Latest News On State Budgets

Latest California Healthline Stories

‘California’s Budget Situation Has Improved Sharply’

Yesterday’s long-term budget forecast for sunnier skies in California by the Legislative Analyst’s Office could also mean good things for the state’s health care programs, according to the LAO and health experts.

“For the first time in a decade, we’ve stabilized our budget problem,” said Mac Taylor, head legislative analyst at the LAO. “We are looking at a much more positive outlook in the future. This is nothing like we’ve had to look at in the past.”

The state still faces a $1.9 billion deficit for the fiscal year 2013-14 — that’s about half current shortfall and half operating deficit for next year, according to Taylor — but that is just the current projection and could shift, based on a number of factors, Taylor said.

Budget, Special Session, Exchange Votes on Tap

November and December are supposed to be off-time for California lawmakers, but not this year.

This week, the Legislative Analyst’s Office is expected to release its budget forecast. Also this week, the Health Benefit Exchange board will vote on submission of its federal establishment grant. A number of health reform guidelines are expected to be released soon by federal health officials who are also dealing with a deadline this week for states to declare whether or not they will form their own exchanges.

California’s exchange board will meet Wednesday to vote on submission of its establishment grant. That will effectively lay out the exchange’s marketing, outreach and IT plans for its health insurance offerings,  now know as covered California. The exchange board also will take action on regulations for qualified health plans.

Budget Expert Unfazed by Supermajority

Fears that the Legislature might spend money faster than a speeding bullet are unfounded, despite the possibility that the Democrats in Sacramento could have a two-thirds supermajority in both houses, according to Chris Hoene, executive director of the California Budget Project.

However, if election results in several key races too close to call go in Democrats’ favor, the new supermajority could have an impact on health care policy, particularly cuts to health care, Hoene said.

“I think from a budgetary perspective, the big implication is that the approach to balancing the budget wouldn’t be a cuts-only approach,” Hoene said. “We might not be talking about just cuts as a way to move forward.”

Prop. 30 Could Stem Health Care Cuts

Lawmakers and health care experts around the state may not know what to make of it if this turns out to be the first January in a long time without significant new cuts to health care services and programs in California.

Although revenues from Prop. 30 will help fund education, if it hadn’t passed on Tuesday, the Legislature would be facing yet another massive budget shortfall and lawmakers would need to look at cutting many more millions of dollars. Health care programs and services would’ve been on the chopping block once again, according to Steve Green, president of the California Academy of Family Physicians.

“People didn’t want to think about all of the slashing and burning that would take place if Prop. 30 didn’t pass,” Green said. “It’s a tremendous relief, knowing that millions of dollars aren’t going to be cut out for the poor again. So not having to cut so much, that will help us focus more on the things that need to happen. When you’re in a crisis mode all the time, that makes it much harder to plan for the future.”

Health Care on California Ballots, Directly and Indirectly

California voters will deal directly and indirectly with health care issues in next week’s elections. On city and county ballots, voters will decide issues ranging from soda taxes to medical marijuana laws. Statewide propositions have potential for indirect but significant repercussions for health care.

Debating Health Care Effects of Prop. 31

Proponents of Proposition 31, which calls for restructuring state and county political systems, say it would improve California’s health care system. Health care advocates worry it might have the opposite effect.