Gov. Schwarzenegger Lobbies for California's Fair Share of Federal Funding

Gov. Schwarzenegger Lobbies for California's Fair Share of Federal Funding

In a day-long series of meetings with members of Congress and Bush Administration officials, Governor Schwarzenegger lobbied for California's fair share of federal funding. The Governor emphasized the critical importance of the State Alien Assistance Program (SCAAP), the States Children's Health Insurance Program (SCHIP), Medicare and Medicaid. He also called for more funding for education, first responder and law enforcement grants and assistance for victims of the January 2007 freeze.

Today, the Governor met with House Speaker Nancy Pelosi, Senators Dianne Feinstein and Barbara Boxer, other members of California's Congressional Delegation and U.S. Department of Health and Human Services Secretary Michael Leavitt. The Governor met with President Bush and members of the President's Cabinet at the White House yesterday.

"In a meeting yesterday with President Bush and in meetings today with members of our Congressional Delegation, I have outlined California's priorities for critical federal funding," said Governor Schwarzenegger. "California is a key driver of economic growth and innovation for the nation and a major contributor to the federal tax base. Consequently, it is a top priority for me to ensure the State is treated more fairly in the federal budget process."

"I appreciate the strong support of California's leaders in Washington D.C. who are working to help address the ongoing needs of those impacted by the January freeze. The Emergency Farm Assistance Act of 2007 introduced by Senator Boxer and a bipartisan contingent of California House members will help agricultural workers, farms and local businesses to recover from the devastation and massive loss of crops."

To push for swift passage of the Emergency Farm Assistance Act of 2007, the Governor also contacted Senators Robert Byrd (D-W.Va) and Thad Cochran (R-Miss.), the leaders of the Senate Appropriations Committee.

Governor Schwarzenegger focused on a number of budget cuts proposed by the President in this year's federal budget.

To pay for incarcerating undocumented prisoners in state prisons, Governor Schwarzenegger called for major increases to the President's budget, which proposes to cut SCAAP funding by lowering reimbursement to California by $85.6 million in 2007-08 and eliminating SCAAP reimbursement entirely beginning in 2008-09. The cuts will result in a $114.1 million loss to the state General Fund and a reduction of nearly $56 million to local California governments. California spends approximately $850 million each year to incarcerate undocumented convicts, with only a fraction of those costs reimbursed by the federal government. The Governor has also urged the federal government to pass comprehensive immigration reforms to control our borders and eliminate the need for massive SCAAP spending.

Governor Schwarzenegger also urged opposition to the President's proposed $100 billion in cuts to Medicare and Medicaid over the next five years, which will shift millions of dollars in costs to the states and reduce reimbursements to health care providers. Lower Medicare and Medicaid reimbursements and the cost of uncompensated care drive up the hidden tax that every insured individual, family and employer pays in California. Estimates place the current hidden tax at $1,186 (families) and $455 (individuals) annually. California's employers pay a hidden tax of $14.7 billion each year.

To keep up with medical inflation and to enroll currently eligible children into California's Healthy Families program, California needs up to $5 billion in new funding over the next five years. The States Children's Health Insurance Program (SCHIP) funds Healthy Families and important services for low-income children and pregnant women. The President's proposed federal budget will restrict federal SCHIP funds to children living below 200 percent of the Federal Poverty Level (FPL), reducing the amount of federal matching funds that California receives. Federal funding for the SCHIP is currently at 250 percent of the FPL. Ultimately, the Governor's comprehensive health care reforms will require expanding the SCHIP to 300 percent of the FPL, which will trigger more federal matching funds and mandate coverage for all children in California.

The Governor also opposes program funding cuts that will impact California, including:

* Reductions in Career Technical Education State Grants and Tech-Prep Education State Grants. These programs provide critical funds to develop and support career technical education in both the K-12 and community college systems.
* Elimination of the Leveraging Education Assistance Partnerships (LEAP) program. The LEAP program provides critical federal matching dollars as an incentive to California's Cal Grant need-based student aid program. Any reduction in funding will force California to supplement the federal LEAP program with monies from the State General Fund.
* Insufficient funding for federal workforce training programs under the Workforce Investment Act program. Over the past six years, funding has decreased by $216.6 million or 34.4 percent. Workforce training is a critical component of sustaining economic growth and fighting unemployment.
* A proposed 37 percent cut to the Department of Homeland Security (DHS) first responder grant program and other reductions in key areas at the Department of Justice, which provide important funding to state and local first responder and law enforcement agencies. California utilizes these grants to build important security capabilities, including intelligence gathering and analysis, performing exercises, training and coordinating communications with other agencies.

http://gov.ca.gov/index.php?/press-release/5525/