Daily Report

Major Medi-Cal changes raise questions

February 22, 2012, 12:05 AM | Christina Jewett, California Watch

ideabug/istockphoto.com

Sweeping changes for the state’s medical program for the needy are taking shape, even as legislative advisers and advocates raise major questions.

Changes include more seniors being routed to managed care programs, a reinvention of how hospitals are paid and the collapse of two state agencies that currently serve beneficiaries.

On Friday, the nonpartisan Legislative Analyst’s Office cautioned against Gov. Jerry Brown’s plan to rapidly expand a pilot project that places patients who rely on Medi-Cal and Medicare into managed care programs. The pilot also would affect Medi-Cal beneficiaries with disabilities. Both groups include about 1.9 million people, the analyst's office estimates.

The governor’s office estimates that the change would improve care and save the state $679 million this year. It estimates the savings would total $1 billion in future years.

 

The analyst’s office urged lawmakers to reject a "premature" statewide expansion of a four-county pilot project that puts high-needs patients in managed care.

“We recommend the Legislature reject the governor's proposal to expand the demonstration statewide before the results from the demonstration have been properly evaluated, but proceed instead with the...

Feds ask judge to drop Calif. postal records suit

February 22, 2012, 12:05 AM | Corey G. Johnson, California Watch

Brigaid/Flickr

The battle lines have been drawn in an unusual public records spat between a state agency responsible for upholding election laws and the U.S. Postal Service.

The U.S. Department of Justice yesterday asked a federal court to dismiss a California Fair Political Practices Commission lawsuit accusing the U.S. Postal Service of withholding records.

The commission regulates the political activities of public officials, lobbyists and campaign committees and enforces California's campaign reporting and disclosure requirements, conflict-of-interest rules, and election laws.

It sued the post office last month after postal officials refused to provide unredacted copies of a school board candidate's mailing records. The commission is investigating whether the candidate, William Eisen, a former member of the Manhattan Beach Unified School District's board, violated election disclosure rules...

Lack of primary and preventive care sends thousands to hospitals

February 20, 2012, 12:05 AM | Bernice Yeung, California Watch

José Goulão/Flickr

Better access to primary health care and prevention programs could have kept thousands of California adults out of hospitals, according to a new statewide analysis.

According to new data released last week by the Office of Statewide Health Planning and Development, there were more than 335,000 adult hospitalizations in California that could have been avoided if the patient had seen a doctor sooner.

According to the state agency, so-called “preventable hospitalizations” are an indication of systemic shortcomings related to access to quality primary care.

“These are people going into the hospital that probably shouldn’t be if they were getting good primary care up front,” said Michael Kassis, a research specialist with the office.

Poor environmental factors and a failure to follow medical treatment also could prompt these avoidable hospital stays, the agency said.

 

The latest figures are based on an analysis of 2009 hospital inpatient discharges by state-licensed facilities of 13 “prevention quality indicators,” or readily treatable medical conditions such as chest pains and dehydration...

As tobacco sales fall, state budget suffers

February 20, 2012, 12:05 AM | Kendall Taggart, California Watch

shira gal/Flickr

Fewer smokers is bad news for California’s budget. A major bond rating agency sounded an alarm this month, saying the state may have borrowed more than $4 billion against settlement money that might never materialize.

A little more than a decade ago, 46 state attorneys general reached a settlement with the four biggest tobacco companies. The companies agreed to pay an estimated $246 billion over a 25-year period to compensate states for tobacco-related health care costs. But there is one quirk: The settlement payments are not fixed, but linked to tobacco sales.

Rather than waiting for annual payments, the state and some local governments decided to borrow money against their anticipated future revenue. All told, they’ve issued $16 billion in bonds since 2001.

 

Major bond rating agencies and some municipal finance experts have warned for years that the number of smokers was decreasing more rapidly than expected.

In December, California had to dip into its reserves to cover bond payments. Dick Larkin, director of credit analysis at Herbert J. Sims & Co., said there were two reasons: fewer smokers and a dispute with the tobacco companies that has resulted in delayed payments...

Calif. weak on oversight of for-profit colleges, advocacy groups say

February 17, 2012, 12:05 AM | Erica Perez, California Watch

bo1982/istockphoto.com

California's recently formed Bureau for Private Postsecondary Education has significant weaknesses in its oversight of for-profit colleges, advocacy groups told lawmakers at a hearing this week.

The agency's lax approach limits its ability to police abuses in the for-profit sector, said Jamienne S. Studley, CEO of Public Advocates Inc., a nonprofit law firm and advocacy group in San Francisco.

During the joint information hearing of the Assembly Higher Education Committee and Senate Committee on Business, Professions and Economic Development, Studley recommended that the bureau strengthen its approval process, demand more disclosures from approved institutions, verify information received from colleges and more.

Nationally, for-profit colleges have the highest share of students who default on their student loans. The sector enrolls 1 in 10 college students in California, but receives more Cal Grant dollars from the state than all the community colleges combined.

 

A 2010 report from the College Board shows the six-year graduation rate for first-time, full-time students is 22 percent at four-year for-profit colleges, compared with 55 percent at public four-year institutions and 65 percent at private four-year colleges...

State looks at spending, regulations for SF Bay bar pilots

February 17, 2012, 12:05 AM | Will Evans, California Watch

Courtesy of San Francisco Bar Pilots AssociationBar pilots board commercial ships to guide them into Bay Area ports.

California’s 56 bar pilots provide a vital service, boarding commercial ships as they approach a buoy west of the Golden Gate Bridge and guiding them through dicey Bay Area waters. A giant sandbar in the bay gives bar pilots their name and helps make the zone one of the most treacherous ports in North America.

Bar pilots also make a handsome living, splitting the spoils of a state-sanctioned monopoly that earns them about $400,000 a year each – costs borne by the shipping industry. They take business-class trips to France for training, which they sometimes combine with European vacations. And they work seven days on, seven days off – enough for one full-time pilot to spend more time working as a real estate agent, according to a legislative staff report [PDF]...

Traffic officials following the few checkpoint rules that exist, auditor finds

February 17, 2012, 12:05 AM | Ryan Gabrielson, California Watch

versageek/Flickr

California traffic safety officials have followed the few rules that exist for overseeing sobriety checkpoints set up by hundreds of police departments, the state auditor reported yesterday.

No federal law or state statute governs what happens at the roadway operations, according to the auditor's report. And the California Office of Traffic Safety is not required to closely monitor what happens at checkpoints it funds, which now number more than 2,000 a year.

Chris Murphy, the traffic safety office’s director, said the audit validates that the state funds lawful, lifesaving checkpoints.

“It speaks volumes to the work that my staff and law enforcement is doing,” Murphy said. “The checkpoint program has been running very efficiently and effectively.”

 

Fatalities on California’s roadways dropped nearly 12 percent from 2009 to 2010, which Murphy partially attributes to checkpoints.

The traffic safety office spent $16.8 million for police overtime at more than 2,500 operations during the 2010 fiscal year. Auditors noted that those sobriety checkpoints resulted in almost 28,000 citations to unlicensed drivers, compared with roughly 7,000 drunken driving arrests...

Foreclosure mediation could save billions

February 16, 2012, 12:05 AM | Kendall Taggart, California Watch

Jeff Turner/Flickr

New research says it pays to help struggling homeowners.

Thousands of Californians have lost their homes during the housing crisis, wreaking havoc on families, as well as state and local government property tax revenue. But there is an inexpensive solution, according to a report released last week by the National Consumer Law Center.

The study focuses on programs in 19 states that require mortgage companies to have supervised meetings with troubled homeowners and neutral third parties, such as housing counselors, before foreclosing on a property.

“Evidence shows that effective foreclosure mediation can keep paying borrowers in their homes for the long term while also saving billions of dollars for taxpayers and investors,” said Geoff Walsh, an attorney at the National Consumer Law Center and author of the report.

 

California doesn’t mandate many of the protections that the report says are crucial for preventing fraud and abuse. State law requires a mortgage servicer to file a statement that says it tried to contact the homeowner 30 days before it files a notice of default. Unlike some other states, California does not require a third party to supervise discussions between a servicer and homeowner...

In Marin County, poverty exists alongside wealth

February 16, 2012, 12:05 AM | Patricia Leigh Brown, California Watch

Patricia Leigh Brown/California WatchAn ice cream vendor sells treats after school at in San Rafael's Canal area in Marin County.

Those wanting to check the socioeconomic pulse of the Canal area of San Rafael need only peruse the bulletin board at The Canal Alliance, a nonprofit center serving the neighborhood’s largely low-income Spanish-speaking population.

Diabetes y Su Salud,” reads one flier about diabetes and health. “Cuartos de Renta,” says an advertisement for rooms for rent. Many Canal-area residents live in crowded apartments shared by multiple families, in which living rooms equipped with microwaves often are rented as a separate space.

In “A Portrait of Marin,” a report released last month by the Marin Community Foundation, which measures education, health and income disparities in the county’s 51 census tracts, the Canal area ranked lowest in community well-being. Wedged between Highway 101 and the bay, the neighborhood is a densely populated triangle of land that is predominantly Latino...

Whitman, former finance chair for Romney, gives little funding this time

February 15, 2012, 12:05 AM | Lance Williams, California Watch

megwhitman2010/FlickrMitt Romney (left), Meg Whitman and former California Gov. Pete Wilson

Update:  In a filing five days after this report was posted, Romney's Restore Our Future PAC reported a $100,000 donation from Whitman.

Back in the 1980s at Boston’s Bain & Co. business consulting firm, partner Mitt Romney mentored a promising young executive named Meg Whitman.

More than two decades later, when Whitman ran for governor of California, Romney and Bain gave her significant support.

Romney donated $25,900 – the maximum allowed by state law – and Bain executives pumped an additional $216,000 into Whitman’s losing campaign against Democrat Jerry Brown.

Now, Romney is battling to nail down the Republican presidential nomination. But so far at least, Whitman hasn’t proved a significant source of political money for Romney, records show.

The powerful California corporations with Whitman ties – online auction house eBay, where she was CEO before running for governor, and Hewlett-Packard, where she became CEO last year – haven't stepped up for Romney, either.

 

Federal Election Commission records show Whitman donated $2,500 to Romney’s campaign last year. She gave $5,000 more to his Free and Strong America PAC, through...

Researchers to examine revamp of public health

February 15, 2012, 12:05 AM | Christina Jewett, California Watch

BrianAJackson/istockphoto.com

As California continues to forge ahead implementing health reform, state Medi-Cal leaders and UC Davis researchers announced an agreement to examine public health system transformation efforts that may serve as models for the nation.

The researchers will evaluate public hospital systems as they revamp daily operations in ways meant to simultaneously reduce health costs and improve patient health.

New programs are taking shape under California’s Medi-Cal “waiver,” a $10 billion program that is part of the state’s effort to prepare for a major influx of beneficiaries who will be covered when the Affordable Care Act expands eligibility in 2014.

The waiver was adopted to set aside some federal Medicaid requirements so California can reshape systems, shifting from an emphasis on responding to health crises to preventing them altogether.

 

The Department of Health Care Services, which operates the Medi-Cal program, last week announced a $4.25 million agreement with the UC Davis Health System’s Institute for Population Health Improvement...

Under federal pressure, Mendocino pulls plug on marijuana program

February 14, 2012, 12:20 AM | Michael Montgomery, California Watch

Michael Montgomery/California WatchGeorge Unsworth holds a banner stenciled with his Mendocino County marijuana permit number at a remote farm near Covelo. 

This week, officials in Mendocino County, Northern California, are expected to pull the plug on an unusual program that put pot growing under supervision of the local sheriff. It was the first effort of its kind in the nation and proved a success, at least in the eyes of many locals. But, as Michael Montgomery reports, federal prosecutors took a different view.

TRANSCRIPT:

Reporter Michael Montgomery: Call it weed détente. For years, Mendocino County, like other places in Northern California, struggled to contain an explosion in pot growing, especially since the state legalized the use of medical marijuana. So two years ago, officials decided to try something completely new – legalize medical marijuana production under strict conditions. And they gave the job to a barrel-chested sheriff's sergeant named Randy Johnson.

Randy Johnson: Prior to July, when the program started, what I knew about marijuana was chop it down and haul it to the evidence locker. (Crowd laughs.)...

New rail leaders hope to 'make things right' in Central Valley

February 14, 2012, 12:20 AM | Tim Sheehan, The Fresno Bee

California High-Speed Rail Authority

California High-Speed Rail Authority leaders acknowledge they have “a lot of damage to undo” with Central Valley farmers and property owners along the route of the proposed train system.

As political battles loom in Sacramento over issuing $2.7 billion in bonds to begin building the system later this year in the Valley, authority chairman Dan Richard said a new business plan and new leadership are focused on “what it’s going to take to make those things right” and rebuild the agency’s credibility.

Richard was joined yesterday by authority Vice Chairman Tom Richards, a Fresno developer and board member Michael Rossi, a former vice president of Bank of America, in a meeting with Fresno County transportation officials and leaders from the county’s cities about the $98 billion train project.

 

“All three of us are dealing with a history here that has not been good,” Richard said yesterday.

Richard and Rossi were named to the authority’s board last summer by Gov. Jerry Brown; Richards was appointed by then-Gov. Arnold Schwarzenegger in late 2010.

A major obstacle will be acquiring the right of way for the tracks from businesses, homeowners and farmers along the route – a challenge made greater by what Richard called the authority’s “ham-handed” discussions with worried...

Stanford grad continues fight to get off no-fly list

February 14, 2012, 12:05 AM | G.W. Schulz, California Watch

Olastuen/Flickr

The federal appeals court ruling last week on gay marriage in California overshadowed other potentially big news in the legal community. 

A quieter decision Wednesday by the 9th U.S. Circuit Court of Appeals has enabled Stanford University Ph.D. graduate Rahinah Ibrahim to clear another hurdle in her now years-long battle over the nation’s no-fly list, conceived to stop suspected terrorists from boarding airplanes.

The three-member panel ruled 2-1 that Ibrahim could continue to challenge [PDF] her 2005 detention at San Francisco International Airport, where police placed her in a holding cell for two hours. The ordeal eventually led to her being barred from re-entering the United States, a prohibition that continues today.

She’d arrived at the airport on Jan. 2, 2005, with her daughter and needed wheelchair assistance due to complications from a hysterectomy. The two were headed for Malaysia, where Ibrahim intended to present her doctoral research at a conference sponsored by Stanford.

 

Instead, officers from the San Francisco Police Department placed her in handcuffs and gave no reason for why she was being held. The government generally does not disclose if or why an individual is on one of its many watch lists...

Nearly $3B in energy loans could default

February 14, 2012, 12:05 AM | Daniel J. Goldstein, California Watch

Robert Galbraith/Reuters

A report commissioned by the Obama administration to re-examine the Department of Energy's loans to clean energy companies after the bankruptcies of the first two loan recipients, including Fremont-based Solyndra, found that close to $3 billion in loans could be at risk for default, which is in line with the department's own internal estimate.

The report [PDF], by businessman Herbert Allison and released Friday, says $2.7 billion is needed for so-called credit subsidy cost, the reserve amount that is budgeted to cover the risk of non-payment to the government. In its initial estimate, the Department of Energy's own loan program office had estimated that the cost of the credit subsidy for the loans would be about $2.9 billion.

The department's loan program, which has been a lightning rod for criticism by Republicans, got its start under the Bush administration. It was given more than $36 billion in 2009 as part of the stimulus program, which had a September 2011 deadline of getting the money to applicants. The demand for swift loan turnaround worried the Government Accountability Office, which had criticized the loan program in a July 2010 report – even before Solyndra's bankruptcy and the bankruptcy of New York-based...

Air pollution might harm brain, study says

February 14, 2012, 12:05 AM | Susanne Rust, California Watch

AVTG/istockphoto.com

It’s well established that dirty, sooty air is no good for your lungs and probably not great for your skin. But new research indicates it can damage your brain, too.

A study in the journal of the Archives of Internal Medicine shows that air pollution accelerates cognitive decline in women.

And with a new federal report showing Southern Californians are at the highest risk of death due to air pollution, this study adds to the growing body of grim evidence showing air pollution and healthy bodies don’t mix.

“We keep learning about more adverse effects (from pollution) than we thought possible,” said Jean Ospital, health effects officer with the South Coast Air Quality Management District, who was not involved with the current research.

 

“I’m not sure I find these results surprising,” he said, “but I’m also not sure...

Bus funds restored, but some schools lose more

February 14, 2012, 12:05 AM | Joanna Lin, California Watch

Bus Stop to Nowhere–Southern Humboldt Chapter/FacebookProtesters from the Southern Humboldt Unified School District fight transportation cuts at the state Capitol in January.

California schools will no longer lose $248 million in transportation funding under legislation Gov. Jerry Brown signed Friday – a move applauded by many education officials and school districts that had decried the loss as a disproportionate burden on rural schools. 

But for some, the move is bittersweet at best: Hundreds of schools now stand to lose more money than they did before the law.

Instead of targeting school bus money, SB 81 allows school districts, county offices of education and charter schools to absorb the $248 million hit – a loss of about $42 per student – anywhere in their budgets. For districts that had little or no bus funding to begin with and for charter schools, which do not receive state transportation dollars, the shift means a bigger midyear budget cut...

Caltrain plan would fast-track electric rail

February 13, 2012, 3:47 PM | Michael Cabanatuan, San Francisco Chronicle

Lucius Kwok/FlickrCaltrain is hoping to garner funding to electrify its tracks.

SAN FRANCISCO – The overhaul of California’s high-speed rail project could bring the Bay Area $1 billion to electrify Caltrain and lay the path for bullet train service between San Francisco and San Jose sooner than anticipated.

The San Francisco Chronicle has learned that officials with Bay Area transportation agencies are in negotiations with each other, and with the rail authority, to craft an agreement that would fund installation of an advanced train-control system, electrify the rails on the Peninsula and eliminate some of the rail crossings – perhaps as soon as 2016, five to 10 years earlier than earlier estimates.

“There’s a lot of work that needs to happen, and a lot of moving parts, but this is the closest we’ve been to seeing some real, tangible benefit to Caltrain from the high-speed rail project,” said Seamus Murphy, a Caltrain spokesman...

Southern Californians at risk of death from air pollution, EPA says

February 13, 2012, 12:05 AM | Bernice Yeung, California Watch

jpeepz/Flickr

Southern Californians are among those at highest risk of death due to air pollution, according to recent U.S. Environmental Protection Agency research published in the journal Risk Analysis.

The study, published last month, was conducted to “provide insight to the size and location of public health risks associated with recent levels of fine particles and ozone, allowing decision-makers to better target air quality policies,” the federal agency said in a statement responding to California Watch inquiries.

“While overall levels of fine particles and ozone have declined significantly in the past two decades, these two pollutants still pose a burden to public health,” the EPA statement said.

The study examined air pollution exposure based on 2005 air quality levels and projected there could be between 130,000 and 360,000 premature deaths among adults in coming years. The 2005 data was the best available for analyzing fine particulates and ozone, the EPA said. Among vulnerable populations like children, the EPA also estimates that fine particulate matter and ozone results in millions of cases of respiratory symptoms, asthma and school absences, as well as hundreds of thousands of cases of acute bronchitis and emergency room visits...

Californians fund super PAC that hounds GOP

February 13, 2012, 12:05 AM | Will Evans, California Watch

Brian Snyder/Reuters

Everywhere Republican presidential candidate Mitt Romney goes, he is followed by "trackers" with video cameras, hoping to catch him making an embarrassing gaffe. 

The effort, run by a super political action committee, is funded in part by wealthy Californians. American Bridge 21st Century pulled in more than $1 million from California donors last year, more than from any other state, according to campaign filings.

American Bridge is a liberal research organization in hot pursuit of what is now known as a "macaca" moment. In 2006, then-Sen. George Allen, R-Va., used the term to refer to an Indian American volunteer tracker for Allen's opponent, contributing to the failure of his re-election campaign.

American Bridge's team of about 16 video trackers follows Romney and his Republican rivals to all their events and will become increasingly active in Senate and House races this year, said spokesman Chris Harris. About 25 researchers comb public statements, business records and campaign contributions, and a communications team works to get the message out "in the political bloodstream," Harris said...

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