Mid-Year “Trigger Cuts” Happening in California

Cuts Impact Child Care and Other State Programs

In order to pass a timely 2011-2012 California state budget, the Legislature and the Governor agreed to additional budget cuts, known as “trigger cuts”, that would go into effect if state revenues fell short of economic projections. The Governor’s Finance Director announced on Tuesday December 14th that California revenues are lower than anticipated, and midyear budget cuts are being made.

The cuts will impact thousands of working Californians and vital programs.  Child care programs administered by the state Department of Education are expected to take a $23 million cut, meaning programs will be reduced by 4% across-the-board, meaning slots or enrollment in all child care programs will be reduced by 4%. Other major cuts include: higher education, services for people with developmental disabilities, home health care services, and school transportation.

There is one significant change from the past few years: in past budget bills, family child care providers have taken tremendous hits. This time, however, cuts will be evenly distributed across all programs.  This is due to not enough funding being allocated in the budget passed in June of this year for all families who qualify. Stage 3 families will be transferred to other programs for which they may be eligible, such as centers or networks- or if this isn’t possible, they will be dis-enrolled, starting with families with the highest incomes who receive subsidies.

The cuts mean that Stage 3 services may end for some families in some areas, as soon as early 2012.

The situation will vary widely county to county based on the need of families in areas for Stage 3, and how many families were enrolled by agencies. We do not yet know which agencies will need to move families from Stage 3. The need to move families will exist for the rest of the Fiscal year, through June 30, 2012, unless other funding is found. So far, CDE and the Legislature have not been able to identify funding to allow families to remain in Stage 3 services.

In announcing the midyear cuts, Governor Brown also indicated that further cuts to social services are likely in the 2012 budget he will announce in early January. Provider involvement will be crucial as we move forward into next year and promote the importance of child care to the California economy. Even though child care and development programs have been cut by more than 25 percent, or $784 million, since 2008-09, things would have been much worse providers raising our voices.

“It’s clear our hard work over the last year has made a difference. We must continue to organize so we are certain that the contribution child care providers make to the economy is recognized, and to protect our children from being affected by even more budget cuts in the future.”
– Sheila Fulmer, Family Child Care Provider, Bakersfield, Calif.

Provider involvement was the key to restoring funding for child care services after the veto in 2010, and provider action was the only reason we were able to reduce budget cuts by $337 million in 2011 and prevent Governor Schwarzenegger’s proposal to eliminate all subsidized child care in previous years.

We must also realize that amidst our ongoing budget crisis there is another solution. Year after year, legislative Republicans have stubbornly refused to support increasing revenues through taxing corporations and banks who have returned to profitability. For example, corporations like Home Depot, CVS, and WalMart do not pay their fair share in state taxes, yet their employees receive low pay and must rely on state-funded child care subsidies, health care, and other support. Even billionaires like Warren Buffet and others are calling for taxes on millionaires to be raised.

Yet a minority of Sacramento politicians refuse to raise taxes on the richest people in our state, and instead give tax breaks to wealthy corporations, while working class Californians see jobs and services they rely on cut because the state does not have enough money. In 2012, child care providers, parents, and allies must work to prevent any additional budget cuts and work to ensure Californians vote for badly-needed new revenues in the November election.