Thursday, July 9, 2009

Governor's Plans Shot Down, Twice

By Robert Gammon
Thu, Jul 9, 2009 at 2:23 PM

A federal appellate court ruled today that the state's decision to cut Medi-Cal payments by 10 percent last year in an effort to solve its budget crisis violated federal law, according to the Chron. The decision by the Ninth Circuit Court of Appeal means the governor's plan to slash such payments again this year are likely illegal as well - thereby further worsening the state's $26.3 billion budget problem. The court's ruling comes on top of a disclosure that the governor's plan to raid $2 billion from local governments will jeopardize $10 billion in federal stimulus funds for California public schools, colleges, and prisons, according to the Chron. In other words, Schwarzenegger needs to seriously rethink his budget proposal.

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