LAO finds “Critical Juncture” in the unwinding of CCI
March 2, 2017
In a report released Monday, the Legislative Analyst’s Office examines the Coordinated Care Initiative (CCI) and the “critical juncture” for the program as it faces elimination by the Governor. After providing an overview of the CCI , the report turns to the release of the Governor’s 2017-18 budget, which reported that the CCI generated net General Fund costs in 2016-17 and 2017-18, and concluded that the major factor leading to net costs rather than net savings was the county In-Home Supportive Services (IHSS) Maintenance of Effort (MOE).
The Governor’s budget proposes the continuation of certain components of the CCI, but forces the cessation of the county HSS MOE starting July 1. This will lead to a significant cost shift back to counties of over $600 million in 2016-17 alone. The LAO report concludes that this cost shift will create “significant short- and long-term fiscal challenges for counties,” and notes that 1991 Realignment revenues will not be sufficient to cover counties’ increased IHSS costs. The report suggests that the Legislature may consider providing counties with some form of fiscal relief, in both the short- and long-term. For more details, please read the report here.