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Beware the Blue Pencil

When Governor Arnold Schwarzenegger signed the budget last Friday, he used his line-item veto authority — commonly referred to as “the blue pencil” — to make $1 billion in additional cuts. By cutting spending more spending, the Governor freed up money in the budget to be used as state reserves (also called the “rainy day fund”).

There were some hits to healthcare, including cuts to:

• Mental health services;
• HIV/AIDS prevention and treatment programs.
• Community health clinics;
• Community-based services for seniors;
• Prostate cancer treatment programs; and
• Substance-misuse services.

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