On Monday, July 20th, Governor Arnold Schwarzenegger and legislative leaders announced a budget deal. While there are no publicly available documents as of this writing, this is our best summary of the proposed health care cuts in that package, and their impacts. Check the Health Access website and blog (blog.health-access.org) for the most up-to-date information. BACKGROUND: In February 2009, the Governor signed a budget for 2009-10 that included $15 billion in spending cuts to health and other vital services, as well as a spending cap plus five other proposals subject to a special election.1 On May 19, 2009, California voters rejected the spending cap and defeated other propositions that would divert funding away from mental health services and health and social services for young children. In order to address the emergence of an additional $26.5 billion General Fund budget deficit, Governor Schwarzenegger had proposed a number of extreme changes to address it, including the elimination of Healthy Families and other key health and human service programs.2