LAKEPORT >> The fate of several local programs, which depend in large part on federal funding, hangs in the balance as Congress weaves through its complex budgeting process. While negations remain in a state of flux and continue to complicate setting a final Fiscal Year 2025 budget for various departments overseen by the Lake County Administration Office, the Board of Supervisors received data on Tuesday in regards to how difficult it would be to backfill funding for child care, assistance for needy families, Medicaid, Medicare and a myriad of other programs, should the President sign the proposed budget next month.
Approximately 60% of the Social Services Department’s annual budget is provided by the federal government, SSD Director Rachael Parsons informed the Board of Supervisors at their regular meeting. Parsons reminded the board it is her obligation to secure for every county resident eligible, the amount of aid to which they are entitled. However, “SSD’s mission is to promote social and economic self-reliance and protect those who are at risk,” Parsons said. “Today I’ll share data of what Lake County looks like, including funds that currently come into our county and look at some of the changes which does not cut anybody out, but does impact service delivery for the people we serve.”
SSD also examined the federal budget which includes information regarding California’s funding. With the U.S. and California facing substantial deficits, cuts to programs and even layoffs of staff are possible. The federal and state cuts will put Lake County’s most vulnerable, seniors, disabled, families and children at risk, cautioned Parsons. Meanwhile, the federal government has been funded on a piecemeal basis through a Continuing Resolution (CR), while they work on finalizing the FY2025 bill. “The CR is when the House and Senate come together and agree to a final budget to put before President Donald Trump for his approval,” Parsons said. But there is a lack of specifics in the federal budget, which is likely to allow for negotiations, yet makes less clear what the Congress will cut from Medicare and Medi-Cal,
Parsons was quick to point out: 50% of Lake County residents receive Medi-Cal, 25% get CalFresh, $3 million per month for SNAP, 892 families aided by CalWORKs, $900,000 per month for Temporary Assistance for Needy Families, 2,716 residents receive IHSS benefits, disbursed from a monthly $6 million allocation, 189 HUD Section 8 vouchers for $145,000 allocation and 17,895 seniors receive monthly meals, so there is a lot at stake, Parsons noted.
She further cautioned, the tariffs, the Trump Administration is calling for, could possibly trigger a recession and so, funding for county programs and personnel could be impacted. Realignment funding is likely to decrease, and realignment funding is the only, ‘back-fill’ as a result of lessening federal support
Some of the above cuts have already started. Layoffs for county program staffers is anticipated to be 25% to 38%. This will manifest itself in funding delays, program disruptions (fewer employees). Another consequence is that day long services for adults may not continue, and people will have to fend for themselves.
Amada Gonzalez, a local realtor, is the executive director of the Lucerne Alpine Senior Center, who testified to the board. The Center is more than just a place to go, it serves as a lifeline, Gonzalez noted. “We provide a safe and happy environment, and they get home-cooked meals,” she said. “They remain independent and experience cognitive improvement through their daily socialization.”
Lisa Morrow is the executive director of Lake County Family Resource Center, which administers the Lakeport Senior Center. She testified that their clients are served meals, play board games, line dance and practice Tai Chi. “But we cannot sustain service without receiving Older Americans Act (approved by Congress 1965) reimbursements,” she said. “Our most vulnerable can face malnutrition. and preventable hospitalization. Lake County has one of the highest percentage of seniors in California and need for services is growing.”
District 2 Supervisor Bruno Sabatier expressed appreciation for Parson’s thorough work yet noted that with the current federal and state budget situation changing weekly, or even reverting to a prior plan, “it’s difficult to track exactly where the county stands in order to appropriately prepare for the coming fiscal year. I’ve never seen anything like this,” he said. “We talk to those representing the entire nation; they’ve never seen anything like this before. But we have a community that has a lot of needs- our poverty rate creates that; our lack of opportunity creates that. However, I’m seeing things coming across this board- I don’t know how sustainable it is for what we are doing.”
He pointed out with all the fire resiliency and Clear Lake water quality mitigation the county plans to intervene with, the board still must contend with the fact, it does not control the state budget. “The numbers are not getting better, I don’t see this changing, maybe two years down the road.” He added, eventually the board will prioritize a specific program over another program and the county would love to see the support of Sacramento and Washington D.C. because the need is so grand. Sabatier also noted the county talks about advocacy, but he inquired of Parsons, if there was a Plan B?
“I don’t want to scare other people what Plan B might turn out to be, worst case scenario to contemplate, how long can we survive without federal funding?” she said. “The answer is two months. As you said, it’s up in the air for now. Until things are more solidly known, like the passing of the federal budget, it is difficult to plan for the unknown.”
She went on, for instance to point out the prospects for Medi-Cal funding losses, yet she said this is already on the state legislature’s radar. But some of the state’s optional programs, which California elected to enact, funds will probably go away. For non-citizens that could mean no expansion of the Affordable Care Act. She also noted that the federal government has considered reverting back to “classical medical care coverage,” one focused on the aged, blind and disabled.
“We’re talking about a potential rollback instead of expansion of the next level of care,” she said. “So, with CalFresh, we’re talking about cuts to move the benefit levels back to pre-Pandemic levels, which are concerning, given the rising cost of food. Another impact, you can offer a waiver, if unemployment levels are high enough.” California levels would qualify, therefore work requirements to receive benefits have been waived. And as for Medi-Cal, work requirements have been implemented for most recipients. But not much more can be planned until the federal budget is resolved. Sabatier said there needs to be an understanding of what the strategic plan is with a specific set of options. “I am hoping by June we can get an idea of what options we’re looking at.”
Parsons noted even with cuts, the county departments can still use their realignment funds to pay for services that might have slipped through the cracks of budget planning. However, Sabatier cautioned use of realignment funds, “is like robbing Peter to pay Paul and they must figure out a way to pay for the county’s needs.” He suggested some departments could be consolidated under one roof in order to reduce costs. “We need to hash these out with the board, and we’ll have a better understanding what the options are and pull lit out as we are prepared for,” he said.
