VAN NUYS – Assembly Speaker John A. Pérez (D-Los Angeles) was joined by Assembly Budget Chair Bob Blumenfield (D-San Fernando Valley) and health care administrators and nurses at the One Generation Center in Van Nuys today to highlight how proposed state budget cuts are threatening the jobs of hundreds of thousands of Californians, including thousands of Adult Day Health Care (ADHC) workers who seniors, the disabled and other vulnerable Californians rely on for health and assisted living services.
“Eliminating Adult Day Health Care Centers will actually cost the state more than keeping them open because many of the clients of these centers will be forced into expensive nursing care facilities at a cost borne by the taxpayers,” Pérez said. “Legislative Democrats have included funding for Adult Day Health Care programs in our budget proposal because we recognize the value—in both human and economic terms—of providing that assistance in these difficult times. This is clearly the best approach, and I hope the Governor and Legislative Republicans join us in making the right choice for California’s seniors and working families.”
“The proposed elimination of Adult Day Health Care services epitomizes what is wrong with the Republicans’ approach to the budget. It will lead to greater job losses, foolhardy cost shifting, and a painful human cost to our elderly and disabled adults. When the more than 300 ADHC centers around the state close their doors, many people who rely on these services will end up in nursing homes – at more than quadruple the cost to the state. Our California Jobs Budget is a far better and more humane approach that will preserve jobs and maintain crucial services for those who need them,” said Blumenfield.
“I am here today to deliver a very simple message – budget hard-liners in Sacramento, please leave California’s seniors alone,” said Cástulo de la Rocha, President and CEO of AltaMed Health Services, one of California's largest Adult Day Health Care providers. “Eliminating a program that results in a cost to the state and not a savings, increases the unemployment rolls, and forces California to lose millions in lost wages and lost tax revenues cannot be considered a viable proposal.”
More than 7,600 ADHC workers would lose their jobs as a result of the program’s elimination, resulting in $7.6 million in lost income tax revenue, more than $500,000 in lost sales tax revenue and a $30 million reduction in consumer spending in the first year alone. Additionally, about 2,100 Californians would have to give up their jobs and 6,200 would be forced to reduce their work hours to care for loved ones forced out of ADHC. This would result in $10 to $15 million in income tax revenues and $5 million in sales tax revenues in FY 2010-11.
Eliminating ADHC program would force 39,000 fixed-income seniors, disabled people and other Californians into more expensive nursing homes and other state-funded means of care. More than 14,000 are projected to be admitted into nursing facilities within the first year at a cost of more than $93.4 million to the state. In addition, some ADHC patients would shift to other Medi-Cal home and community-based services adding $43.4 million to state expenditures for those programs. Almost 1500 individuals with developmental disabilities would be forced into care administered by the Department of Development Services, as required through the Lanterman Act, at a cost of more than $14.6 million to the state in FY 2011.
CONTACT: Shannon Murphy (916) 319-2408
Website of Speaker John A. Pérez: www.asmdc.org/speaker