Senate Leader Perata Does Not Support California Health Care Reform Bill

[courtesy of California Progress Report]

Text of Letter Sent to Governor Schwarzenegger and Speaker Nunez

Senate President pro Tem Don Perata (D-Oakland) sent to following letter to the Governor and Assembly Speaker today.

January 28, 2008

Hon. Arnold Schwarzenegger
Governor
State of California
State Capitol, First Floor
Sacramento, CA 95814

The Hon. Fabian Nunez
Speaker of the Assembly
State Capitol, Room 219
Sacramento, CA 95814

Dear Governor and Assembly Speaker:

Since November 2006, we have worked together to improve our broken health care system. I introduced SB 48 in December 2006, later yielding to the Speaker’s bill in recognition of our mutual commitment to “get something done.” A lot of progress ensued. Many interests became engaged. Regrettably, however, I cannot support ABX1-1 or its companion initiative.

This bill – which is before the Senate, and the initiative, which is not – would create the third-largest program in state government, surpassed only by K-12 education and Medi-Cal. Under any circumstances, but especially in light of the state’s $14.5 billion budget shortfall, we have the fiduciary responsibility to approve a health care coverage plan that is both self financing and fiscally sound and a moral responsibility to protect from harm those who already have health care coverage.

That’s why I asked the Legislative Analyst’s Office for its independent analysis. Its report, released last Tuesday, has identified significant General Fund risks. The Health Care Reform (HCR) plan proposed would grow faster than the revenues chosen to pay for it. If the underlying assumptions are wrong, even by small margins, the potential shortfall could devastate a state budget already teetering on insolvency.

Many other fundamental fiscal concerns were highlighted during the Senate Health Committee’s in-depth hearing on the proposal. Specifically: