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Budget eliminates planned Employment First office; state says coordination will continue

3164539 · April 30, 2025
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Summary

The enacted budget permanently cut $1 million to establish an Employment First office; CalHHS said ongoing coordination with DDS and DOR will continue but the administration lacks resources to staff the new office.

The Assembly Budget Subcommittee 2 on Human Services was told the budget permanently eliminates $1,000,000 proposed to establish an Employment First office intended to support competitive integrated employment for individuals with intellectual and developmental disabilities.

"As part of the enacted 2024 budget ... the budget of $1,000,000 for establishing the office of Employment First was eliminated," said Deborah Cooper, assistant secretary with the California Health and Human Services Agency. Cooper said the reduction was part of broader deficit and efficiency measures that included a 7.95% reduction in operational budgets and elimination of vacant positions.

Why it matters: The Employment First office was intended to coordinate state efforts to help people with intellectual and developmental disabilities (IDD) find and keep competitive integrated employment. Cooper said CalHHS, the Department of Developmental Services (DDS) and the Department of Rehabilitation (DOR) will continue projects to support employment outcomes, but the administration will not staff a separate office because of resource constraints.

Legislative response: Committee members said the item remains a legislative priority and asked the administration to engage with the committee and relevant departments before the May revise to identify ongoing activities that cover the intended functions of the office.

Ending: The administration said it will continue interagency coordination but did not commit to restoring the separate Employment First office; committee staff requested follow‑up engagement with department leadership to clarify activities and costs.