California Gov. Arnold Schwarzenegger has proposed cuts to health programs and warned more would come if the federal government does not increase program reimbursements.
Schwarzenegger plan holds cuts for healthcare
At the start of his final year in office, Schwarzenegger declared a fiscal emergency amid a $19.9 billion deficit and called the state Legislature into a special session to fix a “broken budget and tax system that are the root of this evil.”
His $82.9 billion spending plan for fiscal 2010–11 includes $750 million in cuts to Medi-Cal, the state’s Medicaid program. Prison medical care would be cut by $811 million under his plan.
Schwarzenegger will seek to raise California’s Medicaid match to the national average of 57% from 50%, netting the state an additional $1.8 billion, he said. Further state cuts will be triggered if a total of $6.9 billion in federal funds for various programs cannot be obtained, including eliminating the state’s children health insurance program.
“Right now the federal government is forcing us to spend money we don’t have,” he said at a news conference in Sacramento. “We’re going to fly to Washington, and we’re going to get that money.”
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