There are two parts to this year’s May Revision: a package of budget solutions to make up the $15.4 shortfall and additional “contingency proposals” to reach the $21.3 billion level.

• Cutting health and human services programs by $1.8 billion, detailed below;
• Borrowing up to $6 billion through a Revenue Anticipation Warrant (RAW);
• Reducing education funding by $3 billion – including higher education (If 1C, 1D & 1E fail the Governor proposes reducing education funding by an additional $2.3 billion); and
• Borrowing almost $2 billion from local governments if the initiatives fail.

• Reduce Medi-Cal Eligibilty and Other Medi-Cal Costs. The Governor is seeking “flexibility” from the federal government to allow California to make cuts worth $750 million despite the provision of the American Recovery and Reinvestment Act (ARRA) that conditions the receipt of higher Medicaid matching funds on states not cutting eligibility. The May Revision states the Governor’s intent to “petition the Obama Administration to work with California to secure essential program flexibilities to slow the rate of program growth [and] support the state’s authority to determine eligibility, the adequacy of provider rates and scope of benefits.”
• Limit Medi-Cal for Qualified Immigrants. Limit benefits for newly qualified immigrants (except children and pregnant women) and some other legal immigrants to restricted-scope services. $125 million.
• Medi-Cal Pharmacy Reforms. $75 million.
• Medi-Cal Anti-Fraud Initiative. $3.4 million cost; 2009-10 savings estimated at $48 million.
• Cut Medi-Cal Payments to Private Hospitals by ten percent. $20 million.
• Roll back Medi-Cal Rate Increase for Family Planning Services to pre-January 2008 levels. $36.8 million
• Eliminate Certified Application Assistance. $2.7 million.

• Cut eligibility for Healthy Families back to 200% of the Federal Poverty Level thereby eliminating coverage for approximately 225,000 children. $54.5 million.
• Reduce the Medi-Cal Adult Day Health Care Program by limiting benefits to three days per week. $25.5 million.
• 10 Percent Rate Reduction for Medi-Cal Substance Abuse Treatment Services. $8.8 million.
• Redirect $60 million in Proposition 99 tobacoo tax funds from county health, clinic, Breast Cancer Early Detection, Asthma. MRMIP, AIM and other programs to Medi-Cal.
• Maternal, Child and Adolescent Health Grants. $10 million.

• Eliminate the Cash Assistance Program for Immigrants (CAPI) and the California Food Assistance Program (CFAP).
• Reduce SSI/SSP Grants to the minimum federally allowable levels: $830 for an individual and $1,407 for a couple per month.
• Several IHSS cuts including limiting the domestic and related services, targeting the IHSS share-of-cost buyout to the most functionally impaired persons, limiting state participation in IHSS wages.