Perata, Núñez, split on health care plan

Assembly Speaker Fabian Núñez says he and Senate President Pro Tem Don Perata are "joined at the hip" in their zeal to bring universal health care to the 6.7 million Californians without coverage.

But these days, the Legislature's two most powerful members and fellow Democrats seem to be moving in opposite directions.

While Núñez has done most of the negotiating with Republican Gov. Arnold Schwarzenegger, aides to the speaker and governor say Perata – who disagrees with the plan's funding – may determine whether a health care bill clears the Legislature by year's end.

Núñez and Perata have disagreed on substantive issues before.

The speaker bristled earlier this year, for instance, when a Senate committee approved legislation supported by Perata to combine term limits and redistricting changes into a single ballot measure.

After the speaker's aides called the proposal unconstitutional, the Democratic leaders agreed to put only the term limits measure on the Feb. 5 ballot.

Núñez wants to move the health legislation – Assembly Bill 1x – beginning today, when he has scheduled a vote in the Assembly on the bill he has negotiated with the governor.

In the three months since Schwarzenegger called a special session on health care, the speaker has scheduled other votes only to cancel them because there was no deal.

Even if the bill finally clears the Assembly, Perata has not agreed to put it to a vote of his members. Earlier this month, he told Democratic senators at a retreat they would not be returning to Sacramento before the new year.

And last week, the senator said he wanted to wait to see the fallout from California's $14 billion deficit – and what cuts the governor proposes next month.

"It's a very difficult conundrum for a member (of the Legislature) to have to explain that we're going to have to cut some jobs and (program) eligibility, but we'll have a real good deal in a couple of years," Perata said after a meeting in the governor's office.

Any health care plan would not provide coverage until 2010, while the across-the-board budget cuts the governor is seeking could be implemented next year.

Schwarzenegger maintains the proposed health care plan, which would require contributions from employers, workers, hospitals and other sources, would not need more state spending and would prevent some budget cuts.

California already faces the possibility it may have to drop children from the state's Healthy Families program because of insufficient federal funding.

Núñez left last week's meeting with the governor a half hour after Perata and with more optimism. He told reporters "we don't have a final deal, (but) the framework for a deal is certainly there."

"If you asked me right now what are the outstanding issues, I wouldn't be able to answer that question," the speaker said. "I think we're that close."

Close – a description Núñez and Schwarzenegger have used repeatedly for weeks to characterize the negotiations – depends on who's measuring.

Núñez and Perata have yet to agree on a critical funding source for the proposed $14 billion health care expansion.

The speaker has persuaded Schwarzenegger to scrap his plan to lease the state lottery to help pay for the plan and instead agreed to hike the state's 87-cent tax on a pack of cigarettes.

Núñez's aides say he wants a $2-a-pack increase, but the governor prefers a $1.50 hike.

Perata, meanwhile, believes any "tobacco tax is flawed" because the industry will spend "a huge amount of money" to defeat the proposal at the ballot box next November.

A $2.60-a-pack increase, sponsored by California's hospital industry and health care advocates, was opposed by Schwarzenegger and rejected by voters last year.

Núñez maintains the Legislature must produce a bill that Schwarzenegger signs by Friday to allow time to collect signatures to place the financing proposals on the November 2008 ballot.

Perata wonders: What's the rush?

"The Indian tribes qualified a constitutional amendment in 21 days, the track and card clubs qualified a referendum in less than 30 days," Perata said. "So it's possible to get something on the ballot before November without doing it this week."

Núñez said there's still a chance that Perata will agree to hold a vote on health care this week.

"In the last week, or week and half or so, Senator Perata has been less engaged that I have in these negotiations," the speaker said before Thursday's meeting. "He's been brought up to speed in the last two, three days, and I think the Senate has re-engaged in these conversations."

On Friday, Schwarzenegger played down Perata's reluctance to take up the bill this week.

"He's a big believer in making sure that everyone has insurance, and he just wants to now iron out some of the last-minute details," the governor said during an appearance in Southern California to promote his plan.

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• Call Aurelio Rojas, Bee Capitol Bureau, (916) 326-5545.