Healthy Families Funding Partially Restored

The state legislature has voted to restore funding for the Healthy Families program by passing Assembly Bill (AB) 1422.

This follows a previous state senate vote about two weeks ago.

If Arnold Schwarzenegger signs AB 1422, it would reverse some of the spending cuts that were imposed on the program earlier this summer.

Healthy Families provides medical insurance to low-income children.

The basis for restoration of funding for Healthy Families are new taxes on Medi-Cal participants.

AB 1422 levies a two-year tax (2.35%) on health plans that administer Medi-Cal benefits.

This means that private health insurers will receive higher Medi-Cal reimbursement rates from the state.

The measure also raises premiums and co-payments on Medi-Cal patients.

Specifically, certain families on Medi-Cal would face higher premiums of $4 to $7 per child.

Those earning less than 150% of the federal poverty rate would be exempt from the higher premiums.

Almost 100,000 children were put on a waiting list after the state froze enrollment in Healthy Familie this past July. 

New Budget Deal Bad for Schools, Working Families, Local Governments

Schwarzenegger all smiles with State Senate President Pro Tem Steinberg (D-Sacramento) & State Assembly Speaker Bass (D-Los Angeles)California's legislative leaders have reached a tentative agreement with Governor Arnold Schwarzenegger on a budget deal to close the state's $26 billion budget deficit with massive cuts to schools and social programs, while refusing to raise taxes on oil companies.

The so-called "Big 5"—Democratic and Republican leaders in the Assembly and Senate plus the governor—agreed to nearly $16 billion in devastasting cuts to schools, California's welfare to work program, community colleges and universities as well as public health and the state's In Home Supportive Services (IHSS) program.

Additionally, the state will take several billion dollars of property tax revenue from cash-strapped cities and counties, which will most certainly mean more devastating cuts by local governments.

Massive cutbacks in safety net, income assistance, and public health programs only deepen the economic hardship faced by California's low- and moderate income working families. Many families will no longer be eligible for some essential programs such as Healthy Families, California's health insurance program for children in working families.

State workers face more cuts to their paychecks as the Big 5 agreed to three unpaid days per month. Curiously, istead of taxing oil companies, legislative leaders overturned a 40-year ban to allow more drilling off Santa Barbara's coast.

The California legislature could vote to approve the budget deal as early as Thursday this week. California law requires a two-thirds vote in both houses to approve the budget plan.

This means that there is still time to oppose this plan, as Bass and Steinberg have yet to secure enough votes in both houses of the legislature to adopt the deal.

For more information or to contact your state legislator, call us at 1-866-336-9333.

Update on Wednesday, July 22, 2009 at 4:37PM by Admin

The Los Angeles Times has provided a good summary of the latest budget proposal. Click here and here and here to read. 

Meanwhile, those who prefer to listen to their news can hear very good and informed discussions about the seminal details of the current budget plan by clicking here and here.

State Budget Update: A Fair & Balanced Approach?

The state legislature's budget conference committee recently unveiled its plan to close California's $24 billion budget deficit, but Arnold Schwarzenegger has already threatened to veto this plan, because it includes $2 billion worth of taxes on oil companies and tobacco companies.

Although conference committee members have attempted to moderate many of the draconian cuts proposed by Arnold Schwarzenegger in May, which included the complete elimination of Healthy Families, CalWORKs, Cal Grants and In-Home Supportive Services (IHSS), the conference committee's budget proposal still relies heavily on spending cuts to balance the budget.

Specifically, the budget conference committee is proposing:

• $11 billion worth of cuts to education, health, social, and other programs
• $10 billion worth of accounting maneuvers
• $2 billion worth of revenue solutions consisting of an oil severance tax and a tax on cigarettes.

While Child Care Providers United (CCPUnited) of California applauds the budget committee's decision to reject many of Schwarzenegger's most damaging proposals, CCPUnited feels that the committee must be more courageous in its pursuit of a fair and balanced approach.

We understand that the two-thirds budget rule makes it nigh impossible for Democrats to pass a budget containing any tax increases without Republican votes. However, $2 billion worth of revenue solutions in comparison to $11 billion worth of cuts can hardly be called balanced.

That is why we must continue to press the legislature and the governor by taking the following actions:

Click to read more ...