Governor Signs $146 Billion 2007-08 Spending Plan, Uses Line-Item Veto to Reduce Health Care Spending
[Posted 08/31/07]

Governor Schwarzenegger made sizable reductions to the health care budget last week before ultimately signing a $146 billion state spending plan for 2007-2008. The governor’s line-item vetoes totaled $700 million, with the largest line-item reduction ($332 million) coming from from the Medi-Cal reserve account. The administration predicted a surplus in reserve funding for the $14 billion Medi-Cal program, so the reduction should not affect Medi-Cal services or provider reimbursement.

Despite these line-item cutbacks, funding for most health care programs remains similar to previous years.

More information on the budget as it relates to health care is available at the governor's website.

Contact: Lisa Folberg, 916/444-5532 or lfolberg@cmanet.org.