California Senate Hearing Considers $1.6 Billion in Proposed Health Budget Cuts

[courtesy of California Progress Report]

Would leave many Californians without access to eyeglasses, hearing aids, teeth cleaning or incontinence creams and ointments

By Hanh Kim Quach
Health Care Policy Coordinator
Health Access California

The Senate Budget Committee met Monday to comb through $1.6 billion in proposed health budget cuts, which would force the state’s poorest residents to overcome bureaucratic burdens to keep their coverage, and leave many residents without access to eyeglasses, hearing aids, teeth cleaning or incontinence creams and ointments. And that's not including the biggest cuts aimed at the health providers on which all Californians rely.

Some cuts, Chairwoman Denise Ducheny classified as “knee-jerk” policies, and lamented that “some of these savings are so small, we’re spending more time talking about them than what they’re worth,’’ specifically in that instance referring to the $251,000 to be saved (out of a $141 billion budget) by eliminating adult psychology services.

CALIFORNIA’S BUDGET BLUES

Lawmakers need to make big decisions about these and other programs by March in order to avoid a statewide financial catastrophe, such as defaulting on loans, on July 1. The state is short about $14.5 billion.

California’s perennial budget problem is particularly acute this year because the state has papered over its budget deficits for most of the past decade – borrowing internally from funds it shouldn’t have, deferring payments – several times – that were later ruled illegal, selling bonds to pay off its debt, and reversing the Vehicle License Fee. The latter two make up $9 billion of the $14.5 billion deficit.

Gov. Arnold Schwarzenegger proposed a budget that cuts spending by 10% across the board. See Health Access’ Fact Sheet on the proposed budget cuts at our website, or view the Senate Budget Committee’s analysis of budget impact.

Medi-Cal, whose recipients earn less than approximately $17,600 annually for a family of three, would weather the bulk of health reductions -- $1.1 billion -- for the current and 2008-09 fiscal year. The biggest ticket cuts in health services are: