Obama Administration officials Tuesday denied a request from California lawmakers for federal financial bailout assistance, according to recent reports. The Golden State faces a $24 billion budget deficit for the upcoming fiscal year beginning July 1.
“The outlook beyond June continues to look cloudy,” according to the California Association of Health Facilities in a recorded state budget update.
Strict state regulations prevent lawmakers from collecting additional funds through raised taxes, so Gov. Arnold Schwarzenegger (R) has proposed a series of drastic cuts to state services, including the state’s Medicaid program (known as Medi-Cal), which helps fund the majority of California nursing homes. Each day brings the state closer to insolvency and compromises the state’s ability to maintain health services and education programs, The Washington Post reports.
As state lawmakers now scramble to fix the state budget without the reassuring support of a federal bailout package, CAHF believes that long-term care funding will remain in jeopardy throughout the legislature’s budget debate over the next few months.