Judge blocks California budget cut to hospitals for Medi-Cal

Saturday, December 31, 2011

SACRAMENTO - A federal judge has blocked a California state budget cut that would have affected rural patients, the latest indication that courts will have the last word on Medi-Cal reductions.

Gov. Jerry Brown and lawmakers cut reimbursement rates to a variety of Medi-Cal providers by 10 percent to save $623 million in their June budget. Physicians, pharmacists and hospitals, among others, have argued that the cut to California’s already low payment rates would discourage providers from accepting Medi-Cal patients and reduce access.

U.S. District Court Judge Christina Snyder issued a preliminary injunction Wednesday blocking the specific rate cut to nursing units within hospitals, many of which are located in rural California. Snyder determined that the California Hospital Association and other plaintiffs had a reasonable argument that the state had failed to appropriately review whether Medi-Cal patients would lose sufficient access to care.

The state Department of Health Care Services will ask the court to reverse the injunction and file an appeal with the U.S. Ninth Circuit Court of Appeals, a spokeswoman said Friday in an e-mail.

Physicians and pharmacists have filed a separate suit asking the court to block the rate cut to their services. The court filings come after the Obama administration approved most of California’s Medi-Cal cuts in October.

In a separate case before the U.S. Supreme Court this fall, White House and California officials argued that groups such as the California Hospital Association should not be able to challenge cuts to Medi-Cal, the state’s Medicaid program serving low-income children and people with disabilities. If the high court rules in favor of California, the state will have more leverage to cut Medi-Cal in the future, while health care advocates will have fewer ways to challenge budget reductions.

Capitol Alert Sacramento Bee

California High Court Says State Can Eliminate Redevelopment

Thursday, December 29, 2011

SACRAMENTO - In a significant budget win for Gov. Jerry Brown and lawmakers, the California Supreme Court ruled Thursday the state can eliminate the local agencies that subsidize construction in blighted areas.

The decision strengthens the state’s ability to take funds from redevelopment agencies for the current budget. It also provides leverage for state leaders to use more than $1 billion annually in redevelopment property tax dollars to balance future budgets.

The court called the elimination of redevelopment “a proper exercise of the legislative power vested in the Legislature by the state Constitution.”

But justices ruled invalid a second bill that would have reconstituted redevelopment agencies in a different form. That decision spells the agencies’ demise unless lawmakers pass a new redevelopment plan when they return next month.

Lawmakers counted on raising $1.7 billion from the two-bill package. The court’s ruling on the second measure may result in less money this year but more in future years from property taxes that would have otherwise gone to redevelopment.

“Today’s ruling by the California Supreme Court validates a key component of the state budget and guarantees more than a billion dollars of ongoing funding for schools and public safety,” Brown said in a statement this morning.

Chris McKenzie, executive director for the League of California Cities, said he was still reviewing the decision and would respond later today.

State leaders axed redevelopment agencies in June as they closed a deficit once projected at $26 billion. As part of the plan, cities could reorganize the agencies only if they agreed to use their money to pay for state obligations this fiscal year and make smaller contributions in future years.

Cities and redevelopment agencies sued the state in August to block the plan, saying it was akin to the state demanding a “ransom payment.” Critics in the Legislature said the state could ill afford to subsidize private developers, pointing to venues such as “Dive Bar,” a watering hole steps from the Capitol that features a mermaid tank.

The state’s high court agreed to fast-track the case. By issuing a decision today, the court gave state leaders guidance before Brown proposes his 2012-13 budget in less than two weeks.

Capitol News Alert/Sacramento Bee

Federal Shutdown Update

Friday, December 16, 2011

WASHINGTON D.C. - Congress is expected to pass the omnibus appropriations act funding the remaining spending bills today in time to avoid a government shutdown at midnight.  Some highlights: DOD and IHS is looking at a funding increase along with the Army Corps of Engineers and VA. National Park Service may get cut.

There are no bad federal employee provisions in the bill (i.e. no extended pay freeze, no increase in pension contributions, cuts to federal workforce etc. 

Shasta County Professional Unit Meets

Wednesday, December 07, 2011

The Union members of the Shasta County Professional Unit met on November 30, 2011 at the Union office. The members present discussed the negotiation’s that will begin early next year. The members were concerned about the possibility of increases to their health insurance and other reductions of pay and benefits. The members asked for a survey to be mailed out to all of the Union members to gather feedback for the upcoming negotiation’s. The survey is being prepared for mailing and our next meeting has been scheduled for January 18, 2011 starting at 5:30 P.M. at the Union office.

City Manager Threatens Union Officials

MILPITAS - Milpitas City Council pulled City Manager Thomas Williams raise from the consent agenda tonight and ended the meeting without addressing his compensation at all.  Williams walked up to union officials and used intimidation tactics clearly projecting retaliation against city employees in 2012 for standing up for what they believe in. Its unknown if this agenda item will reappear anytime soon. 

UPEC Objects to City Manager Raise

Tuesday, December 06, 2011

MILPITAS - Milpitas employees represented by UPEC Local 792 are outraged at their City Manager wanting raises in salary and benefits.  Milpitas City Manager Thomas Williams wrote up his increases under the “Consent Calendar” item 27 for automatic approval at tonights City Council meeting. Milpitas employees have given up over 16% in salary and benefits to save the City budget, keep people employed and provide vital services to city residents. “This is exactly the kind of thing that reminds us of the City of Bell, California”, said UPEC Business Manager Chris Darker. “Top officials helping themselves at public money while stepping on those who are on the front lines”, Darker said. The City Manager wants protection from being terminated as an “at will” employee and wants only to be terminated for cause. This is bad public policy for leaders in such a position. Second, if Williams gets fired or the City Council wants to oust him or he gets tired of his City Manager job, Williams will get a years salary in a lump sum. Thats well over $200 thousand dollars maybe closer to $300K with benefits. Third, Williams wants lifetime medical benefits for he and his spouse paid by the local taxpayers. Fourth, a 2% Cost of Living RETRO-ACTIVE 2.5 years. This guy must think that City employees are asleep at the wheel. UPEC Representatives are standing up tonight for UPEC members and are demanding this item be pulled from the consent calendar.