FY 2008-09 Budget Update

As was reported in the January/February 2008 issue of PolicyWatch, Governor Schwarzenegger’s January proposed budget included sweeping cuts to public health care programs—cuts that will be especially problematic for low-income Californians living with HIV/AIDS who depend on public support for medication and medical care. These cuts directly affect programs at the state Office of AIDS, as well as broader-based health care programs such as Medi-Cal. The San Francisco AIDS Foundation contends that these cuts will not only complicate the disease’s challenges but will actually increase expenses, as rising rates of illness and HIV infection among people who lack access to primary medical care will place additional burdens on the state.

The Foundation, in alliance with other leading HIV/AIDS organizations across the state, opposes all of the HIV-related and other health care cuts and has specifically focused on fighting the proposed cuts to the AIDS Drug Assistance Program (ADAP), the Therapeutic Monitoring Program (TMP), and the Medicare Part B Premium Payment Program. HIV advocates have also joined forces with other low-income health care advocates to oppose the Medi-Cal cuts, focusing on the 10% provider rate cut and the elimination of optional benefits.

The Assembly and the Senate budget subcommittees are currently holding public hearings on these items, giving representatives from state agencies, the Department of Finance, the Legislative Analyst’s Office, and the community a chance to voice their specific concerns about the cuts as well as to make funding recommendations. On April 14, the San Francisco AIDS Foundation and Women Organized to Respond to Life-threatening Diseases (WORLD) brought clients from San Francisco, Oakland, and Berkeley to Sacramento to testify before the Senate Budget Subcommittee on Health about the effects these cuts—particularly those to ADAP and TMP—would have on them personally. They were joined by ten clients from the Southern California HIV Advocacy Coalition, and their voices were a powerful reminder for the committee members about the real-world effects of the current proposed budget.

The next step in the budget process is the “May Revise,” released on or around May 15, when Governor Schwarzenegger will present his updated budget based on changes to the state’s revenues and expenditures. This revision will include the latest economic updates, ensuring that the most up-to-date information is considered before the budget is enacted. The Legislature’s final budget decisions on the State Office of AIDS and other health programs facing cuts will be made after they have this information. HIV/AIDS advocates are also working with the Legislature and the State Office of AIDS to see if there are additional dollars in the Special Fund (where pharmaceutical rebate money is housed) that can be used to offset the cuts to ADAP and other programs. This information should be available around the time of the May Revise, as well.

We will continue to keep our readers thoroughly informed of developments regarding the FY 2008-09 budget that affect people with HIV and AIDS