ACMC BUDGET STRUGGLES

June 17, 2002

Scott Haggerty, President
Alameda County Board of Supervisors
1221 Oak Street
Oakland, CA 94612
Dear President Haggerty,

I regretted having to leave the Budget Hearing meeting for a work appointment today before having an opportunity to speak. There were at least 10-12 people in the chambers who came to support the ACMC in its budget struggles.  Most did not want to speak publicly but were hoping to make their presence felt through a show of hands.  However, by the time Kay Eisenhower's name was called at 5 pm, everyone had had to leave.

There are a few points I would still like to express: 

Vote Health truly appreciates that this county has dedicated all of the tobacco settlement funds for health-related projects, and we'd like to urge that the Board continues to preserve and protect the decision to do so, including $8 million in tobacco settlement funds for the current four health initiative areas.

We would like to see the BOS maintain current funding in health, with no cuts to health care providers, direct services and programs.  We hope the BOS will continue to work to close the health insurance gap by maximizing enrollment in health insurance programs, particularly Medi-Cal, through implementation of the Children and Families Health Insurance Task Force recommendation to increase access to health care and increase revenue for the County.

Progressive legislators and activists around the state understand that in order to protect funding for the fabric of our society in lean times it is necessary to explore revenue generating options to cover deficits. With Disproportionate Share Hospital Administration fees going up by $45 million and quarterly reporting for Medi-Cal being reinstated, to meet unmet health care needs we believe it will be necessary to find ways to increase revenues.  We suggest that the county revisit possible fees and fines, occupancy tax and the sale of land to do this.  We have joined together with other activists to urge that the higher tax rate for people earning more than $130,000 as individuals, $260,000 as couples be reinstated.  We ask that the BOS supports this tax also through lobbying efforts.

I've heard some sources say the next two years could be even leaner than this budget year, even if there is an economic turnaround soon.  We congratulate the board for its fiscal conservancy but ask you to consider making a public decision about what constitutes a true ³rainy day,² particularly when it means a greater number of people in our communities will go without health care. Since cuts are so severe on the state level, we'd liketo see the county reallocate some its reserves and contingency funds to avoid any cuts in the health care and social service arena.  Specifically, the ACMC is looking at $15-40 million deficit for 2002-03, which will results in huge cuts in services if we're not willing to call this a rainy day. 

We are hopeful that the BOS will be willing to work closely with and build trusting relationships with ACMC administrators and trustees to avoid closing more programs.  And we'll keep doing our part to work toward universal health care for all, so that we don't have to spend such enormous amounts of time and energy patching pieces together!

Nancy M. Friedman

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