POLICY BRIEF. Critical Choices, Critical Impact: How California budget shortfalls impact Asian Americans and Pacific Islanders

Transcription

1 POLICY BRIEF Critical Choices, Critical Impact: How California budget shortfalls impact Asian Americans and Pacific Islanders Prepared by Sara D. Sadhwani & Hala Masri 1145 Wilshire Blvd., Second Floor Los Angeles, CA (213) Fax (213) A partner organization of: The California Immigrant Policy Center (CIPC) & Asian Americans for Civil Rights & Equality (AACRE)

2 1145 Wilshire Blvd., Second Floor Los Angeles, CA (213) Fax (213) Governor Schwarzenegger s Budget Proposal Hoping to close a $41.6 billion deficit, Governor Schwarzenegger released his budget plan on December 31 st that combines his previously proposed funding cuts with additional reductions for the coming budget year. Threatening the well-being of low-income immigrants, Asian Americans and Pacific Islanders in times of economic hardship, the Governor s proposal greatly reduces or completely eliminates critical living assistance, health and nutritional services. Governor s Proposed Threats to Critical Living Assistance for Low-Income Seniors and Working Families: Supplemental Security Income (SSI)/State Supplementary Payment (SSP) Programs Decreased assistance through the reduction of the State Supplementary Payment (SSP) to its federally required minimum and the suspension of its 2010 Cost of Living Adjustment Cash Assistance Program for Immigrants (CAPI) Complete elimination of the CAPI program, which serves as a lifeline of living assistance for lawfully present elderly, disabled or blind immigrants California Work Opportunity and Responsibility to Kids (CalWORKs) Program Reduction of assistance by suspending the 2009 Cost of Living Adjustment Elimination of benefits after 60 months of assistance to children whose parents are not program participants Reduction of grant levels to low-income families by 10% Governor s Proposed Threats to Vital Health and Nutrition Services for Vulnerable Californians: Medi-Cal Exclusion of lawfully present immigrants from full scope medical care Elimination of Medi-Cal s optional health services, including chiropractic care, adult dental, vision, psychology and acupuncture Possible reduction of eligibility for two-parent households and new Medi-Cal participants Mental Health Managed Care Services in California Shift of voter-designated funds to mental health managed care services. The proposal is subject to voter approval. California Food Assistance Program (CFAP) Complete elimination of the CFAP program, which makes vital food assistance available to lawfully present immigrants

3 1145 Wilshire Blvd., Second Floor Los Angeles, CA (213) Fax (213) POLICY BRIEF CRITICAL CHOICES, CRITICAL IMPACT How California budget shortfalls impact Asian Americans and Pacific Islanders A fiscal downturn impacts all of our state s residents. Unfortunately, when shortfalls result in cuts to the state budget, low income communities and immigrants in particular, take the brunt of the burden. For Asian Americans and Pacific Islanders (AAPIs), cuts will have significant impact, cutting off vital lifelines of support and services key to the success of communities. Constituting 13% of the state s total population, AAPIs have been negatively impacted by these targeted cuts. Unfortunately, numerous AAPI ethnic groups have per capita incomes below the state average. For example, more than 50% of Hmong, more than a third of Cambodians and nearly a third of Laotians live in poverty. 1 Programs that assist low income immigrants lawfully residing in California are a necessity. Many of these programs were created in the mid- 1990s after draconian federal legislation barred immigrants from accessing federally funded programs for the first five years of residency in the United States. Recognizing the importance of healthy communities, Californians chose to cover the basic needs of many of the most deserving members of our communities, with the recognition that hungry children or ailing seniors do not represent an ideal society. Unfortunately, in the current crisis, proposals from the Governor s office attempt to slash funding to programs essential to the livelihood of many AAPI communities. In his state budget proposal, Governor Schwarzenegger sought to address a revenue shortage of $16 billion, by making 10% funding cuts to most state departments, which would result in harsh cuts to a number of California s critical services. In his budget, the governor has proposed the outright elimination of many services available to immigrants such as the elimination of the Cash Assistance Program for Immigrants and California Food Assistance Program and to cut off legal permanent residents from accessing full scope Medi-Cal benefits. The problems our economy faces are greater than just a budget deficit. As the state s economy continues to deteriorate, many Californians are faced with the difficulty of making ends meet. Since 2007, California s unemployment rate has continued to rise 2 and is currently the third highest rate in the nation. In addition to fluctuating oil prices, which impact Californians at the pump, food prices have shot up 7.6% between September 2007 and September Given this environment, Californians are experiencing a time of growing need and many moderate to low-income households are turning to income support and related programs. Targeting lower-income Asian Americans, Pacific Islanders and other immigrant communities in an attempt to close the budget gap is unfair. Proposed reductions in social service programs will create additional obstacles for these communities to achieve self-sufficiency and will exacerbate the economic downturn, bringing further detriment to vulnerable families and communities. Rather than continuing to siphon off resources to our state s most vulnerable communities, the state must identify ways of raising revenues. Cash Assistance Program for Immigrants (CAPI) The federal Supplemental Security Income (SSI) and the State Supplementary Payment (SSP) programs provide cash assistance to low-income seniors and blind and disabled individuals. The Cash Assistance Program for Immigrants (CAPI) grants benefits to California s lawfully present

4 residents who are ineligible for SSI. Benefit levels under CAPI are fixed at $10 per month less than SSI/SSP grants. CAPI At-a-Glance Established: 1998 Target Population: Elderly, disabled or blind lawfully present immigrants ineligible for SSI benefits due to federal 5 year bar Estimated Expenditure in 08/09: $111.2 million Average Monthly Grant: $ Total Recipients FY 07/08: 9,728 AAPI Recipients FY 07/08: 32.7% Applications Received FY 07/08: 2,813 Applications Approved FY 07/08: 313 CAPI, established under Republican Governor Pete Wilson, serves approximately 10,000 lawfully present immigrant seniors and individuals with disabilities. The cash aid an average monthly grant of $ helps pay for basic necessities such as housing, food and clothing 4. For many of the program s recipients, CAPI grants serve as an essential means of support. Throughout its tenure, this program has consistently received bi-partisan approval because it has widely been seen as a way to keep vulnerable communities from going hungry or becoming homeless. In 2002, the California Department of Social Services (CDSS) released a report of the demographic and caseload data of the CAPI program. They found that over 98% of CAPI recipients were 65 years or older, and that 64% of recipients were female 5. They also found that over 90% of CAPI cases reside in three southern counties (Los Angeles, Orange, San Diego) and five northern counties (Alameda, San Francisco, San Mateo, Santa Clara, and Contra Costa). According to July 2008 data released from CDSS, 32.7% of CAPI recipients were AAPI, including significant numbers of Chinese, Filipino, Vietnamese and Asian Indian recipients 6. Additionally, from 1990 to 2000, the proportion of Asian American seniors to the general older population in the U.S. nearly doubled. By 2030, the proportion of older Asian Americans is expected to double once again. 7 Thus, cash assistance grants continue to be a crucial lifeline for a diverse range of older AAPI communities. A cut to CAPI, or its complete elimination may be the difference between life and death for many of the program s recipients. California Food Assistance Program (CFAP) The Supplemental Nutrition Assistance Program (SNAP) receives both federal and state funding. State and federal cuts to SNAP will affect the quality of nutrition assistance that participants receive. In contrast, the purely state-funded California Food Assistance Program (CFAP), created in 1997 under Republican Governor Pete Wilson, offers assistance to lawfully present immigrants ineligible for federal food stamps due to the 1996 welfare reform bar. The economic downturn has increased the need for food aid amongst all low income residents, as food prices have increased and incomes declined. Between September 2007 and September 2008, the number of Californians receiving CFAP benefits rose by 16.2%. Similar increases are found in the enrollment of the federally funded SNAP program. In Los Angeles, Limited English Proficient (LEP) families are twice as likely to have trouble accessing food as those who are fluent in English. 8 According to CDSS figures, approximately seventy percent of CFAP recipients are in low-wage working families 10, many in mixed-status Nearly half (43%) households. Thus, of all AAPI while CFAP communities in Los recipients may be lawfully residing Angeles County are immigrants, the food LEP 9. aid provided by CFAP impacts the well-being of citizen children. In October 2008, CFAP assisted more than 24,000 individuals with an average monthly benefit of $ Unfortunately, little information is available about the exact demographics of the program. However, aggregated data between CFAP and SNAP shows that of all recipients receiving nutrition

5 assistance, 8.5% are non-citizens. Also, 12.9% of all participants are AAPI, including many members of the Vietnamese community. Vietnamese make up 3.7% of all food aid recipients. Lastly, 68.4% of food assistance participants are children. Medi-Cal Medi-Cal provides 6.7 million low-income Californians with free or lower-cost medical insurance. Numerous proposals have sought to make cuts to the Medi-Cal program, including the out-right elimination of services to legal permanent residents. All of the proposed cuts would have detrimental impacts on Asian American and Pacific Islander communities. According to a 2004 report from CDSS, 10% of all Medi-Cal participants are AAPI. Furthermore, 38.4% of AAPI participants are 20 years of age or younger, and 23.8% are 65 years of age or older. 12 Medi-Cal Participan ts Seniors and Children Adults Years of Age Cost-saving proposals have included reducing reimbursement rates to Medi-Cal providers. However, California already reimburses providers at some of the lowest rates in the nation. Insufficient payment rates make doctors lose money and therefore discourage them from offering Medi-Cal services. With lower-income neighborhoods already experiencing shortages of quality hospitals, clinics and doctors offices, reduced reimbursement rates will further decrease participants access to Medi-Cal benefits. Budget proposals have also sought to reduce optional benefits now available to participants. Services, including chiropractic care, adult dental, optometry, psychology and acupuncture, will be excluded from the program. Due to the expense of dental services, many low-income AAPIs already rely on community clinics to access dental care. If Medi-Cal participants also are stripped of dental services, they will encounter huge barriers to accessing quality preventative and comprehensive care, such as dental implants or surgery. Additional proposals to reduce cost have been made to reinstate quarterly income reporting requirements for children and families. Increased requirements ensure that many participants Our Dental Clinic patients come in for preventive, basic dental care and comprehensive dental visits. Currently, we don t have the capacity for services beyond our scope of work such as dental surgery or implants. We refer those patients to County Hospital when it's necessary. Purple Hsu Chinatown Service Center Los Angeles, CA who are not able to stay up to date with income reporting standards will fall off the program. However, this strategy runs counter to the goal of Medi-Cal. Kicking low-income Californians off of Medi-Cal a lifeline for millions lacking quality healthcare coverage is not a humane or long term solution. In-Home Supportive Services The In-Home Supportive Services (IHSS) program provides domestic assistance and medical care to low-income Californians who are over 65, disabled or blind. In October 2008, IHSS served 432,448 individuals. 13 According to a 2002 report put forth by CDSS, 51% of program participants are disabled. Seniors comprise 47% of the IHSS program, and 2% of participants are blind. CDSS data also demonstrates that AAPIs constitute 16% of IHSS participants, 74% of whom entered the program over the age of 65. Among Asian Americans and Pacific Islanders who partake in the program, 85% speak a primary language other than English. Additionally, 87% of Limited English Proficient participants are foreign born. 14 Consequently, the In-Home Supportive Services program is a vital resource that enables AAPI immigrant seniors to maintain their quality of life in their own homes. Spending reductions proposed to the In-Home Supportive Services program would decrease the

6 hours of service available to low-income seniors, blind and disabled individuals. These budget proposals would deny thousands of people their independence and high quality of life, effectively forcing them out of their homes and into costly institutions. CalWORKs The California Work Opportunity and Responsibility to Kids (CalWORKs) program provides cash assistance to needy families. Several proposals have pursued extensive cuts to the CalWORKs program, including substantial reductions to benefit levels and kicking children off of assistance whose parents are not program participants. Between September 2007 and September 2008, an average of 2,243 families joined CalWORKs each month, contrasting greatly from an average monthly decline of 508 families between September 2006 and September As the state s economic condition worsens, the need for basic living assistance will increase. However, the proposed reductions to CalWORKs and those already approved for the budget will result in decreased assistance and increased barriers for low-income families. To highlight the severity of this trend, since the early 1990 s, California s spending on welfare services has decreased by 25%, and welfare funding has remained flat since Budget proposals seeking to reduce CalWORKs funding will critically impact low-income children, many of whom are part of immigrant families. According to a 2004 report released from CDSS, children constitute 77.4% of CalWORKs participants. Additionally, English is not the primary language of nearly a third of heads of households participating in the program. 18 In effect, cuts to CalWORKs punish vulnerable children and target immigrant families struggling to achieve self-sufficiency. Naturalization Services Program The Naturalization Services Program (NSP) grants funds to community-based organizations to assist foreign born individuals through the naturalization process. In the State Budget, funding for the small but effective program was eliminated for the budget year through a line item veto. At the time that its funding was zeroed out, NSP maintained a budget of $3 million and provided grants to 32 communitybased organizations across the state that offered naturalization assistance. As a fully funded program, NSP operated on a $7 million budget and served 96,865 individuals between 1998 and In California, 45% of Asian Americans and Pacific Islanders are not yet citizens. 20 NSP provided this population with critical services that enabled seniors and families who lacked the resources to secure naturalization assistance on their own. Constituting one quarter of our state s workforce, immigrants strengthen our economy through their entrepreneurship and enrich our communities through their daily contributions. To advance the full civic and political participation of California s immigrants, funding for NSP must be restored to ensure that the costly and intimidating naturalization process is once again accessible to the Asian American and Pacific Islander community. Bridging the Gap Since the early 1990 s, California s spending on welfare services has decreased by 25%, and welfare funding has remained flat since In the coming days and months, California will have to make critical decisions to address our budget crisis. Year after year, our fiscal woes result in slashed and shriveled state spending, costly borrowing, diverted funds, and provisions that strip our state of corporate tax revenues. However, California s budget deficit has not only persisted, it continues to escalate. To prevent a financial meltdown, new and effective solutions are needed to boost state revenue and infuse funds into our already suffering economy. Revenue-raising solutions will protect vital safety net services, restore stability to the General Fund and strengthen our state, its principles and its future.

7 11 Asian Pacific American Legal Center, The Diverse Face of Asians and Pacific Islanders in California. February Available 2 California Employment Development Department, California Labor Market Review, November Available 3 California Budget Project, Proposed Budget Cuts Come at a Time of Growing Need, December Available 4 California Immigrant Policy Center, Cash Assistance Program for Immigrants (CAPI) November Available 5 California Department of Social Services, Cash Assistance Program for Immigrants: Demographic Caseload and Expenditure Data on Recipients Participating in the Cash Assistance Program for Immigrants. June Available 6 California Department of Social Services, Annual Recipient Report on CalWorks, Foster Care, Social Services, Non-assistance Food Stamps, Welfare to Work, Refugee Cash Assistance and the Cash Assistance Program for Immigrants Available 7 U.S. Census Bureau, 65+ in the United States: December Available 8 Urban Institute, How Are Immigrants Faring After Welfare Reform? Preliminary Evidence from Los Angeles and New York City. March Available 9 Asian Pacific American Legal Center, The Diverse Face of Asians and Pacific Islanders in Los Angeles County. February Available 10 California Department of Social Services, California Food Assistance Program Total, Public Assistance and Nonassistance Households Annual Average Fiscal Years 1989/ /06. October Available 05_06.pdf 11 California Department of Social Services, Public Assistance Facts & Figures. October Available 12 Department of Health Care Services, California s Medical Assistance Program Statistical Report Calendar Year Available alreportcalendaryear2004.aspx 13 California Department of Social Services, Public Assistance Facts and Figures for the Month of October October Available 08.pdf 14 California Department of Social Services, In-Home Supportive Services Recipient Report. June Available pdf 15 California Budget Project, Proposed Budget Cuts Come at a Time of Growing Need. December Available 16 Western Center on Law and Poverty, CalWORKs Suffers a 20% Cut in Governor s Budget. January Available CalWORKs_Suffers_a_20_Cut_In_Governors_Budget?tab= pane_search-results-2 17 Western Center on Law and Poverty, CalWORKs Suffers a 20% Cut in Governor s Budget. January CalWORKs_Suffers_a_20_Cut_In_Governors_Budget?tab= pane_search-results-2 18 California Department of Social Services, CalWORKs Characteristics Survey: Federal Fiscal Years 2003 and Available 3_04.pdf 19 Department of Community Services and Development, Naturalization Services Fact Sheet. May Available %20Program.aspx 20 U.S. Census Bureau, Census Available