Politics & Government

Obama's budget plan doesn't include California bailout

President Barack Obama's budget is not a California rescue plan.

Gov. Arnold Schwarzenegger wants $6.9 billion in additional federal money to help plug the state's $19.9 billion deficit, but Obama's plan provides only about $1.5 billion, according to Schwarzenegger officials.

On the plus side, Obama proposed extending federal stimulus dollars for Medicaid — Medi-Cal in California — equal to $1.5 billion, according to Schwarzenegger's Department of Finance.

But the president did not propose altering the formula that determines how much states receive permanently in Medicaid reimbursements, which Schwarzenegger sought for another $1.8 billion.

Obama proposed just $330 million for all states to house illegal immigrant inmates. Under Obama's plan, California finance officials believe the state would receive only $90.5 million of this money — and none of the additional $880 million the governor wanted.

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