$14 billion shortfall projected by July, 2009, $3 billion from this year, $11 billion from 08-09.
* Schwarzenegger plan: balance thru cuts.
* Nunez plan: balance thru ½ cuts, ½ revenue increase.
* Republican Governor Pete Wilson in 1991-92 budget crisis: 1/3 cuts, 2/3 revenue increase.
- Approximately $5 billion in Prop 98 funds to be deferred (Calif. Is 46th in US in per/pupil funding.)
- $1 billion cuts to Medi-Cal alone, half from cuts to provider payments
- 10% cut in Medi-Cal payments to doctors, hospitals, clinics, and HMOs.
(California payments to doctors, hospitals, and clinics are already among lowest in US. Six million Californians are on Medi-Cal, about 1/6th of State. California has 46 primary care providers who accept Medi-Cal per 100,000 patients – compared to 60 to 80 per 100,000 nationally.) (more)
- Require re-registration for Medi-Cal every three months for both kids, adults. (This is being done to knock 100,000 adults and kids off Medi-Cal.)
- Cuts in “optional” Medi-Cal benefits (adult dental, optometry, audiology, podiatry, psychology, speech therapy, and acupuncture, all with high impact for seniors and people with disabilities.)
- Medicare/Medi-Cal recipients will lose help in paying Medicare Part B premium payments.
- Cut in payments to Counties to administer Medi-Cal and determine eligibility, or sign up new recipients.
- Cuts to long-term-care facilities
- Cuts to private hospitals to offset uncompensated care costs
- IHSS: A 20% cut in hours per month for non medical service (meal prep, laundry, bathing)
and cuts to county programs administering IHSS programs. (more)
- Suspension of state’s COLA for SSI/SSIP until 2010 (Affecting 1.3 million seniors/disabled.) (more)
- Cuts to Department of Aging Nutrition Program (Provides home-delivered meals.)
- Families 150-200 pct of Poverty Level will have a premium increase from $9 to $16 per month.
- Families 200-250 pct of Poverty Level will have a premium increase from $15 to $19 per month.
- Co-Payments for medical visits for illness or injury treatment will increase from $5/visit to $7.50/visit.
Cal/WORKS (old AFDC/welfare)
- 75,000 families will loose all assistance
- Elimination of cash assistance for kids of parents who are reaching the 5 yr. limit.
- Elimination of cash assistance for kids of parents not eligible for Cal/WORKS:
(Citizen kids of undocumented parents, drug felonies, parents not meeting work quotas)
- State Welfare funding flat since 1997, and $12 billion has been diverted to other uses.
- Cut state reimbursement to school districts for free/reduced meals.
- Cut County Funds to administer Food Stamp programs
- 10 % cut for Calif. Food Assistance Program (food stamps for undocumented immigrants)
- 2.9 million adults in California were “food-insecure”.
Half of food assistance recipients are families with kids.
In 2003, food assistance programs covered ½ million in California.
Source: California Budget Project, "Legislature Passes Mid-Year Cuts," Feb. 15, 2008 (pdf)
Read California Budget Project's "Two Steps Back," on why California should not use cuts as the way to solve its budget problem.
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