IN RESPONSE TO GOVERNOR'S PLANNED BUDGET CUTS, SUPERVISORS RIDLEY-THOMAS AND MOLINA CALL FOR ANALYSIS OF COUNTY CONTRACTED SERVICES

 

FOR IMMEDIATE RELEASE

May 18, 2010                                                                                                                              Contact:     Ed Maddox 213-974-2222

                                                                                                                                                                           James Bolden 213-200-5314

 

IN RESPONSE TO GOVERNOR’S PLANNED BUDGET CUTS, SUPERVISORS RIDLEY-THOMAS AND MOLINA CALL FOR ANALYSIS OF COUNTY CONTRACTED SERVICES

 

LOS ANGELES – Insisting that a cost/benefit analysis of bringing County-contracted services in-house is needed to provide the Board with critical information during its June Budget deliberations, Supervisors Mark Ridley-Thomas and Gloria Molina today pushed for a clearer understanding of how state-level health and social service cuts could impact health and social service programs serving vulnerable County residents.

Last week, Governor Arnold Schwarzenegger released his 2010-11 May Budget Revision, which projects an overall $19.1 billion state deficit. 

“The Governor’s May Revision does not propose any significant revenue solutions,” Supervisor Ridley-Thomas said.  “The package contains program eliminations and major reductions primarily to Health and Social Services Programs.”

The May Revision proposes $12.4 billion in cuts, which would affect various critical programs serving County residents, including the following:

Social Services

• CalWORKS program which aids low-income children and their parents;
• In-Home Supportive Services Program, which aids seniors and persons with disabilities so they can live safely in their homes rather than expensive institutions;
• Cash Assistance Program which helps elderly and disabled legal immigrants;

Mental Health

• Mental Health Realignment funds estimated to result in a County loss of $195.0 million;
• AB 3632, Program which provides mental health services to children;

Health

• Medi-Cal, which provides health care coverage to low-income seniors, persons with disabilities, pregnant women, children and their families

Child Care

·        Elimination of need-based, subsidized child care and development programs that enable parents to work.

 

“The County could face severe shortfalls and gaps in funding for safety-net programs, and we must make wise decisions in allocating limited resources to areas of greatest need,” the Supervisor said.

The County currently provides health and social service programs through a complex combination of direct provision of services by county employees, and contracting.  In some areas, contracting may be more cost-effective, while in others, direct provision of services may be more cost-effective.

The Board directed the County’s Chief Executive Officer to report back within 30 days with the following information:

• A comprehensive list of all County health, mental health, and social services currently provided through contractors, which would be impacted by the Governor’s May Budget Revision;
• A cost/benefit analysis of bringing the contracted services in-house should the Governor’s May Budget Revision be implemented.

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