Lawmakers and the Gov. of Ca are poking thier chests out at one another. Meanwhile, the Ca medical community is going bankrupt.
In California there is a state budget stalemate underway. Lawmakers from both sides of party lines are dealing with an estimated $15.2 billion deficit. The disagreement about what to do about the state budget and how to solve the deficit caused Gov. Arnold Schwarzenegger to issue a fund-freezing executive order back in July. This means Medi- Cal payments to about 4,700 disabled service providers, community clinics, nursing homes, senior day programs, hospitals and other organizations have not been made since July 31, 2008. To solve the state budget problem Democratic leaders favor temporary tax increases to avoid service cuts. Republican leaders oppose tax increases. Instead they propose belt-tightening and borrowing 2 billion against future state lottery sales. Both parties and the governor refuse to budge. Budget delays have become an annual ritual in California. In the last 30 years, lawmakers have only had their budget in on time a dozen times. This is the longest stalemate in Ca history, though. On Sept 1, 2008 Ca was 63 days into the current fiscal year without a budget.
California will supposedly repay the 3 billion dollars in overdue Medi-Cal money to the providers once a budget is signed, but that does not help providers in the meantime. It will not stop supply providers from cutting credit off, patients from doing without, and businesses from going bankrupt. By failing to pass a budget, they are also affixing yet more debt into their budget. Most proposed tax increases or program cuts can not be retroactive. Therefore, they could be adding up to another billion dollars to their deficit.
Some larger providers argue that they would rather wait for an acceptable budget, rather than rushing into an inadequate budget that would eliminate adult dental services, optometry, podiatry and psychology, and cut Medi-Cal rates by 10%. Organizations like Planed Parenthood agree. However, these organizations are getting loans through the California Primary Care Association. Small providers and mom and pop facilities have not been able to get these loans and since the mortgage crisis hit, it has become nearly impossible to get a business loan.
Lupe Henry, co owner of 12 homes for disabled children, told the Contra Costa Times “"It's not like we can cut corners. I can't tell my staff to come back in two weeks or reduce the amount of food we buy.” She is right. Over 50 caregivers at Sunnyside Convalescent Home, in Fresno Ca., are planning to go on strike starting Sept. 15. The workers say it has been a month since they got paid. The owner says the budget stalemate is the reason he is unable to pay the workers. The owner also says he has used his entire personal savings and even put his house up for loans. Casa Healthcare, which provides care for disabled children, has also suspended pay checks due to lack of funds. These are just a few of the medical facilities that are in dire times. I fear soon we will see this in unimaginable multitudes if something is not done. Furthermore, services that provide these small medical businesses with supplies are not going to go on credit and minimum wage employees can not afford to live on credit. I wonder what the Ca. legislators think will happen to these disabled children when they are not getting diapers, medicine, attendance, or even food? What will happen to all the medical field workers that will soon be forced into unemployment?
The medical community is not the only ones that will suffer from the complete ineptness of the Ca legislature. Cal Grants, Community colleges,Transportation, and K -12 special education programs will also not have money for their programs. That will be 12 billion dollars that will not be available for the above.
Gov. Arnold Schwarzenegger told the media that he would wait until winter to sign spending bills into law, if necessary, to get what he considers a decent budget. At the beginning of September, a Republican proposal to release emergency funds to service providers was rejected by Gov. Arnold Schwarzenegger. He cited it as fiscally irresponsible and said it would precipitate a cash crisis, emptying state coffers of billions of dollars at a time when reserves are low and the usual bridge loans can't be accessed because there is no spending plan. I say…. the human suffrage is too high a price to pay, while the politicians in California play a shell shuffle game with funding and budgets.
