Gov. Arnold Schwarzenegger's (R) proposed $6.4 billion cut to state health and human service programs will lead to the loss of 42,000 jobs in California, according to a report released Friday by consumer group Health Access, the Sacramento Business Journal reports.
Most of the health and human services cuts in Schwarzenegger's proposed fiscal year 2011 state budget come from Medi-Cal, California's Medicaid program, and Healthy Families, the state's Children's Health Insurance Program. Both programs receive federal matching funds.
According to the Health Access report, nearly 10% of California residents are employed in health care and social assistance positions.
The report also found that a proposal to eliminate the In-Home Supportive Services program would result in the loss of more than 370,000 home-care jobs in California.
In addition to the job losses, the state would experience about $2.7 billion in lost business activity due to the proposed program cuts, according to the report (Robertson, Sacramento Business Journal, 3/26).