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Budget cut eliminates CalHHS Employment First office funding; agencies say coordination will continue
Summary
The governor's budget permanently removed $1 million to establish an Employment First office, citing prior unfilled positions and statewide operational reductions. CalHHS officials said related coordination will continue through existing departments despite the permanent funding cut.
At a California State Assembly Budget Subcommittee 2 on Human Services hearing, the California Health and Human Services Agency said the 2024‑25 budget permanently removed $1,000,000 that would have funded a new Employment First office focused on competitive, integrated employment for people with intellectual and developmental disabilities.
Deborah Cooper, assistant secretary with CalHHS, told the committee that the cut was part of broader operations reductions taken to address a $47 billion state deficit and followed a government‑efficiency review. “As part of the government efficiency drills … the budget of $1,000,000 for establishing the office of Employment First was eliminated,” Cooper said, adding that the office had not yet been staffed when the reduction was made.
Cooper said CalHHS will continue coordinating with the Department of Developmental Services and the Department of Rehabilitation on projects and employer incentives that support people with intellectual and developmental disabilities even without a new office. She described the decision as one of “right‑sizing” state resources rather than creating a new structure that would carry ongoing staffing costs.
Committee members, including Chair Jackson, said they remained opposed to the proposed cut and urged continued discussions with the administration and relevant department leaders ahead of the May revise. The committee asked staff to work with CalHHS and the departments to clarify which activities currently underway fulfill the functions originally intended for the Employment First office and to identify any gaps that would require new funding.
No formal action or vote was taken during the hearing.
