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$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.)

Healthy Families

  • 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.

Food/Hunger Programs 

  • 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.


SF Gray Panthers,  1182 Market St,  Room 203,  San Francisco CA 94102
Phone: 415-552-8800, fax: 415-552-8801
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Location: Market Street, at Hyde and 8th Streets,
One door downtown from Orpheum Theater box office. Map
Surface transit: MUNI 5, 6, 7, 9, and 21 buses, and F streetcar
Underground transit: Civic Center Station for BART and MUNI Metro lines J, K, L, M, and N
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