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8�-� BALLOT MEASURE UPDATE CALPERS BOARD VOTES ON One week following the LOCAL coalition SIGNIFICANT ISSUES AFFECTING endorsement of Governor Schwarzenegger CONTRACTING AGENCIES budgeUconstitutional protection package there was progress on several fronts to further develop the 38 HOSPITALS DROPPED proposal and widen support for it. The CaIPERS Board voted on Wednesday, • The group of legal and fiscal experts M4y 19, to significantly change the structure of its working on technical issues met to draft further health benefits program. These decisions will refinements to the language for the constitutional directly impact cities and counties that contract measure, in preparation for submitting the package W�th CaIPERS for health insurance services. to the legislature for consideration. The CaIPERS Board also voted, by recom- • League Executive Director Chris McKenzie mendation from staff, to drop 38 high-cost hospi- spoke at a breakfast of potential major donors tals from its statewide network of 225. The move hosted by LA County Supervisors Antonovich and is seen as an attempt to send a message to Knabe, and Los Angeles Councilmember Smith. Sutter MediCal Group and others th8t thel� hlgh Held at the California Club in Los Angeles, over 40 costs for hospital services will not be tolerated in attendees from a cross-section of businesses the CaIPERS health system. participated in a discussion of the LOCAL initiative and the governor's alternative proposal. The co- In total, 13 Sutter hospitals were dropped, as hosts spoke favorably of the package negotiated Well as others run by Catholic Healthcare West, with the governor, and participants expressed Sharp and Tenet. The decision was expected to interest in supporting our efforts. save $36 million next year and $50 million thereaf- • League lobbyists, joined by other lobbyists ter. CaIPERS Board members clarified that they representing local government agencies, contacted Would welcome back any hospitals if they Iowered most legislators to brief them on the package and their prices. urge their support for it. Legislators are being asked to reject any amendments that would alter For a complete list of hospitals and information the basic construct of the constitutional measure. on which areas will be most affected visit the LOCAL lobbyists are stressing that attempts to use Employee Relations web page at the constitutional measure to push additional fiscal www.cacities.org/er, or email contact Amy Brown reform concepts such as a sales tax-property tax at �arownaCa�cacities.orq and email your fax num- swap would lead to the coalition's opposition of the ber. measure, and a return to LOCAL support of the initiative for which LOCAL has already submitted signatures to place the measure on the November Regional Pricing 2004 ballot. The CaIPERS Board also voted to implement • Regional fundraisers continued to set up regional pricing for contracting agencies in the events or meetings with potential donors through- PEMHCA program for 2005. This mechanism out the state. Individual local officials continue to allows the Board and staff to structure the pre- send out fundraising letters or make fundraising mium payments so they are lower in the southern calls on their personal time. portions in California and higher in the Northern agencies. Approve regional factors for contracting City Officials: We Need You! Please contact agencies will be capped at 10% and smoothed to your legislators to urge their support for quick adjust for the 10% cap. passage of the package — without amendments that would alter the key "deal pnints" reached between �t is clear that if contracting agencies in low LOCAL and the governor. A draft letter or talking cost areas continue to leave CaIPERS, costs will points is available on the League's Website Advo- cacy Center: www.cacities.org/advocacycenter. Continued on Page 5 PAGE 2/PRIORITY FOCUS Visit the League's Official Web Site--www.cacities.org