California Insider

Legislative Democrats say they learned a lesson from the fiscal disaster that cost Gray Davis his job. But their proposal to expand health insurance for children is very similar to the way Davis expanded eligibility for Medi-Cal earlier in this decade. It starts small, then grows quickly in future years. By 2008, the latest proposal is expected to cost the state at least $300 million. It's kind of like a homeowner who can barely pay his bills taking on an adjustable rate mortgage that is likely to grow more expensive as interest rates rise. Schwarzenegger's alternative is to try to enroll every child who is eligible now for the program, then talk about expanding eligibility later, if the state has the money to pay for it.