The budget conference committee and the Brown Administration hammered out most of the final pieces of a budget plan but the final changes included painful new reductions for both health and welfare programs. Meanwhile affordable housing advocates lost redevelopment housing funds as part of the ending of redevelopment agencies. Taken together it means many low income families will be poorer, have less medical care and will have fewer housing options.

Among the significant changes were:

• Placing a "hard" cap on MediCal doctor visits unless the doctor certifies that is medically necessary.
• Reducing CalWORKs grant by 8 percent
• Reducing children's CalWORKs grants by an additional $100 million (likely a 14% to 20% cut)
• De-prioritizing child care for 11 and 12 year olds

WCLP will have more details on all these proposals in the coming days as soon as trailer bill language is available.

Meanwhile the budget is not complete. Perhaps most vexing to the parties is resolving the realignment of public safety programs (along with child welfare and foster care) to the counties. In phase one the Administration is proposing a Constitutional Amendment that shift programs to counties along with providing  guarantees of adequate revenue. In the first five years, that revenue would come from the tax extensions that are being proposed for the June ballot but after that the funds have to come from the General Fund.

Republicans and some counties are very skeptical that the state will make good on its commitments in the future and fear counties will have to maintain the programs with reduced state assistance. Counties are so concerned about this they are insisting on language that would give counties a say in any legal settlements the state agrees to if the state is sued for failure to meet adequate standards of care or performance. Moreover, Republicans are demanding that the bill that implements the realignment be a two-thirds vote and that it be done now.

Given the numerous complex legal issues to be resolved this seems like an impossible demand to meet. For example, the current proposal would shift $1 billion to counties to pay for a 40% cost of CalWORKs grants. But that is just one way for the $1 billion to be spent. A  thoughtful process can resolve these kind of issues but a truncated hurried process will almost certainly lead to errors.

There is some optimism that enough Republicans will ultimately support the package to place it on the ballot as the Governor proposes. While no Republican member has committed to voting for it, more than a dozen refused to sign up with the "Taxpayer Caucus". Governor's office and Democratic leadership are focusing on these members for the needed votes. The question is what price will be paid to secure the votes. A spending cap? More cuts? Pension changes?

Stay tuned.