HHS Network CA Blog

Dear Allies,

You work tirelessly to serve California’s seniors, families and children.  You’re on the frontlines of providing health and human services at a time of economic difficulty and deep budget cuts.  With that in mind, our goal is to offer you clear information on what’s happening in the State Capitol that may affect you and the people you serve.

Today, we’re emailing with information on the latest chapter in the CA budget – trigger cuts.

In July, the California legislature created a mechanism in the budget for automatic cuts – or trigger cuts – if the state doesn’t collect $4 billion in additional revenue this year.  There are two tiers of cuts, totaling $2.5 billion, which may go into effect in early 2012.  These cuts may affect programs such as in-home supportive services, developmental disability services, and childcare funding, among others.

Keep an eye out for December 15^th. By then, the state will determine if they still expect to collect $4 billion in additional revenue. If the state is on track with revenue then the trigger cuts will not go into effect.

However, if the state expects to collect only $2-3 billion of in additional revenue, a first tier of $600 million in cuts will be implemented.  If the state expects only $0-2 billion in additional revenue, then $1.9 billion of additional cuts that go into effect.

At this point in time, it’s too early to know if the trigger cuts will happen.  We will keep you posted with more information as it becomes available.

In the meantime, we encourage you to continue educating and informing your communities about the need for revenue solutions that will put California back on a path to prosperity and prevent the state from budgeting with trigger cuts in the future.

We suggest using the following messages – the “Four R’s of Trigger Cuts” – when discussing these issues.

1. We need REVENUE SOLUTIONS, not the “wait and see” approach to budgeting of trigger cuts.
2. This situation could have been prevented, but REPUBLICAN legislators blocked revenue solutions, forcing CA to budget with trigger cuts.
3. RECENT CUTS already devastated the social safety net and resulted in job losses.  More cuts will only make further weaken programs that CA families depend on.
4. CA needs to REBUILD & RESTORE services, not make more cuts at a time of rising poverty.

We’ll share information with you in the coming weeks and months as we learn more about the potential trigger cuts.  We also encourage you to like us on Facebook, or follow us on Twitter for updates on the trigger cuts and other important issues.

Sincerely,

The HHS Network

In an interview with the Sacramento Bee on Wednesday, California Controller John Chiang said lawmakers who fear the prospect of automatic mid-year budget cuts should find alternatives soon:  ”I say if you don’t like the fact that we may have triggers, then you better offer an alternative, and you should offer that alternative pretty quickly.” Here at the Health and Human Services Network of California, we’ve been fighting the deep cuts to our social safety net and rolling out revenue solutions to the California budget crisis for quite a while now, so we were happy to hear Controller Chiang throw down the gauntlet. California legislators, here is our list of revenue alternatives to Trigger Cuts:

• Treat oil companies the same as every other government in the world and tax their extraction of oil in California: California is the only oil producing state in the world that does not tax oil production. Furthermore, an oil severance fee is imposed on the process of extracting oil from the ground, and is not passed on to producers or consumers. An oil severance fee could bring an extra $1.2 billion dollars to our state.
• Eliminate secret corporate tax loopholes: End the corporate loopholes that let corporations avoid property tax reassessment when properties are sold, bringing $1.7 billion dollars to California. Currently, corporations and companies make liberal use of numerous loopholes that allow them to avoid property tax reassessment when properties are sold (i.e. bank mergers, private equity buy-outs). By splitting the property tax rolls, we can make commercial-industrial property owners pay their fair share to the state – California homeowners have grown to pay a far larger share of property tax in the state since Proposition 13, and we need to correct that imbalance.
• Reinstate top income tax brackets to 11%: 25% of the income generated in California is distributed among the top 1% of the state’s wealthiest earners. At a time when unemployment levels are skyrocketing and the state is facing yet another multi-billion dollar budget deficit, reinstating the top income tax brackets to 11% would give the state’s economic recovery a powerful kick-start of about $4 billion dollars.
• Smart savings from Corrections: California could save an additional $1 billion by implementing sustainable and common-sense reductions to the state’s corrections budget — without posing a threat to public safety. Options include releasing 1,500 of the sickest, non-violent offenders, halting additional prison construction, as well as others.
• Apply jobs test to unsuccessful & costly corporate tax breaks: Enterprise zones and other corporate subsidies have demonstrated absolutely NO impact on job creation/retention in California. By eliminating widely discredited enterprise zones, favorable treatment for like-kind exchanges, water’s edge tax havens and other unjustified tax expenditures, California could generate an additional $1 billion in revenues.
• Mandatory Single Sales Factor Modifying existing law that allows corporations in California to choose how their profits are taxed. Require corporations to use a “mandatory single sales factor” – based on the percentage of sales made within California.  This would bring in an additional $428 million to help fix our budget crisis.

These are just a few of the many revenue solutions we have in California to protect our social safety net, help families weather this recession, and return the state to prosperity. Deep cuts to essential health and human service programs will no longer work. We have tried it for years and it’s a losing proposition for California’s families, schools, health, jobs, and economy. These trigger cuts will lead to more lay-offs, foreclosures, and reduced economic activity in California. Republican legislative leaders blocking reasonable tax alternatives are only furthering the economic downturn. It’s time to reinvest in California, revitalize our economy, and find those revenue solutions.

Great news – Governor Jerry Brown signed SB 202, legislation that will make the initiative process more democratic and help ensure that the budget reflects our state’s priorities.

We can’t thank you enough for speaking up in support of this important legislation.  Your advocacy made all the difference for the millions of people who are already struggling to make ends meet.  You helped to empower our state’s voters and protect Californians from further needless budget cuts.

With this new law initiatives will now be placed on the ballot of the November general election, a time of greater voter turnout.  This will allow great participation and engagement on far-reaching decisions that affect our families, schools, essential public program, and businesses.

This law will also wisely postpone a vote on the creation of a “rainy day” fund in California, a proposal that is unrealistic at a time when we are dealing with a wall of debt and our public programs are facing devastating cuts.  We can’t afford to further shackle our state’s ability to balance our priorities.

If you have a moment, tweet your thanks to the Governor for signing SB 202.  We suggest:

@JerryBrownGov thx for signing SB 202! We stand w/ you to empower CA voters, postpone the spending cap. #cabudget

Again, thank you for your help in bringing SB 202 across the finish line.  Together, we can accomplish great change.

With three days left before the Governor must sign the bill, California needs your voice for SB 202. This important reform measure has been sitting on Governor Brown’s desk for weeks. If you have not yet sent in a letter, please do so now. Let’s show Governor Brown that Californians support initiative reform!

Below you’ll find letters of support from HHS Network of CA partners, as we shower SB 202 with support and encourage Governor Brown to sign the bill!

____________________________________________________________________________
From CAP – California Partnership

The Honorable Jerry Brown
Governor of the State of California
State Capitol Building
Sacramento, CA 95814

RE: Support for SB 202 and a Healthy Initiative Process in California

Dear Governor Brown:

I am writing in support of SB 202, a common sense bill waiting for approval on your desk.  SB 202 will only place ballot initiatives on the November general elections, when we see the greatest number and range of Californian voters come out to weigh in on impactful state decisions and make their voices heard.

Now more than ever we need Californians empowered to think, debate, and weigh in on initiatives, which have a historically profound impact on our state’s health, education, taxes, and economy.  SB 202 will involve more of our state’s voters in the initiative process, which can only be a good thing for California as we work to balance our budget and set our economic priorities for the coming years.

SB 202 will also postpone a spending cap referendum to 2014, a far better time to be considering the creation of a “rainy day” fund for California.  When our economic forecast is sunnier we can debate the issue, but right now we need funds for essential public programs in California that have been slashed, cut, and whittled down to the tune of $15 billion in recent budget action. A spending cap would only limit the investment we need to make in this harsh economic time to support the core infrastructure of the state.

California Partnership is a statewide anti-poverty coalition of over 120 community based groups. We firmly believe that we must fund essential health and human services programs for the most vulnerable populations in California. We support measures that protect our safety-net and SB 202 meets that principle by postponing the spending cap that could be harmful to California’s families.

Instead of limiting our resources, if we have funds to spare, they should go towards restoring those programs that support the health, security, and education of California’s children, seniors, families, and vulnerable residents.

SB 202 will help our state keep our priorities straight by empowering our voters and maintaining healthy budget priorities.  We urge you to sign SB 202 for a better initiative process for California.
Sincerely,

Nancy Berlin
Director
California Partnership

____________________________________________________________________________
From CIPC – The California Immigrant Policy Center

The Honorable Edmund G. Brown
Office of the Governor
State Capitol Building
Sacramento, CA 95814

California needs your voice for SB 202, a bill currently sitting on Governor Jerry Brown’s desk. If you have not yet sent in a letter, please do so now. The Governor must veto or sign the bill by October 9th, and we need to show him that Californians support initiative reform!

Below you will find our letter of support, urging the Governor to sign this important reform measure.  If you too would like to send Governor Brown a message of your support for SB 202, so we can democratize our ballot initiative process and postpone a detrimental “rainy day” fund referendum to 2014, sign the suggested letter below ours and fax it in to the Governor at (916) 558-3160 or click here to email it to his office.

You can also tweet your support of SB 202 to Governor Brown! We suggest:

@JerryBrownGov Pls sign SB 202 to empower CA voters! Set CA on right track with better initiative process, hold spending cap vote #cabudget

_________________________________________________________________
OUR LETTER:

October 3, 2011

The Honorable Jerry Brown
Governor of the State of California
State Capitol Building
Sacramento, CA 95814

Dear Governor Jerry Brown:

On behalf of the Health and Human Services Network of California, a coalition of leading advocates, consumers, and allies working together for strong health care and human services in the state, we urge you to sign SB 202.  This crucial bill, now sitting on your desk awaiting approval, will help make the initiative process more democratic in California as well as shift a planned referendum on a spending cap measure to 2014.

As Californians try to figure out our future – terms of our social safety net, jobs, education, taxes, and the budget – we know that greater voter participation will only help the process. Ballot initiatives have far-reaching effects on our families, schools, essential public programs, businesses, and our everyday lives, and its time to make sure the process is working in the best way possible.  Initiatives voted on in November general elections see greater voter turn out, and allow more Californians to have a voice in deciding significant legislation at a time when what we decide today has a rippling impact right now.  Indeed, in every election since 2000, 2.5 million more Californians voted in the general election than in the primary election, and that greater turn out is more likely to be diverse, and come from all ranges of income and age.

For this reason, we believe that placing future ballot initiatives only on the November general elections will bring the initiative process back to its original intent, allow great voter participation in California on crucial decisions, and through consolidation even save us some taxpayer money along the way. California will not be alone in making this important change to increase voter participation in direct democracy; eighteen other states already have similar requirements.

Furthermore, SB 202 will push back a vote on a spending cap referendum to 2014.  This referendum, requiring California to set money aside in the budget for a so-called “rainy day” fund, makes no sense when we are facing a wall of debt and our public programs are suffering devastating cuts.  Shackling our state with what is essentially a pair of budget handcuffs at a time when we are struggling to balance our priorities and support our social safety net for struggling Californians will only add to our problems.  It is best to set aside money for a rainy day when the sun is shining, not when we’ve cut $15 billion in public programs that provide a lifeline for many families and communities in our state.

For all these reasons, we support SB 202.  Please sign the bill, for the sake of an empowering initiative process for Californian voters, and a budget policy that reflects our priorities in this state.

Sincerely,
The HHS Network of California

______________________________________________________________________________________________________
YOUR LETTER:

The Honorable Jerry Brown
Governor of the State of California
State Capitol Building
Sacramento, CA 95814

RE: Support for SB 202 and a Healthy Initiative Process in California

Dear Governor Brown:

I am writing in support of SB 202, a common sense bill waiting for approval on your desk.  SB 202 will only place ballot initiatives on the November general elections, when we see the greatest number and range of Californian voters come out to weigh in on impactful state decisions and make their voices heard.

Now more than ever we need Californians empowered to think, debate, and weigh in on initiatives, which have a historically profound impact on our state’s health, education, taxes, and economy.  SB 202 will involve more of our state’s voters in the initiative process, which can only be a good thing for California as we work to balance our budget and set our economic priorities for the coming years.

SB 202 will also postpone a spending cap referendum to 2014, a far better time to be considering the creation of a “rainy day” fund for California.  When our economic forecast is sunnier we can debate the issue, but right now we need funds for essential public programs in California that have been slashed, cut, and whittled down to the tune of $15 billion in recent budget action.

If we have funds to spare, they should go towards restoring those programs that support the health, security, and education of California’s children, seniors, families, and vulnerable residents.

SB 202 will help our state keep our priorities straight by empowering our voters and maintaining healthy budget priorities.  Please sign SB 202 for a better initiative process for California.

Sincerely,
Your Name & Signature

There’s no denying the reality that California is in desperate need of real, sustainable revenue solutions. Without those revenues in place, California has subsequently been forced year after year to impose devastating cuts to our schools, our health care, our human services, and the very core of our public infrastructure. Over the last four fiscal years, total cuts to our health care and human services programs have totaled in at more than $15 billion.

Yet, despite consecutive years of endless budget cuts — Amazon.com, one of just a handful of the wealthiest corporations benefitting from outrageous tax breaks and loopholes in California, is now asking Californians to pay for an election to overturn our state tax code.

Don’t let Amazon.com cheat California! Click here to tell Amazon.com it’s time to “pay your fair share!”

Amazon.com has made billions by doing business in California. Now they want to overturn a recently passed law that would require sales tax to be applied to online transactions – while at the same time shifting the burden onto the shoulders of California’s seniors, struggling families, low-income kids and people with disabilities.

Supported by Governor Jerry Brown, and signed into law last month, ABx1 28 stipulates that out-of-state Internet retailers must collect sales tax from Californians if they have a physical presence in the state. This new policy would generate roughly $200 million in additional sales tax annually, but would also remove an unfair advantage for online retailers like Amazon.com competing with traditional small and family owned businesses.

Don’t let Amazon.com off the hook! Click here to tell Amazon.com it’s time to take responsibility and “pay your fair share!”

Multi-billion dollar companies like Amazon.com have long taken advantage of overly generous tax breaks and loopholes that deprive our families, our communities, our seniors, and all Californians of the necessary resources needed to make sure we all enjoy a bright, prosperous future. But now they want to go even further and completely overturn the state’s tax code in order to reverse a recently passed law while asking California to foot the bill!

Amazon.com is willing to spend millions to try and manipulate the polls in order to protect their profit margins. If Amazon.com succeeds in overturning our state tax code, that means more seniors, more families, and more children will be forced to endure even more life-threatening cuts down the road.

Let your voice be heard today! Don’t help Amazon.com cheat California — Click here to tell Aamazon.com to “pay your fair share!”

Our goal is to get 2,000 signatures by August 30th! But we need your help! After you’ve signed the petition, PLEASE forward it on to at least 10 of your friends, family members, or coworkers and ask them to take a minute to sign the petition for economic justice in California!

In partnership with the Health and Human Services Network of California and the San Francisco Foundation, Alliance for Justice invites you to participate in a free webinar on August 22: California Ballot Measures – Yes, You Can Influence That Vote!

Please join us on August 22, at 3:00 PT.

This webinar is an opportunity for organizations affected by budget cuts and who may be interested in engaging in ballot measure work in California to understand the legal issues that may arise in the course of their work. The session will cover the federal tax law implications of ballot measure advocacy or other lobbying activities, as well as the California ballot measure disclosure reporting laws that may apply to your activities. The presentation will discuss the implications of raising money for work on ballot measures and tips on how to do so to limit the impact of the CA disclosure requirements. The session will provide time for questions from the audience.
To register, please enter your information here.

We encourage you to take a short survey before the webinar to help us better understand what you already know and what you’d like to learn.

Thanks to everyone who took the time to call or e-mail their Members of Congress yesterday. But we’re not out of the woods yet!

We need to keep the calls & e-mails coming to ensure that our Members of Congress understand what’s at stake. If Republicans are successful in pushing through staggering, life-threatening cuts to our health care and human services programs – it means more seniors will go hungry or homeless; fewer kids and families will have access to health care; and fewer resources will be available to invest in our nation’s economic recovery. Yet at the same time, the Republicans are stepping up efforts to ensure that billionaires and wealthy corporations will continue to enjoy outrageous tax breaks and loopholes while the rest of the country struggles.

That’s why we need to send a message to our Members of Congress TODAY! Please call or e-mail Senators Dianne Feinstein and Barbara Boxer and your Representative in the House!

Call Senator Dianne Feinstein – (202) 224-3841 / Click here to e-mail
Call Senator Barbara Boxer – (202) 224-3553 / Click here to e-mail
Call your Representative – Click here to find*

*Enter your zip code to find your Representative in the House. To find contact information, click on your Congressional Member and then click the “contact” tab.

Once again — here are some key messages/talking points to help you as well:

• I’m calling/writing to ask that you please continue to stand firm against steep cuts to social security, health care, and other vital programs.
• Deep cuts to critical, life-sustaining programs like these will place seniors at grave risk, make it harder for low-income families to access quality, affordable healthcare, and obstruct our nation’s and our state’s much-needed economic recovery.
• There are more viable and humane solutions out there — allowing tax cuts for the wealthy to expire and institute the Schakowsky millionaire tax rates; end tax credits for the oil industry; and institute a Financial Speculation tax.