Davis’ Budget Does Not Cut Deep Enough, Legislative Analyst Says
Gov. Gray Davis' (D) revised budget proposal, released earlier this week, does not make "deep enough" cuts and could lead to a $4 billion shortfall in the second half of 2002, according to a report from the Legislature's top budget analyst, the San Francisco Chronicle reports. Analyst Elizabeth Hill yesterday said that Davis' $102.9 billion budget contains one-time cuts, while the "state's cash shortfall will continue into next year." Hill added, "You need reductions in ongoing expenditures to balance the budget. You need ongoing spending solutions to address that" (Lucas, San Francisco Chronicle, 5/17). Hill said that "one-time fixes" will not be an option next year, and "natural" growth in some state programs, including Medi-Cal, will "lead expenditures to outstrip the cash available to the state by $4 billion," or 5% of the general fund (Hill, Sacramento Bee, 5/17). Davis' revised budget included reductions in some heath services, including a $219.1 million decrease in total Medi-Cal expenditures for the current year and a $10 million decrease in family planning and teen pregnancy prevention programs (California Healthline, 5/17). The Legislature is expected to approve the budget by June 15 (San Francisco Chronicle, 5/17).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.