Special sessions ordered

Gov. Arnold Schwarzenegger on Tuesday officially called special sessions on health care and water storage but acknowledged that his long-desired changes on how California draws legislative districts are dead for this year.

The Republican governor and Democratic lawmakers remain at odds over how to pay for a health care solution for the 6.7 million uninsured Californians.

Schwarzenegger reiterated that he wants the Legislature to approve everything but the funding for a health care agreement and ask voters next year to approve various funding sources to pay for the plan. To be approved in the Legislature alone, most fees would require support from Republican legislators, who have opposed any such new charges on businesses, hospitals or doctors.

"I think that if you talk about the funding mechanism, (the ballot) is the only way, except unless someone comes up with some miracle answer," Schwarzenegger said. "But I mean so far the only way we can create the funding mechanism is by doing that part and taking it to the people."

The governor has promised to veto Assembly Bill 8 by Assembly Speaker Fabian Núñez, D-Los Angeles, which would pay for health coverage by requiring that employers spend 7.5 percent of payroll on care for their workers. But Núñez said he still believes an employer fee should be included in the legislative portion of the health care plan, not a ballot initiative.

He said that other funding sources, such as a hospital tax or sales tax, should be on the ballot, but not an employer fee. That way, he suggested, even if voters reject the initiative, California can still pay for improvements to its health care system.

Núñez and Senate President Pro Tem Don Perata said they intend to reach agreement by Sept. 27 to approve a new multibillion-dollar bond to pay for water storage and a solution to environmental problems in the Delta, such as a canal that Schwarzenegger has backed. That time frame would allow the bond to go on the Feb. 5 ballot.

Núñez said that lawmakers would ideally reach an agreement on health care within two weeks as well, but he held open the possibility that it could take longer. As for Schwarzenegger? He would only speculate that a deal could come in "weeks."

Núñez, who gaveled in the special sessions Tuesday night, plans to organize working groups of legislators to focus on water and health care. When agreements are reached, Núñez said he plans to call in policy committees and ultimately all of the Assembly.

Besides focusing lawmakers on specific issues, special sessions suspend some legislative rules and allow measures approved with a majority vote to take effect 90 days after the session closes.

About the writer:

• The Bee's Kevin Yamamura can be reached at (916) 326-5548 or kyamamura@sacbee.com.