Lawmakers Weigh Side Effects of Governor’s Budget Plan
An Assembly analysis released this week determined that Gov. Arnold Schwarzenegger's (R) proposed spending cuts for health care programs would lead to a significant loss in federal matching dollars, a prospect that drew strong opposition from Assembly Speaker Fabian Núñez (D-Los Angeles).
The governor's fiscal year 2008-2009 spending plan calls for cutting about $1.1 billion in state funds from Medi-Cal and $49.1 million from Healthy Families, California's version of the State Children's Health Insurance Program.
However, both programs would see deeper funding cuts because the state would receive fewer federal matching funds.
The news elicited criticism from Núñez, with whom Schwarzenegger negotiated a health care reform bill (ABX1 1). In a Sacramento Bee opinion piece, the Assembly leader asked, "How can we make the case for California ever getting our fair share" of federal funding "if we blithely turn away what little money is coming our way?"
Meanwhile, Sen. Dave Cox (R-Fair Oaks) joined other Senate Republicans this week in seeking passage of alternative health care reform measures.
Cox failed to win approval of a bill that would have asked voters to approve using unspent funds from First 5 California to reduce the budget deficit and cover the cost of some health care programs. First 5 administers proceeds of a state tobacco tax increase to fund health care and education programs for children ages five and under.
Action on other health care measures by Senate Republicans is highlighted below.