Health Cuts By Governor Schwarzenegger in Signing California Budget Include Prescription Drug Program Touted on "Meet the Press " as a Major Success

By Anthony Wright
Executive Director of Health Access California

Yesterday, Governor Arnold Schwarzenegger signed the 2007-08 Budget, totalling over $145 billion. Due to a standoff by Senate Republicans, the budget was passed on Tuesday, August 21st, over 50 days after the beginning of the budget year. Of particular note was the $703 million in cuts the Governor made using his line-item veto authority.

As the governor and Legislature begin discussions on health care reform, more than half of cuts made in the 54-days-late budget that Gov. Arnold Schwarzenegger signed Friday came from the department of Health and Human Services.

While $332 million of the cuts were simply a re-adjustment in Medi-Cal expectations and will not result in a reduction in services, other cuts would have significant impacts on nascent programs.

Among the cuts:

* PRESCRIPTION DRUG DISCOUNTS: $6.3 million from the California Discount Prescription Drug Program Fund: The Governor zeroed out the money to implement this program that would negotiate with drug companies to provide discounts to uninsured and underinsured Californians. In his veto statement, he directed the Department to identify ways to start the work, but the program is likely to be delayed.

Along with legislation on global warming and minimum wage, the Governor has repeatedly mentioned this program – a result of AB2911 (Nunez/Perata) -- as one of the major successes from 2006, including on multiple appearances on "Meet the Press."

* CHILDREN’S COVERAGE: $66 million to make it easier for children to enroll – and stay enrolled – in the state’s Medi-Cal and Healthy Families Program: There's a range of cuts to children's coverage. This includes cutting the $15.4 million to implement SB437 (Escutia) to streamline enrollment, and also cutting $15 million in funds for county outreach and enrollment efforts. These cuts effectively prevent the state from reaching out to more than 100,000 children who could be enrolled in public programs.

The Governor had a major bill signing ceremony on SB437, and has participated in several events on children's coverage, which remains an element of the Governor's health reform.

* CLINICS: $10 million from the Expanded Access to Primary Care. This cut will decrease access to care for uninsured patients through community clinics.

Comments

Get Email Updates

Want the California Progress Report by email? Once a week, we'll send you the latest and greatest headlines.