As the state faces a $18 billion deficit, majority Democrats in the legislature made a mad dash to advance a budget bill (Senate Bill 106) allocating $90 million in no-bid grants to clinics providing abortion services. Further, SB 106 exempts the grants from the Public Records Act, severing any transparency and accountability for who the funds go to and for what.
Senate Republicans opposed this measure for its secrecy and lack of accountability. They also pointed out that if “extra” funds are available for health care services, the priority should be rural hospitals, many of which are cutting services and facing closure.
“Budget bills shrouded in secrecy are an invitation for fraud,” said Senator Roger Niello (R-Fair Oaks), vice chair of the Senate Budget Committee. “Rushing spending proposals that sidestep transparency and ignore long-term structural challenges is not responsible budgeting.”
SB 106 waives both state public contract rules and the Public Records Act so that the state can issue exclusive no-bid funding contracts and keep the size, scope and specific recipients of the grants away from the public. This is governance at its worst and adds fuel to the growing accusations of rampant fraud in California’s health and human services programs.
Rural communities tend to have characteristics – such as lower patient volume, and older, sicker and poorer patients – that make operating a hospital more financially challenging, especially due to Medi-Cal rates substantially under-reimbursing actual cost. And rural hospitals are often the only critical care provider in a county, providing not just critical care but basic family care.
“For rural Californians, this conversation IS about access to care,” said Senator Megan Dahle (R-Bieber). “Hospitals are cutting services or facing closure, forcing families to drive hours for life-saving treatment. State lawmakers should prioritize stability for these communities instead of pushing through decisions that overlook their reality.”