by Brian Leubitz [courtesy of Calitics - Front Page]

[courtesy of California Progress Report]

• Senate Budget Committee Approves Major Provider Rate Cuts
• Cuts to doctors, hospitals, other providers, managed care plans to begin July 1
• Other cuts may need to be revisited for 2008-09

By Anthony Wright
Executive Director of Health Access California

The Senate Budget Committee on Wednesday evening passed a series of bills that would eliminate the $3 billion shortfall in this year’s budget and leave it with a cushion of $1 billion. Additionally, it shrinks the 2008-09 deficit from $11 billion to $7 billion.

Lawmakers and the governor are acting hastily on the budget this year because the state is expected to beginning running out of cash this spring and could begin defaulting on its loans and payments by the beginning of the fiscal year.