State Budget Update: Governor Guts Vital Children’s Programs

Among the most devastating reductions was a $256 million cut to the CalWORKs Stage 3 program, which provides child care services for low-income families transitioning off welfare. The funding loss effectively guts the program, which had been in the crosshairs since the governor proposed eliminating CalWORKs entirely in May.

According to the State Department of Education, the CalWORKs Stage 3 program provided child care services to more than 81,000 children and some 60,000 families during fiscal year 2008-09. The program is essential for families struggling during the current economic downturn.

The drastic move will leave $128 million in federal funds to support existing program services through October 2010. The State Department of Education has instructed Stage 3 child care providers to communicate the termination of services to families currently on the program, as well as to families in Stage 2 who are slated for transition to Stage 3.

Schwarzenegger also slashed $80 million in funding that legislators had restored in their budget to child welfare programs. The move is reminiscent of last year, when the governor vetoed $80 million in general fund dollars meant for services such as foster care, transitional support for youth aging out of the system and efforts to decrease social workers’ caseloads. Coupled with the loss of federal matching funds, the total loss comes to $133 million – an estimated 10 percent of the overall child welfare budget.

Other line-item vetoes affecting young children includes a $25 million cut to regional centers, a $10 million reduction from grants to primary and rural health clinics and a $5 million decrease for Maternal, Child and Adolescent Health programs throughout California.

Additional Reading:

• State Schools Chief Issues Statement on Governor's Veto of Child Care for Working Families

• CWDA Statement on Vetoes: Governor's Vetoes Seal Legacy: Hypocrite - October 8, 2010

• Legislative Analyst Office's Report: Major Features of California's 2010-11 Budget

• Campaign To Save Child Care

• Parent Voices: Save Child Care Now Campaign