October 17, 2008

State Budget Cuts

Schwarzenegger played a key role in getting the Wall Street Bailout passed, but California is not the only state that is suffering the consequences of deficit spending. Hawaii is feeling the crunch, so they are cutting a program. One wonders if cutting benefits to children (that are now dependent on the state, thanks to the state) with 2 weeks notice is really the best place to start cutting - especially when the budget of the Governor is almost $4 million. Also, the Hawaii Department of Defense is funded in part by $10 million in state bonds.

But, the comments of state and health officials about the failure of the only state-run universal health care for children are entertaining:

"People who were already able to afford health care began to stop paying for it so they could get it for free," said Dr. Kenny Fink, the administrator for Med-QUEST at the Department of Human Services. "I don't believe that was the intent of the program."

...

"We're very disappointed in the state's decision, and it came as a complete surprise to us," said Jennifer Diesman, a spokeswoman for HMSA, the state's largest health care provider. "We believe the program is working, and given Hawaii's economic uncertainty, we don't think now is the time to cut all funding for this kind of program."

The state official is shocked that good intentions alone can't change the laws of economics. The main beneficiary of this corporatist pyramid scheme is maintaining that the scheme was working just great. Does anyone really believe these people are that stupid?

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