Obama Blocks Harmful Cuts to Homecare Workers

SAN JOSE, CA - In a victory for struggling homecare workers, the Obama Administration has ruled that California's proposed cuts to the In-Home Supportive Services (IHSS) program violate the terms of the federal stimulus aid going to the state.

The ruling came after the Service Employees International Union (SEIU) and its affiliates, including San Jose-based Local 521, requested an opinion from Health and Human Services on whether California's proposed cuts violate a stipulation of the federal Recovery Act, also known as the American Recovery and Reinvestment Act (ARRA).

This is a major victory for California's 250,000 IHSS workers and the 440,000 seniors and people with disabilities who rely on IHSS for daily care, said Kristy Sermersheim, Local 521 President. This will enable counties to maintain their contracts with us without any additional cost. As the largest homecare union in the country, SEIU will be reaching out to our state legislators to work on real solutions for our budget mess.

Citing a $40 billion budget deficit, legislators voted to lower the state's contribution toward homecare worker wages by a staggering 20 percent. The cuts, which would lower the state's contribution from $11.50 to $9.50 per hour, are scheduled to go into effect on July 1, 2009. However, ARRA blocks states from shifting costs to the counties.

The San Mateo Board of Supervisors is threatening to reduce its homecare workers salary by $2 an hour, from $11.50 to $9.50. 

We needed to stand up and cry out, and we did, said Ellen Rollins, of San Jose, who provides care for her daughter, left quadriplegic by a drunk driver. We deal with human life and dignity. I knew this president would not say 'Yes' to what this governor proposed.

In a ruling issued this week, the Obama administration's Centers for Medicare and Medicaid Services said that California's cuts to state funding for IHSS are out of compliance with the requirements of the federal Recovery Act for receiving enhanced Medicaid funding.

ARRA has already made available close to $2 billion to California. The funding provides much needed financial assistance for counties struggling with huge budget deficits.

California's In-Home Supportive Services program provides vital services to many of California's most vulnerable citizens. Local 521 has approximately 15,000 homecare workers in Santa Clara and San Mateo counties.



In the press:
Los Angeles Times, May 8, 2009: U.S. threatens to rescind stimulus money over wage cuts
The Obama administration threatens to rescind billions in stimulus money if Gov. Schwarzenegger and lawmakers do not restore wage cuts to unionized home healthcare workers.