The governor’s office just released a set of statements about “how fixing California's broken health care system is key to keeping California's economy strong and to solving California's chronic budget problems.”
With news out that the Schwarzenegger administration is ordering departments to prep for cutting 10 percent of their budget, some folks are questioning if now is the time for a health care overhaul.
"Inevitably, as a policy solution, these things meet up," Fred Silva, an adviser to the nonpartisan fiscal policy group California Forward, and a former state Senate legislative budget director, told The Bee’s Aurelio Rojas in a story this morning.
Schwarzenegger strongly disagreed.
"We cannot fix the budget without fixing health care. Of course, we need structural reform of our state budget. And I am not suggesting that if we fix health care our budget problems disappear. But we also don't need to get bogged down every year in a debate about cutting poor kids and their families from state health programs," Schwarzenegger said in the released statement.
The administration notes that of the $14 billion in funding, most wouldn't be coming from the General Fund.
That said, it wouldn't be going to the General Fund either.
The administration also touts potential federal matching funds, to the tune of $4 billion.
"This money currently sits on the table in Washington, D.C. unused. My plan generates enough new revenue for health care that the federal government has already promised us the money," Schwarzenegger said.
The Democratic leadership and Schwarzenegger continue to negotiate. On Thursday, Assembly Speaker Fabian Núñez and Senate President Pro Tem Don Perata issued a joint statement saying they were "pleased that the governor is engaging and moving in the right direction. It is time to settle our remaining differences and get the job done.”
The Democratic plan is tentatively set for a Assembly Health Committee hearing next Wednesday.
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