Details are slow to emerge from the budget deal but we are hearing reports that as part of the final budget agreement, negotiators have agreed to "eliminate all COLAs" from social service programs. Another source said that the COLAs would be "inoperative" but did not define the term.

The Cost of Living Adjustments (COLA) are likely the statutory provisions in CalWORKs and the State Supplemental Program (SSP) for the blind, aged and disabled. Both COLAs are long standing features of the two programs and are intended to keep the program benefits from losing value to inflation over time.

Historically, the Legislature and the Governor have suspended the two COLAs more times than it has been provided to program participants. The CalWORKs COLA has been suspended or the grant actually cut in 15 of the past 21 years. The SSP grant has been suspended or reduced 13 of the past 20 years. While this has resulted in reduced value of benefit checks, the COLAs have always provided the Legislature with something to trade away in difficult budget years. It appears that leverage is now lost.

Unconfirmed reports are circulating that the CalWORKs agreement also limits time on aid to 48 months, down from the current maximum of 60 months. Without seeing the details it is hard to evaluate the impact. If it is a hard 48 month total time limit that would impact many families. If it requires families to leave aid after 48 consecutive months but with an option to return for the final 12 it may have less impact. Also of interest is whether this agreement resets time clocks or when the provision goes into effect. If it is implemented immediately it would significantly reduce the amount of federal TANF funds that the state is eligible for under ARRA.

Meanwhile the Governor is having a field day, issuing a new video on his twitter site that seems to make light of the damage caused by his budget. Here's the link to check it out for yourselves:

http://www.msnbc.msn.com/id/32056351