Daily News Clips
Office of the Chancellor / Public Affairs
Monday, January 12, 2004
 

San Francisco Examiner 1-12-04

City hit hard by state cuts
By Alison Soltau

 

San Franciscans living with AIDS, elderly people needing home care and college students are among the hardest hit in a $100 million battering to The City in Gov. Arnold Schwarzenegger's proposed budget cuts.

City officials reeled Friday as details of the 2004-05 budget emerged, describing it as an assault on the needy and vowing to take the fight to Sacramento to undo some of the damage.

The $100 million loss comes from a range of budget cuts and recent loss of revenue to city governments from Schwarzenegger's repeal of the Vehicle License Fee, said Mayor Gavin Newsom. The new mayor promised to work with local Democrats of the state Legislature to ensure the budget -- as dictated on Friday -- would not pass.

"Put simply, this budget proposal is unacceptable because it hits our society's most vulnerable: the aged, the young and the poor," Newsom said Friday.

The Department of Public Health faces about an $8 million loss in revenue mainly tied to cuts to Medi-Cal reimbursement programs that serviced Laguna Honda Hospital and San Francisco General Hospital, said Greg Sass, the department's chief financial officer.

Also taking a major hit -- $20 million -- will be funding to relatives who serve as primary caretakers for sick, elderly and the homebound. The City will attempt to absorb the cuts , according to officials.

Schwarzenegger also proposes capping enrollment of the AIDS Drug Assistance Program, which helps low income people pay for expensive HIV drug therapy.

SF AIDS Foundation spokesman Redge Norton said the ADAP program needed an additional $45 million in the budget to meet increased demand for life saving drugs, but the money was not provided in the budget.

The program cuts will mean no subsidized medication for newly diagnosed people wanting to enroll in the program and reduced benefits for those already taking advantage of it, Norton said.

"This is a crisis, it's not OK to touch programs that are a life or death issue," he added. "These drugs cost $12,000 a year and most people can't afford that out of pocket, so this is going to affect thousands of San Franciscans."

HIV activists plan Tuesday to protest the proposed cuts.

Assemblymember Leland Yee said he and other Democrats would fight for funding restoration to health and education programs. "It's like when you have a family of 10 kids and you have decided that five of them are going to eat and the other five of them will starve," Yee said."That's not bipartisan work. That's not how you unite people."

The governor's $240 million or 9 percent cut of the California State University system sparked outrage from the Office of the Chancellor.

Chancellor Charles Reed said the cuts meant many qualified potential students would not be able to enroll next year. "Fewer students admitted means fewer educated citizens entering the workforce to stimulate the economy and provide the jobs that the governor stressed in his State of the State address," Reed said Friday. "Not investing in higher education will have a devastating impact on the state's economic future."