Clock in at the WC Blog

Hey folks. I am sure you have noticed the lack of posting lately. As the title indicates this will be the last post. The Working Californians blog is going dormant for the time being.

You can continue to find my postings over at Calitics and any number of other outlets.

Thank you for being such loyal readers. See you around the blogosphere.

Julia

Today the Senate Health Committee voted 7-1 not to advance AB 1x1 the massive health care reform bill championed by Speaker Fabian Nunez and Governor Arnold Schwarzenegger. That means health care reform legislation is killed for the year given the timing to make it on the ballot. Chron:

Shortly before the committee hearing, Senate President Don Perata, D-Oakland, said in a letter to Gov. Arnold Schwarzenegger that he does not support the measure because it lacks adequate funding and could worsen the state's budget problems.

The measure, which passed the state Assembly last month, needs the backing of a majority of legislators in each house before it can be sent to the governor, who supports it.

Schwarzenegger, speaking to the editorial board of the Chronicle, said he will do everything he can to keep the measure alive.

"I'm not taking 'no' for an answer," he said. "We've come a long way to get as far as we have ... this is the last mile."

The $14 billion plan was the product of more than a year of negotiations between the Republican governor and leaders of the Legislature's Democratic majority. The proposal had the backing of a diverse group of corporate, labor and consumer groups but failed to attract the necessary six votes from the 11-member health committee largely because of concerns over the long-term costs of the plan.

The amount of resources mobilized for this fight was enormous. Many groups and organizations poured many man hours and dollars into advancing this cause and then this specific piece of legislation. It is a bitter end to a noble goal: reforming our health care system. Our health care system is a disaster, yet fear of the unknown determined the outcome. We could not ensure that the expenses would not out strip revenues a crucial calculation given our state's current precarious fiscal state. It was not clear how much this bill would impact working middle class Californians. The plan was attacked from the right and the left.

The good thing is that this is not the mid-nighties all over again. When the budget situation improves we will again have a shot at reforming the system. This loss does not mean we have to wait a decade before working hard to enact sweeping change.

This is a victory for the status quo today, but we have a chance in the not too distant future to enact the reforms legislators dared against all odds to advance this past year. There were many more reasons for this to fail than to pass. That will not change the next time we take a shot at it. Hopefully we will learn some lessons from this fight and have a better chance the next time. They sure did a lot better than we did nationally in the mid-90s.

The supporters of AB 1x1 are pulling out all of the stops. A group of health care reform leaders signed a letter to Sen. Shelia Kuehl urging her to support the bill. Sen. Kuehl is a huge proponent of single payer and has stated she will not support the bill sitting before her committee. It cannot pass unless she votes for it or Sen. Perata replaces Sen. Yee from the comittee.

Here is the letter they sent (h/t to Anthony)

Stephen Johnson is the EPA chief who rejected his own staff's recommendations to grant California a waiver to regulate our own greenhouse gas emissions. Senator Boxer hauled him in front of the environmental committee she chairs for a grill session to see what the heck prompted him to ignore science and decades of legal precedent. LAT

"I was not directed by anyone," Johnson said at a hearing before the environment and public works committee, denying he had been influenced by political pressure from the White House or anyone else. "This was solely my decision."

Johnson failed to mollify Sen. Barbara Boxer (D-Calif.), the committee chairwoman and perhaps his fiercest critic, who vowed to press ahead with her investigation into how the EPA chief reached his decision. Within hours of his testimony, she introduced legislation -- co-sponsored by 17 senators, including Democratic presidential front-runners Hillary Rodham Clinton of New York and Barack Obama of Illinois -- to overturn the decision.

Good. They should. There appears to be no reasonable explanation for the rejection other than the car industry doesn't like California regulating its own air.

In his first Capitol appearance since denying California's request late last month, Johnson drew the ire of other Democratic senators whose states also want to enact greenhouse-gas-emission standards for new cars and trucks that are more stringent than the federal government's.

"Your agency's decision to deny California a waiver just defies logic to me," Sen. Amy Klobuchar (D-Minn.) told Johnson. "It's clearly a decision, I believe, that's based on politics and not on fact."

Boxer called Johnson's decision "unconscionable" and accused him of going against the advice of his legal and science advisors and siding instead with the auto industry, which has resisted California's efforts to implement its tailpipe law.

There are fifteen other states that have sided with California and want to enact the same regulations we passed.

The EPA has stonewalled Boxer's attempts to get information on the decision. They even went to far as to cover up some documents with duct tape. Yes duct tape. It would be amusing if the subject were not so important to our quality of life.

In all reality it will likely take a new administration and a Democratic at that to let the states regulate their own greenhouse gas emissions.

The state simply does not have enough money in our bank accounts to pay our bills. That means we will need to borrow a bunch of money. Bloomberg:

Jan. 24 (Bloomberg) -- California may need to borrow as much as $9 billion later this year to pay bills, as the most populous U.S. state faces its biggest cash shortage since 2003, a budget official said.

Governor Arnold Schwarzenegger's finance office estimates the state will need to sell $9 billion of short-term notes in September to cover cash needs for the fiscal year that begins July 1. That compares with $7 billion borrowed in November for this year's operations.

The cash crunch springs from slowing revenue growth over the last 12 months following the worst housing market slump in 16 years. Schwarzenegger last year saw a budget surplus transformed into a $14 billion deficit. Fitch Ratings has warned that California's credit ratings on $49 billion of debt are in danger because of the cash shortage.

The worse our credit ratings, the more expensive it is for us to borrow, just like any other borrower. This is somewhat routine for the state, but it is a jarring number all the same.

Today was the day the AB 1x1 was to be brought up in the Senate Health Committee. It didn't. Senator Don Perata asked to delay the vote until Monday since there were not enough votes to pass the bill. To complicate matters the Legislative Analyst came out with her report that had enough consternation about cost containment for the state that it made Senators nervous about moving forward. AP:

Given the Democrats' resistance, it seemed unlikely Perata could obtain the votes without changing the composition of the 11-member panel, although he has said he does not plan to do so. The committee's four Republican members have been opposed to the bill as an expensive and unnecessary expansion of government into the private health care system.

Democrats also sounded queasy about the potential expense, and they sought assurances that the state would not be saddled with new costs.

"It just seems to me that we go into it with a little more certainty of what the price might be," said Sen. Darrell Steinberg, D-Sacramento. "Otherwise we don't go forward."

There are many more reasons for legislators to say no to major health care reform than to say yes. That does not mean that the bill shouldn't pass or that it is impossible to pass reform, but rather that this was always an uphill battle. The state of the economy and the budget made the odds even worse. It is providing an easy out for Democratic legislators who might otherwise be supportive.

Legislative Analyst Elizabeth Hill fed their fears with a report that undermined the administration's insistence that California can extend medical coverage to millions of uninsured people without having to spend additional state money.

More likely, she said, the new health care program would become a drain on the state budget. Hill said she estimated conservatively that within five years, the program would cost the state between $300 million and $1.5 billion a year.

"What you have in front of you is by no means the worst-case analysis," Hill said.

There is no way to guarantee that the cost of insurance will not rise at a higher rate than they anticipated. There are outs for the state. It's not as if it would be on the hock for the plan no matter what. Safety measures were built in. Howevier, if the legislators feel like it is more likely than not that we will encounter a situation where the costs exceed the revenue in the near future then it is not worth it for them to support a plan that they believe is headed for failure.

There are hard choices ahead for Senator Perata. Does he want to pull Yee or Kuehl off of the committee, or let this die a quiet death?

The status quo of our health care system is unacceptable, but that does not automatically translate into passage of this plan, no matter how well constructed.

Things are not looking very good for the prospect of health care reform in California at the moment. The bill AB 1x1 is going to come up in the health care committee tomorrow. Sen. Kuehl, the chair of the committee already indicated she would not support it. That meant if only one other Democratic Senator on the committee pulled their support the bill would not be able to advance on a straight vote. CapAlert has the goods.

On the eve of a hearing for landmark health legislation, a spokesman for Sen. Leland Yee said the San Francisco Democrat will oppose the health care measure. The move throws into limbo whether the legislation has the necessary votes to move forward.

“The costs are a big concern for him,” said Adam Keigwin, a spokesman for Yee, regarding the $14 billion health care price tag that coincides with a projected $14.5 billion budget hole.

We have not yet see the report from the Legislative Analyst that Perata requested. This seems to be an early indication that the report was not particularly favorable.

Meanwhile the It's Our Health Care coalition just sent out an email encouraging their members to contact their Senators.

If the Senate doesn't pass AB x1 1 this week -- first out of the Health Committee tomorrow, then, if it passes there, on the Senate floor shortly afterwards, health care reform in California will be dead for the year.

A golden opportunity will be wasted. Health care reform here in California and at the national level will be dealt a body blow. And millions of Californians who could have been helped will be left to suffer the consequences of a deteriorating and dysfunctional health care status quo.

If you want to change the status quo and support reform this year, call your Senator now!

Click here to look up your Senator's phone number and call them today!

Senate process allows for Perata to request that Kuehl pass the bill on without voting. However, it is unclear if he is interested in having her do that. Perata does also have the power to pull Lee from the committee and replace him with someone who will vote for the bill. However, Perata has been throwing considerable cold water on the whole thing and it does not seem like he is inclined to force the issue.

It is a real shame to see so much time and effort come down to this. California had a real shot at passing significant, historic health care reform. The odds have always been stacked against it, just like they are right now. Ever the eternal optimist, I still believe they could get this thing done. It is really up to Perata.

The governor has finally come around to reality. Reforming California's school system will require a huge investment in our children's future and we simply do not have the funds to do that this year. Arnold said this and more in an interview with the LAT editorial board.

But he also talked about investing more in some of the same government programs he once complained were bloated and inefficient.

The message has ceased to be that schools can do more with less.

Now, he said, properly reforming the state's education system could come with a hefty price tag.

Because of the need for funds, Schwarzenegger said, he would put off his plans for an ambitious overhaul of the state educational system until more money is available.

"We have to analyze and bring everyone in the education community together and look at all the reforms and look at if that means we need extra money to do all those things," the governor said.

"To say: 'The funding we leave off the table completely . . . because we don't have any money, but we want to do those reforms,' that is not the way it works."

He is sounding all the right notes at the moment with regards to his plans for his "Year of Education". The same cannot be said of his approach to the budget. He has already lined up the schools as a target for huge cuts.

It has come down to this: will any Democratic Senator on the health care committee vote against the proposal besides Sen. Shelia Kuehl? The Capitol Weekly has all of the wonky details:

The Senate Health Committee is chaired by Sen. Sheila Kuehl, D-Santa Monica, who is openly opposing the bill. Kuehl’s opposition gives the bill’s supporters a single-vote margin on the 11-member health committee.

That means that any Democrat on the committee could single-handedly sink the proposal. And not all of the committee members are sure they’re going to vote for the bill. Kuehl, who has promised an exhaustive examination of the proposal, delayed the first hearing by a week.

“The issue I have is that we have a $14 billion shortfall,” said Sen. Leland Yee, D-San Francisco. “We are cutting services like you cannot believe. So how can we pay for a new health care plan?”

The Senate, in particular this committee is moving slowly on this proposal to examine all of the details. This will not be a repeat of the rapid fire passage of the energy deal during the Enron crisis. AB 1x1 is a major piece of legislation that should impact just about every single Californian. I for one am glad that it is being gone over with a fine tooth comb.

Here is a clear sign that the speculation about Arnold's intentions in proposing a grossly unacceptable budget has some merit. He told the SacBee that he does not expect that they actually close the 48 parks he had called to close in his budget.

Gov. Arnold Schwarzenegger said Wednesday he proposed closing 48 state parks to "rattle the cage" at the Capitol, but fully expects lawmakers to come forward with alternatives -- including higher fees -- to keep parks open.

"The budget is always a proposal ... There's the reality, and the reality will rattle the cage," Schwarzenegger said during a meeting Wednesday on a wide range of issues with the Bee's editorial board.

Last week the governor released a $101 billion general fund spending plan that was balanced largely through government spending reductions. Closing 48 state parks would eliminate 136 positions and help the parks department save 8.9 percent of its budget -- or $13.3 million.

That is $13.3 million out of a $15 billion budget deficit. This was a very high profile proposal, with little fiscal gain, designed to fire up people. It worked.

Current analysis suggests that increasing fees will drive down attendance exacerbating the problem, not solving it.