Governor Davis's 2003-2004 Budget – Hearings Continue
As reported in February, the Governor released his 2003-2004 Budget on January 10, 2003. Based on an estimated $34.6 billion budget gap, the Governor has proposed reducing all State agencies' funding, except for Corrections, including a reduction of $6.5 billion for the Department of Health and Human Services (DHHS). Much of DHHS's reduction would be achieved by a shift of $8.273 billion in costs and program responsibilities from the State to the counties. This "realignment" of mental health, health and social services programs to the counties would be paid with $8.334 billion in new revenues, i.e., a 1 cent sales tax increase, reinstatement of the 10 and 11 percent personal income tax brackets, and a $1.10 per pack tax increase on cigarettes. On top of this realignment of the program responsibilities and the program costs to the counties, the Governor proposed broad eligibility and services cutbacks in Medi-Cal.
The Assembly Budget Subcommittee #1 on Health and Human Services, chaired by Judy Chu (D - Monterey Park), and the Senate Budget Subcommittee #3 on Health, Human Services, Labor and Veteran Affairs, chaired by Wesley Chesbro (D - Arcata), have been taking testimony on the Governor's Budget, including opposition to the realignment and the cutbacks voiced by numerous advocates representing a broad range of constituents and providers. On March 24, 2003, the Senate Budget Subcommittee voted to reverse the realignment proposal, thereby blocking the shift of 15% of the funding for Medi-Cal to the counties and the shift of long-term care costs. However, the Subcommittee did note that "overall restructuring/realignment discussions" were just beginning.
The Senate Budget Subcommittee also took testimony on the proposed
Medi-Cal cutbacks to eligibility, retention, benefits and provider
rates. While no action was taken, Senator Chesbro did express
his "serious concerns" with the cuts. The Subcommittee's
analysis can be viewed at http://www.senate.ca.gov.
For more information, contact the APIAHF Policy Division staff:
Gem Daus, Legislative and Government Affairs Coordinator, GDaus@apiahf.org
