Capitol and California - Dan Walters
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Dan Walters: Health worker battle stalls California budget action

Published: Wednesday, Jan. 28, 2009 - 12:00 am | Page 3A

Early in this decade, California's labor union leaders trumpeted a sharp uptick in membership after years of relative decline.

It turned out, however, that virtually all of the union growth stemmed from legislation signed by then-Gov. Gray Davis, converting those who helped the aged and infirm with household chores from independent contractors into public employees, thus allowing them to be unionized.

Almost overnight, tens of thousands of what are called "In-Home Supportive Services" (IHSS) workers became eligible for union membership, a bonanza for the Service Employees International Union.

The legislation itself was a case study in hide-the-pea lawmaking. In just one day, it was written and passed overwhelmingly as one of many "trailer bills" to the 1999-2000 state budget with no public hearings or even a clear explanation of what it did.

Senators voted for the measure 31-8 without even having an analysis of its provisions.

It was a classic example of "low-balling," but exactly a decade later, with costs for the IHSS program exploding, it has become a major sticking point in the multi-sided stalemate over how to close the state's immense budget deficit, pegged at $40 billion through June 2010.

IHSS hits two hot buttons – big money and demands from Gov. Arnold Schwarzenegger and Republican lawmakers, some of whom voted for that 1999 bill, for spending cuts and changes in contracting and civil service procedures that union officials and their Democratic allies hate.

The 1999 bill required counties to establish "public authorities" to employ IHSS workers, but the state currently pays their wages and benefits up to $12.10 per hour. IHSS workers, more than half of whom are relatives of those receiving aid, are actually paid from $8 to $14.68 per hour, depending on which county employs them.

Not surprisingly, as a report from the Legislature's budget analyst pointed out last week, IHSS costs have exploded in recent years, jumping by an average of 11.2 percent per year since 2001, and now are a $1.8 billion chunk of the state budget.

Schwarzenegger wants to rein in costs by limiting the state obligation to the $8 minimum wage (plus 60 cents for benefits) and reducing services to some recipients deemed to be less needy. And that, in turn, has sparked militant protests from IHSS workers.

By happenstance, the political angst is occurring as the SEIU is being fragmented by a complex internal battle and allegations of widespread IHSS fraud by Los Angeles County authorities. The union removed the head of its IHSS unit in Los Angeles, Tyrone Freeman, for mismanagement and is engaged in a protracted and very bitter battle with dissidents over a proposal to consolidate in-home workers into one statewide local, eliminating regional subsidiaries.

If nothing else, it illustrates the dangers inherent in jamming dozens of budget trailer bills through the Legislature each year.


Call The Bee's Dan Walters, (916) 321-1195. Back columns, www.sacbee.com/walters.


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