Back in the bad old days of the great recession, the California legislature diverted hundreds of millions in funding derived from a tax hospitals pay. The federal government kicks in matching funds for these taxes flowing back to the hospitals through MediCal, so it’s a sweet deal. Hospitals pay one dollar to get two back, more or less.
The recession is over, and the hospitals want their original deal back in place.
So they raised a boatload of money to put Proposition 52 before the voters. This is a “lockbox” measure, designed to give voters the opportunity to say that funds raised for or by a certain purpose must be spent in that general area as well. [Read more…]