CHA News Article

Senate Budget Committee Approves Hospital Cuts

The state Senate Budget Committee yesterday approved $325 million in funding cuts to hospitals as proposed in the May revision to the fiscal year 2012-13 state budget. The Assembly Budget Committee is expected to take the same action. The Senate Budget Committee also approved the Administration’s proposal to score savings from the Coordinated Care Initiative, which would expand enrollment of seniors and persons with disabilities who are dual eligibles (Medicare and Medi-Cal) into managed care in up to eight counties in 2013 and statewide by 2015.

Trailer bill language to implement this provision and provide the savings details is not yet available. According to the Governor, the current state budget plan is not yet balanced, specifically because his proposed cuts to Cal-Works were rejected by the Senate and Assembly budget committees. Democratic leaders and the Governor continue to meet in an effort to reach consensus before floor votes take place this Friday, which is the constitutional deadline for the Legislature to send a budget to the Governor.