Panel kills Schwarzenegger’s health plan

Los Angeles Times, January 29, 2008

Gov. Arnold Schwarzenegger's plan to arrange medical insurance for nearly all Californians was rejected by the state Senate. Lawmakers called the plan, which passed the Assembly, "fundamentally flawed" and "a fairy tale." Senators added the proposal might fall apart financially in a few years, leaving the state to cancel its new healthcare services or put taxpayers on the hook for billions of dollars more. They said it was too risky a financial commitment when California faces a $14.5-billion budget gap that could force them to cut existing healthcare programs--Schwarzenegger has already proposed $2.9 billion in healthcare cuts over the next 18 months.