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The California Budget

California Adolescent Health Collaborative Near Los Angeles Hotels

The California Adolescent Health Collaborative (CAHC) is a statewide network of health professionals and organizations that work together to improve the health and well-being of California’s adolescents. The CAHC is headquartered in Sacramento, but has a regional office in Los Angeles that covers the southern half of the state. The Los Angeles office offers a variety of resources and services to its members, including training and technical assistance, information and referral, and advocacy. The CAHC also maintains a website with up-to-date information on adolescent health issues in California.

The Governor's proposed budget functions as a prospective policy statement and as a detailed spending plan for all the functions of the state. The proposed budget is put together each year and must be presented to the Legislature on or before January 10th. Once introduced, the Governor's proposed budget is translated into a budget bill for legislative consideration in both the Senate and Assembly.

The Legislature, in considering the Governor's budget proposal, may increase, reduce, add, or eliminate any item in the budget. Once the two houses have reconciled their actions on the budget and passed a final version back to the Governor, which requires a 2/3 vote, he can veto the entire budget, or reduce or eliminate any item in the budget. The Governor may also amend his own request during the process, for instance if the amount of money available after taxes are received in April turns out to be different from his initial forecast, but only if approved by the legislative Budget Committees. This new budget proposal is generally referred to as the May Revise.

This year, when Governor Davis released his first budget proposal in January with cuts to several important health programs that served youth, many health advocates decided to focus their efforts on saving CHDP, an important health screening program. In May, Davis released a revised budget that preserved CHDP but included deep cuts to a wide range of programs and services that affect youth and their families due to a $23.6 billion budget shortfall, $11.1 billion greater than had been estimated in January. About one third of the shortfall is addressed through program cuts ($7.6 billion), while the remainder of the gap is made up primarily by loans and various accounting shifts. Some of these proposed cuts that affect adolescent health include:

Reinstating quarterly status reports to verify continued eligibility for Medi-Cal ($310.8 million in savings) - This requirement serves as a deterrent for many eligible families to continue their health coverage. Almost 250,000 Californians will lose coverage.

Rescinding the expansion of the 1931(b) Medi-Cal program ($184.2 million in savings) - This program offered coverage to two-parent working families with incomes up to 100 percent of the federal poverty level. Almost 150,000 Californians will lose coverage.

Deferring Express Lane implementation until July 2005 ($51.6 million in savings) - This would have increased enrollment of eligible children in Medi-Cal and Healthy Families by automatically enrolling children through the school lunch and Food Stamp programs.

Reducing Medi-Cal provider rates ($94 million in savings).

Eliminating the Medi-Cal/Healthy Families community and school-based outreach grants - The application assistance fee and toll-free information help line will continue.

Reducing funding to "Disproportionate Share" hospitals - These hospitals form the backbone of California's safety net system for the uninsured. The Governor proposes to increase the fees that hospitals pay to the state for administering the federal program by $86 million total.

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