State Budget Update: Budget Standoff Breaks Records

If Gov. Arnold Schwarzenegger does not sign a budget by Thursday, California will surpass the record set on Sept. 23, 2008, when a budget was approved 85 days past the July 1 constitutional deadline. And, in addition to lawmakers preparing for November’s elections, Schwarzenegger still has to deal with the more than 770 bills that are awaiting his signature before Sept. 30.

Without a budget in place, the state continues to restrict payments to vendors, including agencies and service providers vital to children 0 to 5. For example, The Los Angeles Times reports that the budget stalemate is costing Los Angeles County community clinics more than $330,000 a day in reimbursements. As a result, clinics have been forced to take out loans and contemplate cuts to staff and services. Among those hard hit is St. John's Well Child and Family Center, a First 5 LA grantee that provides medical, dental, mental health services, case management, health education and social support in South Los Angeles. St. John’s depends on Medi-Cal for about $350,000 each month to cover the cost of many of these services. The clinic has secured a loan from an emergency fund, but must repay it with interest.

In addition, child care providers are also experiencing difficulties because of the budget delays. The San Bernardino Sun noted that, in San Bernardino County and east L.A. County, an estimated 4,000 children receive discounted child care through CalWORKs. Some child care providers that rely on state funding have reportedly stopped accepting children because they cannot afford to provide services without a budget in place.

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