There is still no resolution to the ongoing battle in Sacramento over the state budget.  Governor Schwarzenegger called a special session of the legislature last November to try to force action on a series of cuts and tax increases. However, the only proposal to advance was one passed by the Democratic majority that the Governor vetoed yesterday, stating it did not contain enough cuts.

On New Year's Eve, the Governor released his 2009-2010 budget. It is mostly a reiteration of the same revenue increases and cuts to Medi-Cal and other vital programs, but with some new provisions, such as delaying payments to Medi-Cal providers and eliminating the First 5 California Commission. He continues to call for sales and alcohol tax increases, as well as an increase of the oil severance tax, but he also now proposes a reduction in the dependent exemption tax credit. With the veto of the Democratic plan, all these cuts are back on the table.

The painful cuts include:  

• Eliminating services in Medi-Cal, including adult dental and psychological care;
• Cutting eligibility for parents on Medi-Cal from 100% of poverty to 72%;
• Eliminating full scope Medi-Cal for lawfully present immigrants;
• Shifting funds away from public hospitals; 
• Eliminating the cost-of-living increase to counties for Medi-Cal administration; 
• Delaying paying Medi-Cal providers by a month; 
  
• Eliminating the Cash Assistance Program for Immigrants (CAPI);
• Eliminating the California Food Assistance Program (CFAP);
• Eliminating the First 5 California Commission; and
• Cutting CalWORKS and SSI/SSP.

You can get more information by viewing the Governor's budget proposal, and an analysis by the California Budget Project.

Call the Governor and legislative leaders. Tell them cuts to Medi-Cal and programs for low-income residents will hurt those most in need in these troubled times. Urge them to support progressive revenue increases as the only fair, long-term solution!  

Call:
Assembly Speaker Karen Bass: (916) 319-2047

Senate President pro Tempore Darrell Steinberg: (916) 651-4006

Governor Schwarzenegger: (916) 445-2841

Call your own legislator by going here.

Let us know how the call goes by emailing Marty Martinez at mmartinez@cpehn.org.