The Governor is committed to promoting the well-being of children, strengthening families, and helping adults and parents achieve their potential for economic self-sufficiency.

California Work Opportunity and Responsibility to Kids

• $7 billion (state, local, and federal funds) in total CalWORKs expenditures for 2007-08, including TANF and maintenance-of-effort (MOE) countable expenditures. The amount budgeted includes $4.8 billion for CalWORKs program expenditures within the DSS budget, $136.8 million in county expenditures, $1.9 billion in other programs, and $150.1 million for a CalWORKs program reserve.
• Other programs include expenditures for the Statewide Automated Welfare System, Child Welfare Services, California Food Assistance Program, State Supplementary Payment, Foster Care, State Department of Education child care (including after school programs), California Community Colleges child care and education services (including fee waivers), DCSS disregard payments, DDS programs, and Cal Grants.

Significant Changes in the May Revision

The Governor’s May Revision incorporates methodology changes and updated caseload projections to more accurately reflect the estimated impact of CalWORKs reform, including:

• Implementing full family sanctions for long-term non-compliance
• Modifying the safety net program to increase work participation
• Establishing time limits for families with drug felons and ineligible adults

These measures are projected to improve the state’s work participation rate by more than 6 percent in 2007-08 and over 11 percent thereafter. The May Revision also includes requirements to implement a semi-annual reporting system for CalWORKs and food stamp recipients in 2008-09. This will simplify reporting requirements for families and make it easier for counties to administer the program which will generate savings when compared to the current quarterly reporting system.

Areas Largely Unchanged from the Governor’s January 2007 Budget

Increase work participation and personal responsibility
The Governor's Budget proposes to implement changes that place a greater emphasis on work participation and personal responsibility, improve California's ability to meet federal requirements, and increase program efficiencies. The following key policy objectives continue to serve as a foundation for the Administration's CalWORKs proposal:

• Emphasize the shared responsibility of government and participants to help families prepare for and achieve self-sufficiency through work while maintaining a statewide safety net for low-income families.
• Maximize participation in the workforce and decrease dependence upon aid.
• Create incentives for counties to utilize available resources more efficiently and reward meeting welfare-to-work goals.
• Maximize available federal block grant funds and the federally-required level of state funds and align benefit levels with TANF programs in other states to ensure the long-term viability of the program.

To provide recipients sufficient time to comply with work requirements, these reform measures will become effective on November 1, 2007, and are estimated to provide net savings of more than $325 million in 2007-08 and $426 million annually thereafter. The combination of CalWORKs reform and county efforts will position counties to increase work participation rates, meet federal requirements, avoid penalties, and successfully move families from welfare to work.

Increase Employment Training Fund for CalWORKs
Additional Employment Training Fund revenues are available in 2007-08 to support CalWORKs employment services. This will achieve one-time General Fund savings of $15 million with no impact to recipient families and still allow for an increase in the Employment Training Panel's appropriation compared to the Budget Act of 2006.

Supplemental Security Income/State Supplementary Payment

Significant Changes in the May Revision

The May Revision proposes suspending the January 2008 state COLA. This will result in savings of $184.7 million in 2007-08 and ongoing savings of $369.5 million in future years.

Currently California’s maximum SSI / SSP payments for couples are the highest in the nation, and payments for individuals are the second highest. Overall, the state’s payments far outpace other states; California’s SSP is $233 for an individual, compared to $168 in the next-nearest state, Connecticut, $129 in Massachusetts, and $87 in New York.

The federal Supplemental Security Income (SSI) program provides a monthly cash benefit to eligible aged, blind, and disabled persons who meet the program's income and resource requirements. In California, the SSI payment is augmented with a State Supplementary Payment (SSP) grant. These cash grants assist recipients with basic needs and living expenses. The federal Social Security Administration administers the SSI/SSP program, making eligibility determinations and grant computations and issuing combined monthly checks to recipients.

Areas Largely Unchanged from the Governor’s January 2007 Budget

The Governor's Budget proposes $3.6 billion General Fund for the SSI/SSP program in 2007-08. This represents a $100 million increase from the revised 2006-07 expenditure level.

In-Home Supportive Services

Significant Changes in the May Revision

The May Revise increases support for the IHSS program to $1.5 billion in 2006-07 and $1.6 billion in 2007-08. This includes an increase of $30.4 million in 2006-07 and $85.6 million in 2007-08 compared to the Governor's January Budget proposal.

The In-Home Supportive Services (IHSS) program provides support services, such as house cleaning, transportation, personal care services, and respite care to eligible low-income aged, blind, and disabled persons. These services are provided in an effort to allow individuals to remain safely in their homes and prevent institutionalization.

Areas Largely Unchanged from the Governor’s January 2007 Budget

The May Revision retains the proposal to limit state participation in the cost of IHSS wages and health benefits at the levels in effect in the current year.

Child Welfare Services

Significant Changes in the May Revision

The May Revision includes $4 billion ($1.6 billion General Fund) to provide assistance payments and services to children and families under these programs. This is a $16.5 million increase from the Governor’s budget.

• The May revision includes a proposal to establish statewide consistency and avoid double payment in rates for children who receive adoption or foster care payments from DSS as well as services from DDS.
• The Administration proposes to establish a standard monthly rate of $2,006 for adoption and foster care payments to create statewide consistency. Children will continue to receive all necessary services related to their developmental disability through the regional center system. This standardization of the rates will result in savings of $7.1 million in 2007-08 and net annual savings of $45.8 million in future years.

The child welfare system in California provides a continuum of services through programs, including CWS, Child Abuse Prevention, Foster Care, Adoption Assistance, and adoptions to children who are either at risk of or have suffered abuse and neglect.

Areas Largely Unchanged from the Governor’s January 2007 Budget

The Governor's Budget maintains last year's investment and includes an additional $5.4 million ($2.9 million General Fund) in 2007-08 for additional programmatic investments designed to ensure the safety of children and improve outcomes.

Specifically, these investments include:

• $3.2 million ($2 million General Fund) to implement county system improvement plans. Funds will pay for strategies designed to improve outcomes for children and families under the jurisdiction of the juvenile justice system and placed in out-of-home care by county probation departments.
• $1 million ($0.3 million General Fund) to strengthen state leadership and accountability and improve outcomes in CWS. Funds will improve the identification of mental health and developmental needs of children and youth in foster care and access to mental health treatment resources for children and youth in foster care and children and youth at risk of foster care entry. This proposal includes funding to prevent child trafficking in inter-country adoptions.
• $1 million ($0.5 million General Fund) to establish a Child and Family Services Review Unit to oversee data quality and integrity, monitor program performance, and ensure compliance with the federal Child and Family Services Review. This proposal seeks to improve performance in meeting federal outcomes and generally improve the provision of child welfare services.
• $0.2 million ($0.1 million General Fund) to support the California Child Welfare Council, which was created to serve as an advisory body to the courts and various agencies that provide services to children and youth receiving child welfare services.