By Mary Tinker

July 2015 | 2015 Summer Newsletter

Finally there is some good news regarding the state budget for IHSS consumer and homecare providers. Governor Jerry Brown and Legislative leaders reached an agreement on the fiscal year 2015-16 budget. It includes restoration of the 7% services hour reduction effective July 1, 2015. The Governor stated “This is a sound, well thought-out budget.” It saves billions of dollars and pays down debt, while directing more resources to schools and low-income Californians.

Here are a few highlights of the budget:

  • Implementation of the first-ever California Earned Income Tax Credit to help the state’s poorest working families
  • Saving for a rainy day–the agreement saves 1.9 billion in the state’s Rainy Day Fund as required by Proposition 2
  • The Governor also called a special session to address financing of Medi-Cal. There are more than four million additional Californians receiving Medi-Cal coverage due to the expansion of health care coverage under the Affordable Care Act.

The state’s current Managed Care Organization (MCO) tax structure fails to comply with new federal requirements, so a new structure needs to be developed to meet the increased need.

The FLSA overtime regulations for homecare workers court decision is expected sometime this summer. There is funding included in the budget to pay for it if the court decides the Department of Labor did not overstep their authority in the regulations.

The Public Authority will post information on its website at pascc.org regarding the final decision and any potential impact for IHSS consumers and providers.

Finally there is some good news regarding the state budget for IHSS consumer and homecare providers. Governor Jerry Brown and Legislative leaders reached an agreement on the fiscal year 2015-16 budget. It includes restoration of the 7% services hour reduction effective July 1, 2015. The Governor stated “This is a sound, well thought-out budget.” It saves billions of dollars and pays down debt, while directing more resources to schools and low-income Californians.

Here are a few highlights of the budget:

  • Implementation of the first-ever California Earned Income Tax Credit to help the state’s poorest working families
  • Saving for a rainy day–the agreement saves 1.9 billion in the state’s Rainy Day Fund as required by Proposition 2
  • The Governor also called a special session to address financing of Medi-Cal. There are more than four million additional Californians receiving Medi-Cal coverage due to the expansion of health care coverage under the Affordable Care Act.

The state’s current Managed Care Organization (MCO) tax structure fails to comply with new federal requirements, so a new structure needs to be developed to meet the increased need.

The FLSA overtime regulations for homecare workers court decision is expected sometime this summer. There is funding included in the budget to pay for it if the court decides the Department of Labor did not overstep their authority in the regulations.

The Public Authority will post information on its website at pascc.org regarding the final decision and any potential impact for IHSS consumers and providers.

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