The cuts in health seem to be similar to what has been proposed before: severe cuts in eligibility and benefits. One new element is the elimination of the First Five Commission, which would need to be approved by voters. And there’s LOTS of ugly cuts in human services.
The cuts are the LAST thing we want to do in a recession. Nobel Prize-winning NY Times columnist Paul Krugman castigates Governor Schwarzenegger and explains why in a economic downturn when private spending is low, it makes no sense to cut public spending. It’s Hoover economics. The LA Times editorial board makes a similar point, targeted to the Republican legislators who have pledged to oppose any taxes, thus forcing these cuts and even worse: the case for opposing these cuts is not just on humanitarian grounds, but economic reasons as well.
And for health care, given the federal matching funds we lose, the economic impact of cuts is even worse.
It’s good that the Governoris now proposing taxes and revenues to bridge the gap, but we need to do more to prevent the proposed cuts.