California Legislative Analyst Releases Alternative State Spending Plan

February 23, 2008 – 5:58 pm | posted in Public Health

The California Legislative Analyst on Wednesday projected that the state’s expected budget deficit has increased from $14.5 billion to $16 billion and released an alternative spending plan for lawmakers to consider, the Los Angeles Times reports. Legislative Analyst Elizabeth Hill said Gov. Arnold Schwarzenegger’s (R) plan for a 10% across-the-board reduction in spending for state agencies is shortsighted and urged legislators to reject it. Hill said that a 10% cut in Medi-Cal physician payment rates would exacerbate the current physician shortage and force beneficiaries to seek care in emergency departments, which would increase state costs elsewhere (Halper, Los Angeles Times, 2/21).

Schwarzenegger on Saturday signed legislation intended to save the state more than $500 million in Medi-Cal by reducing payments to health care providers. The lower reimbursement rates are scheduled to take effect July 1 (Kaiser Daily Health Policy Report, 2/20).

Hill’s competing budget proposal was the first time the state analyst released a plan before lawmakers began to debate the budget. She said the plan was needed because Schwarzenegger failed to prioritize funding for public safety, health and welfare, and other core responsibilities of government (Davis, AP/San Diego Union-Tribune, 2/20).

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