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.
