The budget trickle down continues as Healthy Families prepares to drop health coverage for 60,000 poor children.
Jim Miller reports, "Several
hundred thousand low-income children face losing their health insurance
beginning Oct. 1 under a decision Thursday by the state panel that
oversees California's Healthy Families program.
"The vote is a result of $175 million in cuts to Healthy Families as
part of last month's budget-balancing package. It came despite an $81.4
million contribution to the insurance program from
a statewide
commission that gets money from a voter-approved tax on tobacco
products to pay for early childhood efforts.
"It's a grim
day for the children of California," said Wendy Lazarus, co-president
of the Children's Partnership, a national child advocacy group.
"Early next month, the state Managed Risk Medical Insurance
Board
will begin sending letters to Healthy Families participants
with
September enrollment anniversaries notifying them that their coverage
will end, effective Oct. 1."
Some of those cuts may be counteracted by First 5 California's decision to donate almost $17 million to the Healthy Families program.
Kevin Yamamura reports the state will soon stop issuing IOUs , and will cash the old ones.
"
California plans to stop paying bills with IOUs on Sept. 4 and redeem outstanding notes that same day, ending a "shameful chapter in the state's history," state Controller John Chiang said Thursday.
"The announcement means vendors, small counties and tax filers with refunds can expect to be reimbursed – with interest – just before Labor Day weekend. Some said just knowing the IOU end date brought relief since they can more easily plan the rest of their own budgets.
"Even though lawmakers and Gov. Arnold Schwarzenegger cleared the main cash hurdle more than two weeks ago by agreeing on an $85 billion state budget revision, Chiang said he cannot halt IOUs until early September because the state must make large payments to schools and creditors on the first two days of that month.
"Chiang, a Democrat, consulted with Schwarzenegger's Department of Finance and with state Treasurer Bill Lockyer before announcing an end date for the IOUs. He also called for an emergency meeting next week of a state panel that has the authority to set a new Sept. 4 redemption date, a month earlier than the Oct. 2 maturity date listed on the IOUs."
Bay Area commuters may be in for a rude awakening Monday,
as BART workers prepare to strike.
The Chron's Rachel Gordon reports, "
The decision by union leadership came after the BART Board of Directors voted unanimously Thursday to unilaterally impose a one-year contract on workers represented by Amalgamated Transit Union Local 1555.
"At this point we have no choice but to initiate a work action," said Jesse Hunt, president of the union local that represents about 900 of BART's 3,200 workers.
Both sides left the door open to renewing negotiations to end the contract dispute."
"
The American Cancer Society and other anti-smoking groups are pushing a higher tax on smoking and other tobacco use, citing increases in other states, 10 just this year, that have made California's levy relatively low.
"The Legislature's majority Democrats already have endorsed a $1.50-per-pack increase that they contend would raise $1.2 billion a year.
"Any increase in tobacco taxes, however, would require at least some Republican support because of the constitutional requirement for two-thirds votes on new taxes. So it's not surprising that tobacco companies have been ramping up their opposition, distributing a study of cigarette taxes by the Michigan-based Mackinac Center for Public Policy contending that more than a third of the cigarettes consumed in California now are from the black market."
"Two large fires in the coastal mountains of California were burning out of control this morning , forcing residents to flee their homes and leaving firefighters struggling in rough terrain.
"In the Santa Cruz Mountains, officials said two structures have burned in a 2,800-acre brush fire that has forced evacuations in the hillside communities north of Santa Cruz.
"That fire is being driven by heavy winds, and hand crews have experienced trouble reaching the fire lines. As a result, the fire is being mostly fought by air.
"That fire started Wednesday evening 10 miles north of Santa Cruz, and the cause is still under investigation. More than 2,000 people were evacuated."