Media Statement

California Hospitals Applaud Passage of State Budget
Agreement Strikes Balance of Budget Cuts, Revenue Increases

Sacramento (February 19, 2009) – California hospitals have long supported a balanced approach to resolving the state’s cyclic budget crises.Governor Schwarzenegger and the Legislature should be commended for their tireless work and leadership in striking a balance of budget cuts and revenue increases which led to today’s passage of a budget that closes the largest budget deficit in the history of California.

Closing a budget gap of the magnitude faced by the state has required all stakeholders to make sacrifices. The California Hospital Association (CHA) remains concerned about the impacts on patients that will result from $54 million being shifted away from county hospitals and hospitals operated by the University of California to help balance the budget. CHA expects that this budget cut affecting safety net hospitals will be reversed when adequate federal stimulus funds become available to the state.

The extraordinary efforts made by Governor Schwarzenegger and legislators over the last several weeks to resolve the state’s budget crisis have not been easy. The final agreement, however, puts the needs of all Californians first.