California ends longest budget stalemate in history; much-needed Medicaid funding to arrive
Gov. Arnold Schwarzenegger (R-CA)
Nursing home providers were among the hardest hit by the payment update delay. The signed budget releases billions of dollars in funding to nursing homes, medical clinics, various contract vendors and others.
The deadlock became prolonged, in part, over Democrats' and Republicans' disagreement over how to chip away at the state's $15 billion deficit. Democrats sought some budget cuts, but also higher taxes for corporations and the wealthiest individuals; Republicans opposed any tax increase.