Legislative Democrats and Gov. Arnold Schwarzenegger are eager to declare victory should they reach agreement on a health care plan to cover 6.7 million uninsured Californians, but Assembly Republican Leader Mike Villines warned Tuesday that any celebration would be premature.
That's because he believes a June 2008 ballot referendum looms as a serious threat to overturn whatever deal they reach this fall.
Villines, R-Clovis, said that a Democrat-backed health care compromise could galvanize business groups and other opponents who would pay to put a referendum on the June ballot to reverse whatever legislation Schwarzenegger signs. Opponents of the current proposal include tobacco companies and business groups, both of which have financially opposed health care ballot measures in the past.
Last year, the tobacco industry spent $65 million to kill an initiative that would have raised the cigarette tax to $2.60 per pack to fund health causes.
The governor and Democrats hope to move a proposal through the Legislature with support from majority Democrats, but that strategy means that they cannot include funding for the plan, which would require additional support from Republicans. To pay for the $14 billion proposal, Schwarzenegger and lawmakers would ask voters to pass a ballot initiative in Nov. 2008.
Villines said he opposes the health care plan under negotiation because he believes it is too expensive and that its funding sources will fall short of paying for the entire proposal. He also said the burden will then fall on employers, and he fears the plan does nothing to prevent medical costs from spiraling out of control.
"I think you'll see a lot of people come into play on this and say this isn't the way to go," Villines said.
Deborah Gonzalez, chief consultant to the GOP caucus Villines heads, said tobacco companies, pharmaceutical firms and other businesses were potential backers of a referendum.
John Kabateck, NFIB/California executive director, said he was not aware of a specific referendum plan in play, but noted that all options remain open. He said his group, which represents small businesses, is concerned about any proposal that mandates employer health contributions.
California Chamber of Commerce President Allan Zaremberg believes it is "premature" to discuss a response to the health care proposal without knowing the details of what will be in the final plan, said Denise Davis, a Chamber spokeswoman.
Schwarzenegger spokesman Aaron McLear said, "It's hard to respond to a concept when we're not aware of any group who has said it would do this. But that said, health care reform will help businesses in California."
Steven Maviglio, spokesman for Assembly Speaker Fabian Núñez, had a different take.
"We'll take a 'white hats' versus 'black hats' fight with Mr. Villines and his big tobacco allies any day of the week," Maviglio said.
This post has been updated to reflect that Gonzalez, not Villines, said tobacco companies, pharmaceutical firms and other businesses were potential backers of a referendum.
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