Budget Cuts Could Jeopardize Federal Funding

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(Sacramento, CA)
Friday, May 22, 2009
The governor wants federal approval to cut $750 million from Medi-Cal. But the California Budget Project says that means the state could lose more than a billion dollars in federal money. The elimination of Healthy Families is also on the table. That program gives health insurance to about a million low-income kids. Cutting it would result in a loss of more than $700 million.
Anthony Wright is with the advocacy group Health Access California. He says losing this federal money will not only hurt health programs but the state’s economy. 
“That’s why some of these cuts really are irrational and reckless and other alternatives including revenues need to be considered.” 
By revenues Wright means more taxes. But the governor says in this recession there's no room for tax increases to help bridge the state's $21 billion budget shortfall.
Next week the governor will give more details on what cuts he’ll recommend the Legislature should approve.