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A Bad Time for Budget Cuts to California’s Aged, Disabled, Poor, and Uninsured

New Census Data Shows California Incomes Decline, More Without Health Insurance, Poverty Rate Up

By Frank D. Russo

The latest numbers are just in from the United States Census Bureau. According to analyses from the California Budget Project (CBP) they show that for low and middle income Californians there has been a decline in the real (inflation adjusted) household income. A separate analysis by Health Access California shows that more Californians are uninsured for health care—a trend that is contrary to that of the United States as a whole.

Today's data raises important policy and value questions as the California legislature is at an impasse over our state’s budget and some are proposing balancing it by making cuts in health care and programs designed to help those who are in distress.

According to the California Budget Project’s number crunching in “2007 Incomes Declined, Poverty Increased”, today’s data shows that:

• California's inflation-adjusted median household income - the income of the household exactly at the middle of the distribution - fell to $55,734 in 2007, down by $1,154 (2.0 percent) from the previous year and down by $634 (1.1 percent) from its 2000 level, after adjusting for inflation. However, these declines are not statistically significant.

• Income trends in California contrast with those nationally. The inflation-adjusted US median household income increased by $665 (1.3 percent) between 2006 and 2007, reaching $50,233. However, the national median household income remained $324 (0.6 percent) below its 2000 level, after adjusting for inflation.

• Nearly 4.6 million Californians (12.7 percent) had incomes below the federal poverty line in 2007, up from approximately 4.4 million (12.2 percent) in 2006; however, this increase is not statistically significant. California's 2007 poverty rate was the same as in 2000.

• California's 2007 poverty rate was 0.2 of a percentage point higher than the national rate - a reversal from 2006, when the share of Californians with incomes below the poverty line fell below that of the US as a whole for the first time since the late 1980s.

• The share of California's children living in families with incomes below the poverty line declined slightly from 18.1 percent in 2006 to 17.9 percent in 2007; however, this decline is not statistically significant. California's 2007 child poverty rate was 1.3 percentage points below its 2000 level.

The CBP also says that more recent data suggest that low- and middle-income Californians will continue to lose ground in 2008. They note that California's unemployment rate has increased steadily over the past 20 months, reaching 7.3 percent in July - its highest level in 12 years and that as the job market weakens, more Californians are relying on the state's income support and related programs to help make ends meet. In particular, they mention the number of California families enrolled in the CalWORKs, Food Stamps, and Healthy Families programs which have increased considerably during the last year.

"What low- and middle-income Californians gained in 2006, they began to lose in 2007, and they're likely to continue to lose in 2008," said Alissa Anderson, deputy director of the CBP. "The current downturn points to the importance of having a strong safety net in place for families to rely on during tough economic times."

Health Access California, the statewide health care consumer advocacy coalition, reports that the data shows that the number of Californians who find themselves without health coverage increased last year. They say: “Nationally, significant declines in private coverage--in both employer-based and individually-purchased plans--were offset by public programs picking up coverage. But unlike the nation as a whole, which has a small decrease in uninsured, the California's rate of uninsured inched up to 18.6%.”

According to Anthony Wright, Executive Director of Health Access, "Californians are more likely to be uninsured than residents of all but six states. Our public programs are valiantly trying to pick up the slack from the erosion of private coverage by employers and individuals. But now this budget crisis threatens to make severe cuts in the public programs that are the last hope for so many Californians."

Wright said, "We need to be expanding these successful public coverage programs now, not cutting them at exactly the time that Californians need them most. The proposed cuts could leave as many as one million more Californians uninsured, to devastating effect to the health system on which we all rely."

He concluded,"California should be a leader, not a laggard. We see states that have made reforms, from Massachusetts to Hawaii, with dramatically lower uninsured rates, as a direct result of their distinct state policies, some new, some in place for decades. We know how to solve these problem, if the political will is there."

Wright identifies the six states with a higher percentage of uninsured residets than California as Texas, New Mexico, Florida, Arizona, Louisiana, and Mississippi.

Posted on August 26, 2008

Comments

Funny how they always seem to have enough money to keep kids in foster care even though they have perfectly good families wanting to care for them outside the State of California. Perhaps you could explain that.

I live in Canada and make a very good living here. I have no debt, live in a gorgeous place with an incredible view. I work from home most of the time. I have no criminal record. You would think they would release my son who has been a slave of your system since he was 6 yrs. old.

Common sense will tell people that the California foster care system was not designed to protect children. It is a rogue racketeering industry trafficking in children.

They steal people's real estate, freeze their bank accounts and then their children to market to homosexuals.

Most victims are destroyed permanently. But you didn't count on people like me who not only survived what you did to me, I am doing better financially and physically than most Californians. While your economy takes a dive, ours is blooming here in Canada. We have plenty of oil, clean water, clean air, more jobs than can be filled, better public transport, high wages.

It is absolutely true that you reap what you sow. When my son ages out of your system don't think for a minute that he will be grateful. And don't think for a minute that the criminals who did this to us will get away with this. I've got a special place in hell reserved for them.

Posted by: Diane Booth at August 26, 2008 02:05 PM

As an advocate for the mentally and phsyically disabled and for women and children as well as for universal health care and mental health parity, I find that even I cannot access the help I need as a person living with disabilites . I am among the relatively higher income people in the state (though certainly not rich) , but have lost the majority of my money due to illness and the cost of medical care. I have found that the Department of Rehab will not help me and is designed to fail. Having spent many years in Sacramento and Washington working on behalf of others, I know the policitians and heads of agencies personally and I still cannot get help. Medicare is a disaster. I ran a company before quiting to pass laws in 1996. As I have told everyone from Senator Feinstein to Senator Perata , both of whom I have worked with and respect enormously, if this can happen to me, imagine what can happen to the average person and family or people who are uneducated, who do not have a strong command of the English language , or who don't have the technology to access information. While I find Ms. Booth's letter to be homophobic, I have to agree that the foster care system is a scandal.

Posted by: Lori Holman at August 28, 2008 08:51 AM

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