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Senate Health Care Reform Measure Will Reduce the Federal Deficit
The non-partisan Congressional Budget Office (CBO) released a report on Tuesday stating that the bill crafted by the Senate Finance Committee will help to reduce the federal deficit. The CBO's cost estimate has found that the bill, as currently drafted, will help control the Federal government's spending on future health care costs in the long run, and may in fact help reduce the Federal deficit over time.
The CBO's cost analysis also meets the Obama Administration's requirement that the health care reform bill does not add a dime to the federal deficit. In fact CBO's cost estimate projects that the health care reform bill will help reduce the federal deficit by as much as $81 billion. The bill currently tagged at $829 billion over the next ten years would still leave about 25 million without health care coverage, with about a third of the total uninsured being undocumented immigrants.
The cost estimate is positive news for many who felt that the fate of the health care reform bill may be tenuous at best. This new cost analysis may induce Republican fence sitters to support the bill. One such Senator is Olympia Snowe (R-ME), who many expect to be the sole Republican supporter in the Senate Finance committee. Senator Max Baucus (D-MT) now appears to have a green light to have the Senate Finance Committee take a vote on the bill, which is scheduled for October 13, and we may see the bill on the Senate Floor as early as next week.
Additionally speaker of the House Nancy Pelosi (D-CA) is going to be sending three versions of the House reform bills to the Congressional Budget Office for analysis. One of the versions will have a "robust public option". The soonest the House could entertain a vote based on an analysis from the CBO is October 19, 2009.
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Senate Committee Rejects a Public Health Option--
Also rejects harmful provisions for legal immigrants!
Last week, the Senate Finance committee rejected amendments to include a public option in the bill being considered in the Finance committee as authored by Max Baucus, (D-MT). The final vote was 10 to 13 with the following Democrats voting in support of the public option, John Rockefeller (D- WV), Jeff Bingaman (D-NM), John Kerry (D-MA), Ron Wyden (D-OR), Charles Schumer (D-NY), Debbie Stabenow (D-MI), Maria Cantwell (D-WA), Bill Nelson (D-FL), Robert Menendez (D-NJ), and Tom Carper (D-DE).
Three Democrats voted against the public option, siding with the Republicans to defeat the inclusion of the amendment in the bill. The three democratic Senators include: Max Baucus (D-MT), Kent Conrad (D-ND), and Blanche Lincoln (D-AR).
Other defeated amendments were: citizenship verification for enrollment in Medicaid and tax credits, which would have required photo identification and proof of citizenship, and a rejection of the five-year waiting period for legal immigrants to be included in the tax credits.
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Governor Schwarzenegger threatens to veto over 700 bills sitting on his desk until a water deal is reached!
The Big 5, which includes the Governor, Speaker of the Assembly, Karen Bass, President of the Senate, Darrel Steinberg, Senate Minority Leader, Dennis Hollingsworth, and the Assembly Minority Leader, Sam Blakeslee, met on Tuesday to discuss over 700 bills awaiting the Governor's signature or veto. The Governor emerged from Tuesday's meeting threatening to veto hundreds of bills awaiting his signature- for the Legislature's failure to deliver a comprehensive water deal.
Although the Governor has signed a few bills this session, including a bill to help fund the Healthy Families Program, several hundred bills sit on his desk awaiting gubernatorial action. The Governor has 30 days from the last day of session, September 11, 2009, to sign or veto bills. If he does nothing, the bills become law. However, if he decides to veto the bills much of the legislature's efforts during the last session will be null and void.
On Wednesday, Majority Floor Leader Alberto Torrico, and an attorney general candidate, asked Attorney General Jerry Brown to investigate whether or not this use of the veto is an abuse of power. As more details unfold, LCHC will continue to provide updates.
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Commission on 21st Century Economy Releases Recommendations on California's Tax Structure
Last week, the Commission on the 21st Century Economy released its report containing recommendations for revamping California's tax structure. The commission was charged with seeking ways to prevent the State's revenue streams from the bust and boom cycles that we are accustomed to in California.
Among its recommendations, the Commission would simplify the personal tax structure in California by creating two tax rates. The first tax rate would be lowered from the current top basic rate from 9.3 % to 6.5 % and set another rate at 2.75 % for couples making up to $56,000 per year. This would mean that personal income tax which makes us 55 % of California's general fund revenue would decrease to 32% under this proposal.
An additional recommendation calls for a "net receipts tax". The lost revenue from the personal income tax would be made up through this newly created tax which would be levied on the services industry. Critics of this service tax fear that employers would have an incentive to fire employees and hire independent contractors since the fees to independent contractors would be tax deductible under this new tax scheme. Additionally, critics have claimed that because of the structure of the tax, businesses could be taxed even in years that they do not realize a profit.
The legislature is set to take up the recommendation of the Commission in a special session. The recommendations have received mixed reviews from legislative leaders and other policy makers in Sacramento. Advocates for low-income Californians and those who rely on state services are extremely concerned about shifting the tax burden onto working families and the most vulnerable residents considering the current economic crisis. Communities of color would be severely impacted by any shouldering of an increased tax burden.
The Assembly Tax and Revenue committee met yesterday, October 8, and will meet again today to review the recommendations of the Commission. There will be opportunities for public comment at the end of both hearings which will take place in room 126 from 10:00-1:00 and 2:00-4:00 P.M. Advocates can also call their legislators directly to voice their concerns about the Commission's recommendations. For more information about the specific recommendations, please go to www.cotce.ca.gov or the California Budget Project at www.cbp.org.
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Upoming Affilitate Events
Los Angeles
What: Advanced screening of CNN's "Latino in America"
by MALDEF
Where: MALDEF Offices
634 S. Spring Street, Edison Room, Los Angeles, CA
When: Thursday, October 15 from 5:30 pm - 7:30 pm
What: "El Poder Verde" - Green Jobs Summit
by the California Latino Legislative Caucus
Where: Bonaventure Hotel, Los Angeles, CA
When: October 29 & 30
What: Vision Health Fair: Seeing is Believing
Where: The National Sanctuary of Our Lady of Guadalupe
711 T Street, Sacramento, CA
When: Sunday, November 15 from 9 am - 4 pm
What: Adolescent Health Summit
Where: Joe and Vi Jacobs Center
4040 Euclid Avenue, San Diego, CA
When: Friday, November 6 from 7:30 am - 3:15 pm
Pre-Conference Reception November 5 from 6 pm - 8 pm
at San Ysidro Health Center, 1275 30th Street, San Diego, CA
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Upcoming LCHC Events
Bay Area Regional Meeting
Friday, October 16 from 10 am - 1 pm
La Clinica De La Raza
3451 East 12th Street, Oakland, CA
Central Valley Regional Meeting
Friday, November 13 from 10am - 1pm
Location TBD
Contact: Marcia Davalos - Director, Regional Networks
phone: 916-448-3234 mdavalos@lchc.org
Latino Health Alliance Policy Briefing and Reception
"The Health Status of Latinos in California- the State Budget, Federal Health Care Reform and Beyond"
Monday, October 19 from 2:30 pm - 4:30 pm
Room 2040, California State Capitol
"Evening Reception to Welcome Thomas A Saenz, President and General Counsel, MALDEF, and honoring Senator Gil Cedillo, Los Angeles-D"
Monday, October 19 from 5 pm - 7 pm
Zocalo, 1801 Capitol Avenue, Sacramento, CA
Contact: Marcia Davalos - Director, Regional Networks
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