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FOR IMMEDIATE RELEASE
Monday, October 10, 2005
For Media Assistance

Governor Vetoes AB 772, AB 1199
Vetoes Leave Nearly 1 Million CA Children Without Health Insurance

"First of all, I think it is important that we take care of our children. And we have to make sure that every child in California is insured; that is the most important thing." -- Gubernatorial Candidate Arnold Schwarzenegger, Statement from 9/24/03 debate.

SACRAMENTO, Calif.--The PICO California Project and the 100% Campaign reacted today to Governor Schwarzenegger's veto of two key health care bills, AB 772 (Chan/Frommer/Escutia) and AB 1199 (Frommer/Chan). The bills would have established health coverage for every child in California.

"It was within our reach to make sure that every child in California has access to affordable health care," said Ted Lempert, President of Children Now and spokesperson for the 100% Campaign, a collaboration of Children Now, Children's Defense Fund and The Children's Partnership. "We are disappointed in the governor's decision to veto these two bills that together would have created health insurance for every child in California."

"The Governor again expressed support for our proposal, in concept, in his veto message," Lempert added. "Unfortunately he also believes that California cannot afford to insure all kids this year. We disagree with the governor. First and foremost, AB 772 and AB 1199 were practical and fiscally sound. The legislation envisioned a system of shared responsibility for financing among federal and state governments, parents, and employers. Moreover, it proscribed a prudent, phased-in timetable consistent with responsible management, yielding only very modest start-up costs in the first year. Ultimately, the legislation represented a long-term investment in our children's health that would have paid dividends in California communities now and for generations to come."

"For not a lot of money, we could have reached a monumental goal," said Rebecca Stark of the PICO California Project. The legislation extended health insurance to more California children, and also simplified the current child health insurance system by reducing barriers to getting and keeping health insurance. "We currently waste tens of millions of dollars re-enrolling eligible children. Removing bureaucratic obstacles can generate significant state savings, which we could invest in children's coverage," according to Stark.

More than 100 organizations as diverse as businesses, faith-based organizations, health care providers, educators, and community based organizations, supported AB 772 and AB 1199. Small Business California, an association of small businesses, supported the legislation. "Healthier kids mean a stronger economy and a more productive workforce," said Scott Hauge of Small Business California. "With the rising cost of premiums hurting everyone, the small business community strongly supports innovative efforts to insure more children and make health care more affordable," said Hauge.

PICO and the 100% Campaign vowed to pursue their goal of insuring all of California's children. "An overwhelming majority of Californians support covering all children with health insurance. The Legislature wants it to happen. Doctors, teachers and parents want it to happen. Having built such momentum, in 2006, we will sponsor very similar legislation in the form of Senate Bill 437, authored by Senator Escutia," said Stark. SB 437 was introduced earlier this year and currently awaits action on the Assembly Floor. "We look forward to continued discussions with the governor and his administration, so that we can reach the shared goal of covering all kids."

Key provisions of AB 772 include:

  • Provides health insurance options for every uninsured child in California
  • Makes it easier for families to enroll and keep their children covered
  • Builds on the successes of local Children's Health Initiatives (CHI's)
  • Creates a system of shared responsibility for financing
  • Phases in the program on a timetable consistent with responsible management and available resources

AB 1199 (Frommer/Chan) would have created the California Healthy Kids Fund as a repository for public funds and private contributions that would supplement existing state and federal funds earmarked for children's health care.

The 100% Campaign, a collaborative effort of Children Now, Children's Defense Fund and The Children's Partnership, with primary funding from The California Endowment, was created to ensure that all of California's children obtain the health coverage they need to grow up strong and healthy.

The PICO California Project is the united effort of 20 California congregation-community organizations affiliated with the PICO National Network. Collectively, we represent 350 congregations and 400,000 families statewide and are actively organizing in over 70 cities in Northern and Southern California.