Media Statement

California Hospitals Acknowledge Gravity of State’s Fiscal Crisis
Urge Passage of Props 1A-1F

California’s fiscal crisis affects every Californian. The May revision of Governor Arnold Schwarzenegger’s budget brings into sharp focus the gravity of the situation. The continuing meltdown in revenues, coupled with increasing demands on government for services and assistance, has created a dire set of circumstances today and a bleak outlook for the foreseeable future.

All of the cuts contained in the 2009-2010 May budget revision are distasteful. However, there are few options to addressing this vexing and profound problem.

As with other essential services, the proposed cuts in the Medi-Cal and Healthy Families programs will create pain for individuals and further add to the financial stress facing many California hospitals and other health care providers.

Continuing the status quo is untenable. If there ever was a case to be made for enactment of Propositions 1A-1F on May 19, this is it. The initiatives must pass in order to create short-term funding and stability in the state’s finances over the long term.

The California Hospital Association (CHA) applauds the Governor for his honesty and courage in presenting the facts to the public. By spreading the pain, the Governor has attempted to create shared responsibility across all segments of state government and society. While arguments could be made against many of the specific budget reductions, the magnitude of California’s budget deficit demands bold and drastic actions.