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Editorial: Your turn, Governor
Moves by Núñez, Perata open the door
Published 12:00 am PST Wednesday, November 7, 2007
Story appeared in EDITORIALS section, Page B6
With Gov. Arnold Schwarzenegger focused on the southland wildfires and Assembly Speaker Fabian Núñez trying to smother some blazes of his own, neither leader has found much time recently to negotiate a final deal on health care reform.
Now the moment appears at hand. On Tuesday, Núñez and Senate leader Don Perata offered up a new proposal that brings them much closer to the framework that Schwarzenegger has proposed all year.
If these three leaders can avoid further distractions – whether it be natural disasters or ones of their own making – they could soon come to terms on a historic pact that could expand health coverage to the 6.7 million Californians who are now uninsured.
To his credit, Núñez has backed off his insistence that employers pay at least 7.5 percent of payroll for health care or pay that amount into a state fund. His new proposal calls for a "sliding scale" 6.5 percent payroll tax. Employers with payrolls up to $100,000 yearly would pay 2 percent; those with payrolls up to $250,000 would pay 4 percent.
Núñez has also moved closer to the governor on a key point – whether all Californians should be required to carry health insurance. To address concerns about affordability, his plan includes tax credits and safeguards to ease any burden on middle-income earners.
Lastly, Núñez and Perata have come up with a more viable way to finish financing this $14 billion program. Instead of leasing the lottery, they propose a hike in the tobacco tax that would raise $1.8 billion yearly. Although these revenues will likely drop over time as people quit smoking – a worthy outcome on its own – Núñez expects revenues from hospital fees to rise over time, making up for possible shortfalls.
Schwarzenegger will now want to drill down on the details, but he should feel encouraged the Democrats have come forward with a good-faith counterproposal.
Now it's in the governor's lap.
Governor?
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