California Budget Looks To Be on Solid Footing, but Challenges Remain
Analysts and economists say California's budget likely will remain in line until at least mid-January, although a number of factors could weaken the state's budgetary position next year, the San Jose Mercury News reports.
For example, money from the federal economic stimulus package for health care and other programs will slow down next year, and payments legislators shifted or deferred this year will come due.
The current budget also could be undermined by a lawsuit Senate President Pro Tempore Darrell Steinberg (D-Sacramento) filed challenging more than $400 million in line-item vetoes Gov. Arnold Schwarzenegger (R) made when he signed the agreement in July (Theriault, San Jose Mercury News, 9/28).Â The governor used line-item vetoes to cut:
- $60.5 million from Medi-Cal, California's Medicaid program;
- $52 million from HIV/AIDS programs;
- $50 million from Healthy Families, California's Children's Health Insurance Program;
- $6.2 million from the Department of Aging; and
- $4 million from the Department of Mental Health (California Healthline, 8/11).
Outlook for Fiscal Year 2010-2011The budget deficit for FY 2010-2011 currently is projected at $7.4 billion because of accounting maneuvers and payment deferrals that were included in this year's budget package (San Jose Mercury News, 9/28). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.