California: Budget Cuts Threaten AIDS Funding

California Gov. Gray Davis' office has asked a group of HIV/AIDS service organizations to suggest how to cut $20 million to $40 million out of next year's state AIDS budget, according to Dana Van Gorder, director of state and local affairs for the San Francisco AIDS Foundation. "Our biggest concern is to protect [the AIDS Drug Assistance Program]," he said. If ADAP cuts go through, Van Gorder fears California will have to resort to a waiting list, as many states have, or to removing drugs from the formulary.

The cost of California's ADAP was approximately $185 million in 2002-2003, of which the state contributed $67 million. Van Gorder expects the program’s needs to grow by another $20 million to $30 million in the next budget cycle to keep pace with growing enrollment and increasing drug costs. California's 2002-2003 AIDS budget is approximately $834 million, of which the federal government funds $432 million.

Davis already announced that provider rates for Medi-Cal, which serves as an HMO to many AIDS patients, will be cut by 10 percent this year as a result of emergency reductions to the budget, if the Legislature concurs. San Francisco’s general fund and other state funds have always had to chip in to make up the difference, said Jimmy Loyce, deputy AIDS program director for the San Francisco Department of Public Health.

According to Eric Bauman, Davis' aide, the $10.2 billion in mid-term cuts to this year's budget do not include any direct cuts to HIV services. "Obviously the 10 percent reduction will have some impact, but AIDS prevention, ADAP, and other services are not directly impacted," Bauman said.

The Legislature convened in a special session on Dec. 9 to consider the mid-year cuts. Democrat and Republican leaders immediately began debating fee increases versus program cuts.

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