s dire housing crisis.
We should note that the Governor’s proposed budget generally continues investments pertaining to current federal policies, without assumptions about some of the harmful federal changes the Trump Administration and Congress have announced they will pursue, including the repeal of the Affordable Care Act. State leadership will be closely monitoring any federal changes and will revise the proposed budget as needed.
CFPA applauds the strong stand that Governor Brown and our Legislature have taken in asserting California’s intention to fight any harmful federal changes and protect the values that California holds dear. Now is the time to strengthen the state with a plan to invest in public services and systems. We look to the Legislature to take action on behalf of low-income Californians as budget negotiations get underway.
With respect to nutrition and income support for low-income Californians, the proposed 2017-18 budget includes:
CalFresh & Food Assistance: The proposed budget makes no major funding changes. CalFresh administrative costs are projected to fall from $1,629.8 million in FY 2016-17 to $1,584.4 million in FY 2017-18, reflecting a drop in caseload. In FY 2016-17, General Fund dedicated to CalFresh has been reduced by $10.0 million, with federal reimbursement funds covering this reduction. In FY 2017-18, total funding is reduced $30.2 million in anticipation of ongoing caseload decline and administrative efficiencies.
California received an FNS Performance Award of approximately $6.4 million in September 2016 for being one of the four states with most improved Program Access Index. This award will be spent on administrative improvements for the CalFresh program and will therefore be eligible for federal matching funds.
The budget continues funding for the state and counties to implement the CalFresh ABAWD time limit by the end of 2017. Thankfully, California was recently given the option to extend our statewide waiver of the ABAWD time limit through August 2018, which is much needed to prepare for the impending negative impact upon some of California’s most vulnerable residents. link
The budget neglects to provide new allocations for two current food assistance programs – the Emergency Food Assistance Program and Drought Food Assistance program. CFPA urges the Legislature to extend funding for both programs as the need for food assistance has not gone away.
CalWORKS & SSI/SSP: There are no proposals to increase economic support to California’s households in poverty through CalWORKs or SSI grants. The Governor’s budget assumes a 2.6% federal COLA increase to SSI grants starting in January 2018, but fails to provide a state COLA on the SSP portion of the grant. This will leave SSI recipients just under the federal poverty level, struggling to cover even the most basic needs of housing and food.
The lack of investment in CalWORKs grants is even more serious. Even though caseloads are projected to decline, the proposed budget does not provide any COLA to assist CalWORKS families in deep poverty. The maximum grant for a CalWORKs family of three is just 43% of the federal poverty level, which is completely insufficient to pay for basic living costs. The documented rise in homelessness among CalWORKS clients cannot be ignored any longer. The Legislature must consider the damaging external costs of keeping families far below the poverty line and how a CalWORKs grant increase or SSP COLA could mitigate further harmful effects upon families and communities.
School Nutrition: While the proposed budget includes a 1.48% COLA for categorical programs outside of the Local Control Funding Formula, including Child Nutrition, there are no further investments to support improvements in programs that prevent child hunger and support student nutrition. There is an increase of $479,000 to support the Department of Education staffing and implementation of Child Nutrition Program Procurement Reviews.
The K-12 Budget provides $10.1 million to support investments aimed at improving outcomes for students by reducing truancy and supporting pupils who are at risk of dropping out of school, consistent with the provisions of Proposition 47. CFPA urges the Department of Education to address the role of hunger and poverty in chronic absenteeism and truancy when issuing these funds, including support for nutrition programs like breakfast after the bell, which is shown to improve attendance.
Child Care: The promise of increased investment in child care in the Budget Act of 2016 is not realized in the Governor’s proposed budget for 2017-18. Citing the need for fiscal caution, the Governor’s budget proposes delaying additional investments in child care until 2018-19. Thus, the increases to subsidized child care provider rates are not included in this budget. In order to improve the availability of child care to families, the proposed budget includes some policy proposals aimed at reducing inequity, including the use of electronic applications for child care subsidies and aligning the state’s definition of homelessness with the federal McKinney‑Vento Act for purposes of child care eligibility.
It is unclear whether these policies can make a significant impact on child care availability as the proposed budget further fails families by choosing not to adjust income eligibility for child care subsidies to align with the increasing minimum wage. As of January 1, 2017, a two-parent household earning minimum wage is no longer eligible for child care subsidy. Without the availability of quality child care, families’ ability to provide for themselves through employment is limited and children are denied access to the nutritious meals served in child care settings.
Drinking water & drought relief: While recent rains have improved drought conditions in some parts of the state, serious inequities in access to safe drinking water persist. Some major reservoirs and groundwater aquifers remain depleted or contaminated and drinking water supplies in some communities are at risk. The Budget provides $5 million General Fund for the Department of Water Resources to provide emergency drinking water support by working to develop additional water supplies. The State Water Board will continue to address critical water supplies in small communities by funding well improvements and consolidating small, failing water systems with nearby functioning systems as needed.
However, the proposed budget fails to make new investments in emergency drinking water response for communities left waiting for these long-term solutions. The Legislature must be proactive to ensure that families in poverty are not further harmed by their lack of access to safe water, particularly given California’s legislative commitment to meeting the Human Right to Water. While sustainable solutions are sought, CFPA urges the Legislature to mitigate the cost of purchasing water for families at risk of hunger when community water systems are inadequate or unsafe.
What’s Next?
The Legislature will begin discussing state budget proposals this month. The Governor will release his revised budget by May 15, at which point some areas of federal budget implications should be clearer. The final budget must be presented to the Governor by June 15.
Learn More
Read the Governor’s Proposed 2017-18 Budget link
Read the LAO Overview of the Governor’s Proposed Budget link
Read the California Budget and Policy Project’s Overview of the Governor’s Budget link
Questions? Contact Tracey Patterson at tracey@cfpa.net or 510.433.1122 ext. 101
