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Schwarzenegger's Proposed Budget Would Cut Federal Matching Funds

A new analysis says the governor's proposed budget would cause California to lose nearly one-and-a-half billion dollars in federal matching funds. The Assembly Budget Committee says the losses would b

Schwarzenegger's Proposed Budget Would Cut Federal Matching Funds

A new analysis says the governor's proposed budget would cause California to lose nearly one-and-a-half billion dollars in federal matching funds. The Assembly Budget Committee says the losses would be due primarily to cuts in the Medi-Cal program. KPBS Reporter Kenny Goldberg has the story.

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For every dollar California spends on Medi-Cal, it gets two from the federal government. Governor Schwarzenegger wants to cut Medi-Cal spending by one-billion dollars. He would do that by reducing the rate Medi-Cal pays doctors, and by eliminating certain services. State Senator Sheila Kuehl says that could have a ripple effect.

Kuehl: Because if you are not getting just basic care under Medi-Cal, everybody is sort of forced to rely on emergency rooms, which crowds them even further."

The governor wants to cut all state programs by ten percent. The non-partisan Legislative Analyst argues all programs do not have equal value.

Kenny Goldberg, KPBS News.

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