Gov. Expected To Seek Federal Waivers To Cut State Health Programs
Gov. Arnold Schwarzenegger (R) is expected to ask the federal government for waivers to reduce the number of low-income Californians enrolled in state health care programs as part of a plan to mend an emerging budget gap, KPCC's "KPCC News" reports.
Recent budget projections suggest that the state will face a $21 billion deficit during the next 18 months (Small, "KPCC News," KPCC, 1/4).
Although California currently spends nearly half of its general fund budget on health care and education, it cannot cut funds from these programs without forfeiting billions of federal stimulus dollars.
If the state succeeds in obtaining federal waivers, lawmakers might be able to reduce spending on health programs and other services without losing the federal funds.Schwarzenegger is scheduled to deliver a State of the State address tomorrow and present his budget plan on Friday (Myers, "The California Report," KQED, 1/4). 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.