Attorney General No.


Secretary of State No.



HEALTH AND LONG-TERM CARE. CONSTITUTIONAL AMENDMENT. INITIATIVE STATUTE. Creates program making health and long-term care service plans available to California residents. Program includes premium subsidies and other financing in cases of need. Residents over 65 are initially eligible, subject to restrictions. Program for younger persons to be developed. Program funded from 1/2% sales and use tax increase; 75% of revenue allocated to long-term care, 25% to other medical programs. Amends State Constitution excluding from state or local appropriations limit appropriations for purposes of measure, and any long-term care or any medically indigent health care services. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Measure would result in additional revenues of $1.2 billion in 1989-90, $1.4 billion in 1990-91, and increasing amounts thereafter. Only about thirty-five per cent of the 1989-90 revenues could be expended that year. In subsequent years, additional funds made available by the measure for long-term care and other health care services would "free-up" an unknown amount of existing state and county expenditures. State "savings" would be reallocated to additional health care services. Measure is silent as to what happens to such "freed-up" local funds. Measure exempts the new revenues and at least $1.5 billion in existing state and county revenues appropriated for long-term care services and indigent health care services from the state appropriations limit. Thus, it could potentially eliminate or reduce future taxpayer rebates otherwise required by the state appropriations limit.


Janet Levy, 219 Elmhurst Circle, Sacramento, California 95825 (916) 927-2809



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