California Gov. Jerry Brown released an updated state budget proposal (pdf) — California currently faces a $15.7 billion deficit for 2012-2013, up from its earlier estimate of $9.2 billion — and hospitals face roughly $280 million in cuts from Medi-Cal and other funding sources.
The California May budget revision includes $103.9 billion in total funding for the Health and Human Services Agency. However, it calls for reducing supplemental payments, grants and other reimbursements to private hospitals by $150 million in 2012-2013. (In 2013-2014, those cuts would equal $75 million.)
Public hospitals also stand to lose $40 million in government reimbursement, and private safety-net hospitals will lose $86 million based on budget cuts proposed in January (pdf).
Gov. Brown plans to balance the budget cuts, such as those to Medi-Cal, with tax increases. A proposed initiative on the November ballot would temporarily raise the personal income tax on the state's wealthiest taxpayers for seven years and increase the sales tax by 0.25 percent for four years. That measure is expected to generate roughly $8.5 billion through the next budget year.
The California May budget revision includes $103.9 billion in total funding for the Health and Human Services Agency. However, it calls for reducing supplemental payments, grants and other reimbursements to private hospitals by $150 million in 2012-2013. (In 2013-2014, those cuts would equal $75 million.)
Public hospitals also stand to lose $40 million in government reimbursement, and private safety-net hospitals will lose $86 million based on budget cuts proposed in January (pdf).
Gov. Brown plans to balance the budget cuts, such as those to Medi-Cal, with tax increases. A proposed initiative on the November ballot would temporarily raise the personal income tax on the state's wealthiest taxpayers for seven years and increase the sales tax by 0.25 percent for four years. That measure is expected to generate roughly $8.5 billion through the next budget year.
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