Gov. Brown Makes May Revision

Yesterday, Governor Jerry Brown released his 2011-2012 budget May Revision, thereby revising his January budget proposal and taking into account recent revenue dollars as well as cuts made by the legislature in March.  Although revenues are up by $3.5 billion in the budget year, California still has a structural deficit of approximately $9.6 billion.  The Governor’s May Revision proposes to address this gap in a number of ways, below are key highlights in Health and Human Services:

*  Tax extensions.  The proposal continues to advocate extending the current sales tax, vehicle license fee rates and dependent credit exemption level for five years (with voter ratification). 

*  Shift Healthy Families children to Medi-Cal.  The proposal would implement the Medicaid expansion for children to 133% of FPL required under federal health care reform early and take the additional step of transitioning all Healthy Families children to Medi-Cal, $31.2 million savings.

* Loss of Prop 10 savings.  The May Revise reflects a restoration of $1 billion to reflect legal challenges brought against the state’s use of Proposition 10 funding for the Medi-Cal program.

*  Eliminate 43 boards and commissions.  The May Revision would eliminate 43 boards and commissions, including the California Medical Assistance Commission (CMAC), the Managed Risk Medical Insurance Board (MRMIB, all the programs under MRMIB would transition to the Department of Health Care Services in the budget year) and the Commission on the Status of Women. $41.5 million General Fund savings.

*  Reduce state personnel.  The proposal reduces personnel by approximately 5,500 from 2010-11 to 2011-12.

If the Governor and Legislature are unable to come to an agreement on revenues, all departments and areas of government will be subjected to increased cuts. The legislature will begin subcommittee hearings on these and all other May Revision issues next week.  CFHC will continue to keep you updated on issues that affect the provision of safety net health care in California.