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California State Budget – The State Budget Deficit is a Perniciously Persistent and Dangerous Problem There are a number of specific rural health care issues at stake in this year’s state budget dance. So far the most harmful proposals have been rejected by the Legislature’s budget committees, but will most likely be revisited in a protracted budget standoff. Budget issues at stake include, but are not limited to:
One of the most dangerous impacts of the state budget is not even a specific proposal. It is the delay in payment to rural health care providers due to the delay in passage of the budget. A protracted budget stalemate, leading to an extraordinarily late budget, will leave many rural health care providers without cash flow. What are some of the non-health issues being sought by our state leaders in this year’s state budget debate? The Governor is looking for one part of his legacy within this state budget cycle. He would like to get serious reform of the public pension program, what has been a sacred landscape for many labor backed politicians--- but as Legislative leaders stare down into the growing maw of budget deficits, they may finally agree with his reforms. What is hanging up the Legislature and Governor and preventing them from passing a balance budget? There are four unique features constitutionally built into our California State Budget in play in our ongoing budget dilemma. Unlike the federal budget the state budget must be balanced. Passage of the budget requires two-thirds vote of the Legislature. Passage of any new tax revenues must also be supported by a two-thirds vote of the Legislature. The budget must be passed by the Legislature and signed by the Governor by June 15 each year. The first three Constitutional requirements cited above have had a major impact on the fourth Constitutional requirement, passage of the budget by June 15. A two thirds vote requires cooperation between the two parties that make up all but one seat in our state Legislature, cooperation that is made more difficult since this is an election year, with all 80 Assembly members and 20 of the 40 state Senators running for re-election. Passage of an on-time budget has occurred only once in the last 23 years, and this year is following the norm and not the exception to that rule. A prolonged budget battle will only add more difficulties to an already complex budget year. As stated earlier a prolonged budget battle will also impact the cash flow of already precarious rural health settings. California’s extraordinary supermajority vote required for passage of the budget and dealing with new revenues is unique in the 50 United States. California is the only state to require both a two-thirds vote for passing the budget and for increasing revenues when needed. The Legislature and Governor should support fundamental changes in our state’s budget process, to help avoid future budget messes like the ones we have witnessed for the last five to six years. We need the development of a process that pays attention to the legitimate concerns of minority pockets of legislators – concerning the size and shape of state government and our public program sector - but a process that allows the majority of those elected to represent this vast state to do their job in a timely fashion. Where are we now in the state budget process? Both the State Senate and Assembly’s Budget Committees have finished their work and proposed two conflicting budgets; one from the State Senate and one from the Assembly. A Conference Committee of ten Legislators--- five from the State Senate and five from the Assembly--- has been chosen to serve on a Conference Committee (Click here for more information). Only three of those ten Conferees are from districts representing rural California: Senator Denise Moreno Ducheny (D- San Diego); Assemblymember Connie Conway (R – Tulare/Central Valley); and, Assemblymember Jim Nelsen (R – Northern California Counties). The Conference Committee has been meeting since early June and is continuing to meet, but a balanced budget compromise is far from being reached. If the Conference Committee’s do not solve the budget soon the next step will be taken up by the “Big Five.” The Big Five is the name given to the meetings between the Democratic and Republican leadership from both houses and the Governor. Assembly Speaker John Perez has stated he would like to see a more open process than leaving the decision making to the Big Five, but that open process has not been publically announced yet. Do not expect the state budget to be resolved in a timely fashion this year. It is unlikely two-thirds of the Legislature will agree soon on a grand solution, and because it is unlikely any solution will contain a significant amount of new revenues to plug the growing deficit hole, expect program and reimbursement cuts. Rural health care leaders can help avoid some of the most costly program cuts by reaching out to our rural legislators and educating them about the impact various proposals could have on the thin fabric and safety net that makes up our important rural health care system. CSRHA has been working with the Legislature’s Rural Caucus to hold hearings at the Capitol to provide information about rural health in California. If you need ideas how to reach out to your local Legislators and provide information to them about health care in the communities and district they represent call us at CSRHA and we will provide whatever help we can. If you are not familiar with the state Legislature and want to find your Legislative representative’s contact information you can go to http://www.legislature.ca.gov/port-zipsearch.html or if you want to see what the budget Conference Committee is doing you can go to http://www.senate.ca.gov/ftp/SEN/COMMITTEE/STANDING/BFR/_home/ and click on the Conference Committee information you are seeking. Comments or feedback? Email us at advocate@csrha.org. |
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