State Budget Crisis and the Special Election

It is no secret that California is in the midst of a budget crisis. According to yesterday’s San Francisco Chronicle, the state will have to borrow more than $20 billion dollars if legislators cannot close the multibillion-dollar deficit. Most analysts predict that this deficit will then worsen if voters reject the special election budget-related ballot measures on May 19^th.

According to the Chronicle article, “without sufficient cash, the state may … delay or defer scheduled payments to … service providers and vendors,” a group which includes Sunny Hills Services. The California Alliance of Child and Family Services (CACFS) recently sent a memo to member agencies about this potential crisis. An excerpt from that memo is below:

“A recently conducted Field poll shows that five of the six ballot measures scheduled for the May 19 special election are opposed by a majority of likely voters, a situation which, if it plays out, could leave state and local governments with no options except to make draconian cuts to government expenditures, including those for education, foster care, juvenile justice and children’s mental health …

Skepticism about the proposed initiatives extends to the state’s Democrats who, at their convention Sunday April 26, failed to endorse Proposition 1A which garnered the support of 58% of the delegates, 2% short of the 60% supermajority needed for it to succeed.

The party did endorse Propositions 1B, 1C and 1F, but stayed neutral on Propositions 1D and 1E. The California Alliance is opposed to 1D and E which would redirect funds from the Mental Health Services Act and First 5 to temporarily supplant state general fund support for core children’s services.

If the propositions don’t pass [there is] not much on the horizon in terms of a Plan B for the state budget … As in January and February when state cash flow was a critical issue, Alliance member agencies are strongly encouraged to talk with their contracting county departments to determine their plans should the propositions go down to defeat.”