The Dirty Details on the California Budget: Health Cuts Would Impact Millions

[courtesy of California Progress Report]

• Governor revisits health budget cuts previously rejected as too severe
• Cuts include major provider rate cuts; benefit cuts, including dental
• Health reform proceeds, offers argument against cuts, for revenues

By Anthony Wright
Executive Director of Health Access California

Gov. Arnold Schwarzenegger returned to his pre-post-partisan days Thursday, unveiling an austere 2008-09 budget that attempts to address a $14.5 billion deficit, and calling a fiscal emergency.

THE BUDGET IN BROAD STROKES

Next year’s $141 billion budget would close parks, cut education funding, and cancel advance payments of budget borrowing from previous years. The budget reduces most state departments and programs by 10 percent, across-the-board.

“Now, some might say that it sounds easy to just cut across the board by 10%, but let me tell you… I can see every single person hurt by those cuts, and I understand how difficult they will be for many, many people,’’ Schwarzenegger said.

Nevertheless, Schwarzenegger revisited familiar fiscal territory, proposing cuts that both he and former Gov. Gray Davis had proposed, but were rejected by lawmakers as too extreme. In addition, Schwarzenegger re-proposed a so-called budget "reform," which had twice failed in previous years: automatic, across-the-board cuts to programs when spending grows ahead of revenues.

Democratic legislative leaders immediately disavowed the budget. “The budget proposed today is what a cuts-only budget looks like and the proponents of a cuts-only approach need to own it,” Speaker Núñez said. “This budget isn’t going for an up or down vote today. Clearly if passed as written, it would cause a lot of permanent harm.”

THE MOST PROMINENT HEALTH CUTS