Governor Proposes $10.2 Billion in Mid-Year Cuts to Health and Other Programs
Stating that the anticipated recovery of the economy has not materialized as projected, Governor Davis released his proposal to further cut spending in a number of areas, including health and human services in the current fiscal year. The proposal, released December 6, includes substantial cuts to programs for low-income Californians. The proposal does not include revenue increases as called for by fellow Democrats.
Department of Health Services - Reductions include:
Rescission of 1931(b) Medi-Cal Eligibility Expansion ($12.4 million in 2002-03, $235.0 million in 2003-04, and $985.1 million after full implementation) – Beginning April 1, 2003, eligibility of Medi-Cal to families would be limited to those with incomes up to 61% of the Federal Poverty Level, compared to 100% previously. According to the California Budget Project, estimates suggest that almost 150,000 parents, mainly new applicants, would lose coverage by rescinding the eligibility expansion during a full fiscal year.
Medi-Cal Optional Benefits ($63.3 million in 2002-03) – Dental services, medical supplies, podiatry, acupuncture, chiropractic services, psychology, independent rehabilitation centers, and occupational therapy would be eliminated for adults, effective April 1, 2003. Elimination of the adult dental coverage will likely jeopardize the entire Medi-Cal dental provider infrastructure.
Reinstatement of Medi-Cal Quarterly Status Reports ($170.1 million in 2002-03) – Families receiving Medi-Cal would be required to submit quarterly eligibility status reports beginning April 1, 2003. Estimates from the Center on Budget and Policy Priorities find that 247,000 persons who qualify for Medi-Cal would unnecessarily lose health coverage during the year if quarterly reports were reinstated.
Medi-Cal Provider Rate Reductions ($90.4 million in 2002-03) – Medi-Cal provider rates, including rates for physicians, nursing homes and adult day health centers, would be reduced by 10% effective April 1, 2003. Advocates fear reductions will create further barriers to accessing providers.
Cancer Research ($6.3 million) – State funding to the Cancer Research program would be reduced by over one-half.
Prostate Cancer Treatment ($10 million) – Funding for prostate cancer treatment from the Tobacco Settlement Fund would be reduced by one-half.
Eliminate the Gynecologic Cancer Information Program ($150,000) – This program, which would develop and distribute health educations materials for gynecologic cancer, would be eliminated.
Outreach and Media Campaigns for Medi-Cal, Healthy Families ($1.9 million in 2002-03) – Outreach and media campaign activities to increase enrollment in Medi-Cal and Healthy Families, as well as application assistance training would be eliminated.
In addition, the following cuts have been proposed for other health and human service departments:
Department of Developmental Services - $143.7 million
Department of Social Services - $24.8 million
Department of Rehabilitation - $21.8 million
Department of Child Support Services - $9.7 million
Department of Mental Health - $4.8 million
Department of Aging - $2.5 million
Department of Alcohol and Drug Programs - $1.5 million
Department of Community Services and Development - $1.5 million
Health and Human Services Data Center - $0.47 million
Download the Governor’s Mid-Year Spending Reduction Proposals.
Additional analyses are available at the California Budge Project’s website.
For more information, contact the APIAHF Policy Division staff:
Gem Daus, Legislative and Government Affairs Coordinator, GDaus@apiahf.org
