Under Governor Schwarzenegger, California is investing in the care and well-being of the state’s older population. In 2006, his leadership delivered the Discount Prescription Drug Program to help provide seniors with affordable prescription drug care and Proposition 1C, a $2.9 billion bond authorization package to provide affordable housing to California’s citizens.

Major Changes in the Governor’s May Revision

• Total Medi-Cal expenditures of $37.7 billion for 2007-08 ($14.7 billion General Fund), a net total funds increase of $330.3 million ($39.4 million General Fund) from the Governor's Budget. General Fund expenditures are expected to increase by $1.1 billion, or 7.6 percent over the revised 2006-07 level. 

• The net General Fund Medi-Cal increase for 2007-08 from the Governor's Budget includes $107.1 million for the implementation of new rates for all Medi-Cal managed care plans and $39.4 million in increased county and other administration costs due to an update of base costs and funding for the one-time and ongoing costs for implementation of federal Deficit Reduction Act (DRA) citizenship verification requirements.

• Total Medi-Cal expenditures of $35.4 billion in 2006-2007 ($13.6 billion General Fund), a decrease of $85.8 million ($20.7 million General Fund) from the Governor's Budget, mainly due to administrative and caseload changes. General Fund expenditures for Medi-Cal have increased by $797.5 million, or 6.2 percent over the 2005-06 level.
• $3.6 billion General Fund for the SSI/SSP program in 2007-08. This represents an increase of approximately $100 million from the revised 2006-07 expenditure level.
• Suspending the January 2008 state SSI/SSP COLA. This will result in savings of $184.7 million in 2007-08 and ongoing savings of $369.5 million in future years. California’s maximum SSI / SSP payments for couples are the highest in the nation – almost 66% higher than payments in New York.
• Increasing support for the IHSS program to $1.5 billion in 2006-07 and $1.6 billion in 2007-08, including an increase of $30.4 million in 2006-07 and $85.6 million in 2007-08 compared to the Governor's January Budget proposal.

Areas Largely Unchanged from the January Budget Proposal

California Discount Prescription Drug Program

• $8.8 million to implement the California Discount Prescription Drug Program to deliver generic and brand name prescription drugs at prices up to 40 to 60 percent below retail eligible individuals, including seniors whose drugs are not covered by Medicare (upon federal approval).  

In-Home and Long-Term Care

• $1.6 billion (General Fund) for the In-Home Supportive Services program to provide support services and respite care to eligible low-income aged, blind, and disabled persons.
• $900,000 in federal funds for implementation of the Real Choice Systems Transformation Grant, referred to as the California Community CHOICE program, to help build the state's long-term care system infrastructure and increase the capacity of the home- and community-based services system.

Affordable Housing

• In November 2006, the voters approved Proposition 1C, the $2.9 billion Housing and Emergency Shelter Fund Act of 2006.  The Governor’s Budget proposes providing $140 million in 2007-08 to provide affordable rental housing, including for the State's lower income workforce, the elderly, disabled, and veterans. 

Identity Theft

• The Governor’s Budget provides the Department of Financial Institutions with 10 new positions to expand bank examinations, so that they include review of Information Technology/E-Banking/Disaster Preparedness. Seniors stand to benefit greatly as they are often targeted by identity thieves.