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Press Coverage

Budget panel adds funds for kids' health insurance

Sacramento Bee
By Clea Benson
May 9, 2006

In an attempt to pressure Gov. Arnold Schwarzenegger to honor his pledge to provide health coverage for all California children, Assembly Democrats on Monday added $50 million for children's insurance to next year's proposed budget.

The vote by the Assembly budget subcommittee on health and human services means lawmakers - and the Republican governor - will have to accept or reject the proposal as they debate spending for the fiscal year that begins July 1.

About 900,000 Californians under 18 are uninsured. And only half of those children are eligible for existing government insurance programs such as Medi-Cal or Healthy Families.

Schwarzenegger has proposed increasing funding in next year's $125.6 billion budget to expand the enrollment of low-income children who already qualify for government insurance.

But the budget proposal Schwarzenegger released in January did not include any funds to provide insurance to children who are not currently eligible for Medi-Cal or Healthy Families because their parents make too much money. Last year, Schwarzenegger vetoed a bill written by Assemblywoman Wilma Chan, D-Oakland, that would have created a $300 million universal insurance program for children.

On Monday, Chan presented a revised plan that would phase in an expansion of children's insurance over the next three years. The subcommittee approved it on a party-line vote of 3-1.

Bruce Li of Schwarzenegger's Department of Finance called universal children's insurance a "worthy goal," but said the administration opposed making it an issue in the budget negotiations.

Schwarzenegger is scheduled to release an updated budget proposal on Friday.

Democrats believe it is time to act on children's insurance, Assemblyman John Laird, D-Santa Cruz, said in an interview.

"We'll never get there if we don't draw the line and make it a goal," said Laird, chair of the Assembly Budget Committee. "Health insurance for all kids will pay back in better school attendance. It will pay back in (lower) long-term medical care (costs)."

Another source of funding for children's insurance could become available if voters approve a new $2.60 per pack tax on cigarettes that could be on the ballot in November. Supporters of the tobacco tax measure say they have collected enough signatures to qualify it for the ballot and have turned them in to the secretary of state.