California Black Media

California State Budget: Legislature Announces Counter Proposal to Gov’s 2024-25 Plan

Last week, members of both houses of the California legislature discussed plans to close the state’s $27.6 billion budget gap, restore funds to build housing, preserve social services, and help the state save money. The legislative hearings on the budget took place nearly three weeks after Gov. Newsom presented the May revision of his 2024-25 annual spending plan.

Published

9 months ago

June 11, 2024

Oakland Post

California Assembly Speaker Robert A. Rivas.

By California Black Media

Last week, members of both houses of the California legislature discussed plans to close the state’s $27.6 billion budget gap, restore funds to build housing, preserve social services, and help the state save money.

The legislative hearings on the budget took place nearly three weeks after Gov. Newsom presented the May revision of his 2024-25 annual spending plan.

On May 30, Assembly Speaker Robert Rivas (D-Hollister) and Senate Pro Tem Mike McGuire (D-North Coast) announced a joint legislative budget proposal on May 30 that saves approximately half of the state’s reserves for future budget years.

“Fixing California’s deficit means making tough choices, so the Assembly came to these negotiations focused on preserving programs that matter most to Californians: lowering the cost of living, expanding affordable housing access and sustaining public services,” said Rivas.

The Democratic Party Budget Committee reviewed the governor’s proposed spending plan to remove various programs and reduce funding for agencies statewide. Newsom’s proposed cuts to public schools across California prompted teachers’ unions to push back with advertisements pressuring the governor to reconsider his budget plans.

The California Teachers Association argued that public schools could lose billions in the next few years resulting in a loss of teachers and resources in the state.

“This agreement is sound and makes the necessary tough decisions meeting the needs of this critical time, all while maintaining our commitment to strong public schools, investing in desperately needed resources in homelessness and workforce housing, health care access, resources to keep our communities fire safe, key climate investments and more,” said McGuire.

H.D. Palmer, a spokesperson for the Department of Finance, said that Gov. Newsom agreed to a temporary arrangement with the teachers’ union to delay spending cuts. The parties agreed to suspend Proposition 98, a law that guarantees an annual minimum amount of funding for public schools.

“The result of that is an agreement we can both support, and that advances two shared goals: avoid multi-billion-dollar cuts to schools in the near term and provide greater predictability for school budgets in the long term,” said Palmer.

The State Senate held budget hearings this week to finalize the plan due by June 15. By state law, once the budget plan is passed, the Governor will have to finalize it by July 1, the beginning of the new fiscal year.

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Oakland Post: Week of February 26 – March 4, 2025

The printed Weekly Edition of the Oakland Post: Week of February 26 – March 4, 2025

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February 28, 2025

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Oakland Post: Week of February 19 – 25, 2025

The printed Weekly Edition of the Oakland Post: Week of February 19 – 25, 2025

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February 22, 2025

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Two New California Bills Are Aiming to Lower Your Prescription Drug Costs

“When basic life necessities like medication become unaffordable in Blue States, working people pay the price. As Democrats, we should be leading on making people’s lives better and more affordable,” continued Weiner. It is past time California caught up with other states and put basic protections in place to contain the astronomical cost of basic medications.”

Published

2 weeks ago

February 17, 2025

Oakland Post

iStock.

By Edward Henderson, California Black Media

Sen. Scott Wiener (D-San Francisco) has introduced two bills in the State Senate that could lower prescription drug prices for California residents.

Senate Bill (SB) 40, or the Insulin Affordability Act — and accompanying legislation, SB 41, or Pharmacy Benefit Manager (PBM) Reform — comprise Wiener’s Prescription Drug Affordability (PDA) Package.

Together, the bills would cap monthly co-pays for insulin at $35 (SB 40) and create regulations for pharmacy benefit managers (PBM) whose negotiation practices, critics say, have resulted in steep price increases for prescription drugs (SB 41).

“It makes no sense that people with diabetes in states like West Virginia can access affordable insulin while Californians are stuck with higher prices,” said Wiener in a statement.

SB 40’s proposed $35 monthly co-pay was written, in part, in response to the price of insulin tripling over the past decade, Wiener’s office says. As a result of the increase, one in four people using insulin has reported insulin underuse because they can’t afford the full dose.

About 4,037,000 adult Californians have diabetes, with an additional 263,000 cases of Type 1 diabetes diagnosed each year. This rate in new cases disproportionately affects the elderly, men, and low-income patients, Wiener’s office reports.

According to Wiener, SB 41 is his follow-up to similar legislation he introduced last year, SB 966, which was vetoed by Gov. Newsom.

Middlemen in the pharmaceutical industry, PBMs buy prescription drugs from manufacturers and then sell them to pharmacies and health plans. Their position as intermediaries allows them to charge high administrative fees and significantly higher prices for drugs to pharmacies than they paid originally. This practice results in higher costs for patients seeking the prescriptions they need.

“On behalf of the Californians we serve who live with chronic and rare diseases, we are grateful to Sen. Wiener for his commitment and attempt to hold pharmacy middlemen accountable for their anti-patient and anti-pharmacy practices,” stated Liz Helms, California Chronic Care Coalition President & CEO. “Health care costs continue to rise when patients cannot afford medically necessary medications.”

SB 41 proposes that all PBMs be licensed and that they disclose basic information regarding their business practices to the licensing entity. It also calls for a number of other requirements and prohibitions, including limiting how fees may be charged and requiring transparency related to all fees assessed.

“This bill addresses some of the worst abuses by pharmacy benefit managers: lack of transparency, unfair business practices, steering, and price gouging,” said Jamie Court, President of Consumer Watchdog.

In 2022, drug spending in California grew by 12%, while total health premiums rose by just 4%. Last year, more than half of Californians either skipped or postponed mental and physical healthcare due to cost, putting their safety and well-being at risk. One in three reported holding medical debt, including half of low-income Californians.

So far, there is no organized opposition to the Prescription Drug Affordability package.