CDA opposes Propositions 44 and 40

November ballot measures jeopardize health care access

CDA has taken an oppose position on two of the 14 ballot measures California voters will see on their November general election ballots.

Proposition 44

This measure creates penalties on Federally Qualified Health Centers (FQHCs) that spend less than 90% of revenue on "program services" that advance their charitable purpose. FQHCs are community clinics providing primary care to medically underserved areas and populations. There are more than 1,000 active FQHCs in the state with 70-80% offering some level of onsite dental services.

These clinics are non-profits subject to existing federal and state regulations that include mandatory spending requirements, public audits and reporting of clinic spending. Prop. 44 would enact unrealistic, narrow and vague new rules limiting spending on essential staff, services and equipment that are critical to delivering patient care, such as X-ray or CT machines, information technology and expanding or upgrading clinic facilities.

This measure would significantly affect FQHC's ability to continue operating or maintain the same level of dental and other health services.

The opposition to Prop. 44 also includes the California Primary Care Association (which represents more than 2,000 health clinics), California Medical Association and California Hospital Association.

Proposition 40

This measure creates a one-time tax on the assets of billionaires. In addition to being a one-time tax, rather than sustainable, long-term help for the state's budget issues, the measure has little specifics on how funds would be spent, with no assurances of any funding for Medi-Cal reimbursement rates.

Additionally, the measure could worsen state budget volatility by further increasing reliance on the volatile wealth of the highest earners, who could relocate or move their money in other ways to avoid the tax. Consequently, Prop. 40 could be detrimental to the Medi-Cal Dental budget, which is already suffering from severe uncertainty and needs more long-term stability.

The measure is opposed by Democratic and Republican leaders along with many groups affected by the state budget, including healthcare providers, business, labor, firefighters, law enforcement and education groups.

More information on these two measures is available at No on Prop 44 and No on Prop 40.

A full list of measures on the November ballot is available on the California Secretary of State's Website.