Posted on 06/14/2006 8:27:53 PM PDT by NormsRevenge
After early hopes that California might have its first on-time budget in 20 years, lawmakers Wednesday failed to bridge differences over funding health care for the children of illegal immigrants and settle on a plan to pay down state debt.
Lawmakers from both parties said they plan to continue negotiating Thursday - the constitutional deadline to pass the budget - but no vote on the proposed $131 billion spending plan is scheduled.
Assembly Speaker Fabian Nunez, D-Los Angeles, criticized Republicans for the delay, saying the party had gone looking for reasons to hold up a vote. Republicans' attempt to block the health care funding proposal smacked of election-year pandering, he said.
"Does the value of the life of the child mean less because the parents came here illegally? Nunez told reporters at a news conference. "I'm very disappointed in my Republican colleagues."
Republicans countered that Democrats were using the health care issue to divert attention from proposed expansions to several social service and education programs. They say the expansions would leave the state on the hook for hundreds of millions of dollars in costs in future years.
"Health care is just a portion of the bigger problem," said Senate Republican leader Dick Ackerman of Fullerton, one of the top four legislative leaders who met Wednesday to discuss the budget proposal. "We want to pay down debt, and they want to keep spending more money."
Analysts said California's expected $7 billion-plus tax windfall this year has allowed both parties to weave through the annual budget process without directly confronting the state's ongoing deficit problems.
But Stephen Levy, senior economist at the Center for the Continuing Study of the California Economy in Palo Alto, said the importance both sides had put on the policy decision of providing health care to immigrant children was unique.
"I don't remember anybody raising an issue before about money in the state budget going to the children of undocumented immigrants; I mean, emergency care money does every year," Levy said.
"But," he added, "this is the year of the national debate on immigration."
At issue in the debate are two proposed expansions to state-sponsored health care for children of poor parents.
One, proposed by Gov. Arnold Schwarzenegger, would spend $22 million to expand health care to children now on waiting lists in 18 counties that currently provide coverage to children of illegal immigrants.
Another proposal, by Assembly Democrats, would add $2 million in seed money to expand a health care program to children of parents making up to 300 percent above the federal poverty line.
The current cutoff is 250 percent of the federal poverty line under a program known as Healthy Families. Democrats want the program expanded to all children, including those of illegal immigrants.
The Department of Finance estimates the expansion would cost taxpayers $302 million annually by 2008, including $286 million in costs associated with covering children of illegal immigrants.
More than 780,000 children in the state are currently enrolled in Healthy Families, which is designed to help families who earn too much to qualify for Medi-Cal but not enough to afford private health insurance.
Republicans say the expansion could allow hundreds of thousands of illegal immigrants to apply for the coverage.
"For Democrats to sit there and want to start a new entitlement program - especially for people who are not here legally - is irresponsible," said Assembly Republican leader George Plescia of La Jolla.
Legislative Republicans also do not support the governor's plan, he said.
Republicans and Democrats also have yet to agree on how to spend $1 billion of the tax windfall to pay down state debt.
Schwarzenegger and Republican lawmakers support early pay-off of a bond used to balance past budgets, while Democrats propose putting the money in a fund that could be used to pay other costs next year.
"New revenue needs to be put into paying down debt, not new programs," Plescia said. "We're still paying off Gov. Gray Davis' deficits."
Nunez acknowledged Wednesday that he may have misjudged opposition to the plan to expand children's health care.
Last month, Nunez boldly said the Legislature had no excuse for failing to pass an on-time budget given that the state's multibillion-dollar tax windfall had taken away the need for tough cuts. On Wednesday, Nunez held a press conference saying he felt compelled to address the claim.
"Obviously, we are not going to get there," he said.
CA: "We're Not Gonna Get There" (20th straight year state budget may not pass by deadline)
http://www.freerepublic.com/focus/f-news/1649606/posts
shut er down! Considering the amount of taxes this state collects, there shouldn't be any problem covering legit expenses.
Proposition 58Isn't the proposed deficit spending a direct violation of the Constitution?The California Balanced Budget Act.
• Requires enactment of a balanced budget where General Fund expenditures do not exceed estimated General Fund revenues.
(snip)
(f) For the 2004—05 fiscal year, or any subsequent fiscal year, the Legislature may not send to the Governor for consideration, nor may the Governor sign into law, a budget bill that would appropriate from the General Fund, for that fiscal year, a total amount that, when combined with all appropriations from the General Fund for that fiscal year made as of the date of the budget bill's passage, and the amount of any General Fund moneys transferred to the Budget Stabilization Account for that fiscal year pursuant to Section 20 of Article XVI, exceeds General Fund revenues for that fiscal year estimated as of the date of the budget bill's passage. That estimate of General Fund revenues shall be set forth in the budget bill passed by the Legislature.
You think Lockyer wants to upset the apple cart? lol
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