Legislative Analyst's Office
Analysis of the 2003-04 Budget Bill
The Department of Community Services and Development (DCSD) administers various programs that serve low-income individuals and families through a network of approximately 200 community-based agencies. Federal programs administered by the department include the Low-Income Home Energy Assistance Program (LIHEAP) Block Grant, the Department of Energy Weatherization Assistance Program (DOE WAP), and the Community Services Block Grant (CSBG). The department also administers California LIHEAP, the Mentoring Program, and the Naturalization Services Program.
The budget proposes no funding for the department in 2003-04, a reduction of $5.4 million compared to 2002-03.
The Governor's budget proposes to consolidate the department's federal programs within the Department of Social Services. This would result in a net reduction of nine positions and a corresponding redirection of $0.9 million in federal funds from state operations to local assistance.
As part of the December revision to the 2002 Budget Act, the Governor proposed to eliminate all state-funded programs administered by DCSD effective July 1, 2003, resulting in General Fund savings of $3.9 million. (These programs include the Naturalization Services Program [$2.9 million] and the Mentoring Program [$1 million].)
The December revision further proposed consolidating the department's remaining programs within the Department of Social Services (DSS) effective July 1, 2003. We are advised that these programs—the federal DOE WAP, CSBG, and LIHEAP block grants—would constitute a stand-alone division within DSS. This consolidation would result in the elimination of nine positions, and a corresponding redirection of approximately $0.9 million in federal funds from state operations to local assistance. Specifically, the community-based organizations that use the block grant funds to deliver various low-income energy, housing, nutrition, and other services would receive an additional $0.9 million (approximately 0.6 percent of total local assistance funding). We believe the Governor's consolidation proposal is workable.