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Gov. Gavin Newsom addresses reporters on new state legislation for the reopening of schools at Barron Park Elementary in Palo Alto on March 2, 2021. Photo by Magali Gauthier.<\/p>\nGov. Gavin Newsom addresses reporters on new state legislation for the reopening of schools at Barron Park Elementary in Palo Alto on March 2, 2021. Photo by Magali Gauthier.<\/p>\n
Gov. Gavin Newsom wants Americans to see him as the antithesis to President Donald Trump. So Santa Clara County officials could be forgiven for thinking he\u2019d shield them from federal cuts to public health care. Instead, they question whether he\u2019s effectively enabling the president\u2019s agenda.<\/p>\n Newsom\u2019s January budget message tosses aside new spending proposals \u2014 including ones that could help defend counties from\u00a0losing funds<\/a>\u00a0for Medi-Cal, CalFresh and other social safety net services \u2014 in favor of protecting state coffers from deficits. This is despite a higher-than-expected, $42 billion revenue surge softening the state\u2019s $3 billion projected shortfall this year.<\/p>\n County leaders and statewide government experts said Newsom\u2019s budget proposal forces counties to\u00a0absorb the impacts of H.R. 1<\/a>, Trump\u2019s watershed spending bill that\u2019s projected to slash $1 billion in hospital and social services funding from the county budget annually. If Newsom\u2019s proposal becomes cemented in state budget talks this summer, counties would be left to backfill the full cost of care for their\u00a0poorest and most vulnerable residents<\/a>, putting assets such as public hospitals at\u00a0greater risk of closure<\/a>.<\/p>\n The proposal has especially vexed observers who can\u2019t escape Newsom\u2019s daily attempts to go viral with social media posts imitating Trump\u2019s rhetoric, projecting himself as a worthy opponent to the federal administration.<\/p>\n \u201cNot only is the governor\u2019s budget message not proactive \u2014 it\u2019s not even reactive. It\u2019s basically non-responsive to H.R. 1,\u201d County Executive James Williams told San Jos\u00e9 Spotlight.<\/p>\n Finance officials under Newsom\u2019s administration are pushing back. The Governor\u2019s budget message stated H.R. 1 is projected to cost the state an additional $1.4 billion in the coming year, with $1.1 billion of that money associated with Medi-Cal.<\/p>\n \u201cThe budget accounts for and absorbs those costs at the state level \u2013 and does not pass them along to local governments,\u201d Department of Finance spokesperson H.D. Palmer told San Jos\u00e9 Spotlight.<\/p>\n Palmer added the state doesn\u2019t have the bandwidth to absorb all the new restrictions for health and social service programs approved by Congress. In October, the federal government will cut Medi-Cal funding about 200,000 for some\u00a0undocumented\u00a0immigrants, people granted asylum and folks in other non-citizen categories.<\/p>\n \u201cIf the state were to assume coverage for these individuals under full-scope Medi-Cal, the additional annual cost to the state is estimated at $1.1 billion,\u201d Palmer said. \u201cGiven that the state has to close a projected shortfall of nearly $3 billion next year, and $22 billion in the following year, the state is not in a position to take on these additional costs that result from of the changes made in Washington.\u201d<\/p>\n Palmer noted that the 200,000 affected people will still be eligible for emergency and pregnancy-related coverage.<\/p>\n \u201cAs debate and discussion on the budget continues this spring, the Administration will continue to have discussions with the Legislature on these and other issues that are the result of Washington\u2019s decision to change the rules,\u201d Palmer said.<\/p>\n Williams said Newsom\u2019s budget proposal doesn\u2019t show the kind of leadership California needs amid threats to\u00a0health care in the state.<\/p>\n \u201cInstead, what you see in the governor\u2019s budget proposal is the implementation of these federal cuts,\u201d Williams said. \u201cThat\u2019s an abdication of leadership and responsibility. We are looking forward to working with the Legislature and governor\u2019s office because we know we can do a lot better. We have shown what proactive legislation can do if we take a strategic and proactive approach.\u201d<\/p>\n Late last year, county leaders campaigned for a five-eighths-cent sales tax increase to bring in an estimated $330 million annually to soften the blows of H.R. 1. Voters\u00a0approved the tax increase in November<\/a>. Without it, county leaders warned of devastating cuts to their public hospital system, which has become California\u2019s second largest. Even with that additional revenue, officials have stated publicly that cuts to the system will need to happen either way.<\/p>\n Public hospitals like those in Santa Clara County represent just 6% of the state\u2019s total hospitals while providing more than 50% of all trauma and burn services, according to the California Association of Public Hospitals. The association\u00a0shows public hospitals\u00a0train nearly half of all new doctors across the state<\/a>.<\/p>\n \u201cThat backbone has to be protected and preserved by our state government,\u201d Williams said.<\/p>\n Williams\u2019 concerns are largely echoed by the California State Association of Counties (CSAC), which advocates for the interests of municipal governments in the state. The group is particularly concerned about three areas in Newsom\u2019s budget proposal.<\/p>\n One is the removal of approximately $233 million in funds for In-Home Supportive Services recipients whose in-home care hours increase after their services commence. The group also warns that Homeless Housing Assistance and Prevention funds will go down from $1 billion in prior years to $500 million. Cities and counties are still waiting for the state to distribute the $1 billion that was earmarked 18 months ago.<\/p>\n District 4 Supervisor Susan Ellenberg, who called Newsom\u2019s proposal \u201cextraordinarily problematic,\u201d is in a unique position. This year, she was elected president of CSAC, which puts her in a primary role as the voice of California\u2019s 58 counties. That means efforts to adjust Newsom\u2019s budget vision, in a way that helps counties, will fall on her. And her frequent presence in Sacramento will be required.<\/p>\n \u201cThe January budget message is the opening salvo,\u201d Ellenberg told San Jos\u00e9 Spotlight. \u201cIt doesn\u2019t mean it\u2019s the last word, but certainly starts us at a significant deficit. We\u2019ll be working with legislators up and down the state in part to educate them because of legislator turnover and term limits.\u201d<\/p>\n Namely, Ellenberg aims to bridge a disconnect between Sacramento lawmakers and the ground-level municipal leaders who carry out their laws.<\/p>\n \u201cThe Legislature functions as lawmaking bodies, and we are the service implementers directly facing our clients every day,\u201d Ellenberg said.<\/p>\n