OBITUARY: Mildred ‘Diane’ Cox, 1947-2023
LoCO Staff / Thursday, May 4, 2023 @ 6:56 a.m. / Obits
Diane
Cox passed away on March 13, 2023 in Eureka, with her loving husband,
Ed Cox II, and supportive family at her side.
To Diane, family was the most important thing in her life. She was born on June 8, 1947, to Mildred Olivia Dahl and Lawrence Murray Weeks. She always felt fortunate that she was able to spend special times with her Grampie and Grammie Dahl and enjoyed sharing funny stories about them with her friends.
Diane was a loving wife, mother, grandmother and great-grandmother who always made time for her family. Becoming a grandma — or “Bamma,” as most of her grandchildren called her — was what Diane looked forward to, and she always found time to babysit for her grandchildren and, as they grew older, many hours were spent visiting and traveling with them.
Diane attended Alice Birney Elementary School, Jacobs Junior High School, and graduated from Eureka High School in the Class of 1965. In her sophomore year, she met the “Love of her Life,” Ed Cox II, and they remained sweethearts for 58 years.
Diane especially loved working with young children and for several years she provided daycare for many youngsters. In 1985, while her youngest children were in attendance at Freshwater School, she was invited to be a volunteer helper at the school. She quickly became known as Freshwater’s “Super Helper!” To the kindergartners, first graders, and their teachers, she was called their “Superhero!” At that time, you might walk into a kindergarten or first-grade classroom and see a child curled up in Diane’s arms, sound asleep, while she was helping a group of four other children with reading, writing or math. The students loved to tell her stories because they knew she would listen very intently to them and throw up her hands in laughter or share priceless words of advice.
Many generations of students spent their early years with Diane and loved her so much that they would return to Freshwater to be able to visit with her. She knew them all by name and kept in contact with them following her retirement. Many were the times that former Freshwater students would go by her house to let her know what they were presently doing or ask for her wise words of wisdom, and she would always take time to sit down with them; listen, discuss, and help them solve problems. She was another “Mom” to many of them and they will always remember her for her kindness, love, and humorous spirit which was shared with everyone. The Staff and Students of Freshwater School adored and respected their “Super Helper” and will miss all the lessons learned from her, as well as the many laughs they had together, her beautiful smile, and her very warm and loving hugs.
Diane’s grandchildren, and any other children that visited her at the Freese Avenue house, will remember right where her candy drawer could be found, filled with full sized candy bars all year round. Halloween brought great numbers to her house because everyone knew that she would be giving out the big candy bars. At Grandma’s house, you always snuggled and received hugs; could eat cake for breakfast; used your best manners; watched her favorite TV shows with her such as Oprah, Ellen, Rachael Ray and soap operas; and learned what “Uff da” meant.
One thing Diane did every year, until his death, was to take her lifelong high school friend, “Special Dave,” for a hamburger and milkshake at the Fresh Freeze on his birthday. She was truly Dave’s best friend and she looked forward to making him smile when she drove up to get him and he would be standing outside waiting for her. The talking began and didn’t end until she dropped him off and he would ask if she would be there again next year. She always said “yes,” and followed through on that promise.
Diane was the beloved wife of Ed Cox II and daughter-in-law of Charlotte and Edward L. Cox. She is survived by her children: Eddie Cox, Randy Cox (Melinda), Zach Cox, Nick Cox and Joe Cox and was preceded in death by her beloved son, Danial Cox.
She was also preceded in death by her brothers, Doug and Danny, and her sister, Donna.
Diane was adored by her grandchildren: Amber Cox, Emily Christman, Ashley Cox, Amber Cox, Danny Cox, Kylie Cox, Alex Cox, Nathan Carroll, Chloe Cox, Vivianna Cox, Elias Cox, and her great-grandchildren, Camryn Jacobson, Abel Tilly, and Brinley Lynn Tilly.
She is survived by her brothers, Darrell and Forest, brother-in-law, Dave Cox and his wife, Marilyn, and their family, and sister-in-law, Lana Griffith, and her family.
The family extends its appreciation to St. Joseph Hospital and nurses, Jennifer Beckstead-Chavez and Felicia Goodman, as well as many other nurses who were so kind and helpful.
A family burial service took place at Ocean View Cemetery and a Celebration of Life will be held at the Eureka Elk’s Lodge, 445 Herrick Road, Eureka, on Saturday, June 3, from 2-5 p.m. Please be prepared to carpool as parking will be limited.
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The obituary above was submitted on behalf of Diane Cox’s loved ones. The Lost Coast Outpost runs obituaries of Humboldt County residents at no charge. See guidelines here. Email news@lostcoastoutpost.com.
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Governor’s Office: In Kern County, Governor Newsom continues ‘California Jobs First’ tour at low-emissions cement plant
County of Humboldt Meetings: 11/21/2024 MAJJCC Agenda
County of Humboldt Meetings: November 2024 HCCCP Executive Committee Agenda
OBITUARY: John Rex White, 1946-2023
LoCO Staff / Thursday, May 4, 2023 @ 6:56 a.m. / Obits
John
Rex White
May
4, 1946 – March 21, 2023
John Rex White was born on May 4, 1946, in a Washington D.C. Naval hospital to parents Ruth Barnett White and Howard Hall White and brother Kyle White. Howard was in the Navy and the family moved a lot before they put down roots during Rex’s elementary school years in Emmaus, Pennsylvania, where they had a farmhouse and were surrounded by Pennsylvania Dutch culture.
Howard was a leader in the meat packing industry and helped set USDA grading standards, while Ruth was an active community leader advocating for women’s rights from the 1920s to her passing. Ruth loved her family and enjoyed giving to her community through service and raising collies. Rex participated in 4H and Kyle played football. They enjoyed their years and made many lifelong friends in Emmaus.
For high school Rex attended Greenbriar Military Academy in Greenbriar, West Virginia and graduated in 1964. He then briefly attended Hillsdale College and transferred to California College of Arts and Crafts (CCAC) in Oakland. While at CCAC, he met Wendy Marcus. They shared talent and interest in creative art styles. In 1968, Rex and Wendy married, and both graduated with bachelor degrees in fine arts.
Following college, Rex and Wendy drove a Saab and camped through Mexico and Central America, including Guatemala and Costa Rica. Upon their return to California, with their friend Frank Carson, they traveled to the remote fishing village of Shelter Cove in Humboldt County and bought land.
In 1972 their son Praj Olam Ananda White was born at the Garberville Hospital with help from Dr. Jerold Phelps. That same year they began construction of their home, a geodesic dome inspired by Buckminster Fuller, that became known as the “Dome”. Several years later, the Dome was a real functioning home and work of art.
Rex’s brother, Kyle, died just after Praj was born. Kyle was a natural leader, worked as an attorney for the Black Panthers, and likely would have entered politics to continue his activism but cancer took him early at age 31. Kyle has been greatly missed. Praj attended the funeral as a baby and carries many of Kyle’s charming qualities.
In 1973, the Big Finley Creek Fire burned from Whitethorn all the way to the ocean. Only a rope hanging in the Dome burned, and the undamaged Dome was spared. In the post-burn landscape, they stayed in a nearby cabin where their daughter, Adona Celeste White, was born in 1975 with attendance from midwife Kate Lanigan; Dr. Bill Hunter arrived soon after. Adona has become a community leader carrying forward her mothers and grandmothers’ charisma. Rex and Wendy continued to build the Dome and pioneered a homestead.
Rex fished commercially to support the lifestyle he and Wendy created. Rex was part of the mosquito fleet that fished primarily out of Shelter Cove, Fort Bragg, and Eureka. Fishing for salmon, Albacore, and rock fish on several boats, including the Hooker.
Rex and Wendy separated in 1982, with the kids attending Jacoby Creek School in Arcata and spending summers and weekends with Rex at the Dome. Rex played music with friends and neighbors weekly and was lead singer and guitarist with a local band called the Repercussions.
In 1984, Rex met Nella Coker and in 1986 they were married and lived together in Benbow. Nella is a wonderful stepmother to the kids, who both started their working years at the Benbow Inn dining room at age 14. In 1995 Rex and Nella founded the first internet service in Southern Humboldt, ASIS Internet, where they served the community for many years. In 2003, their Benbow house burned down, and Rex’s father Howard passed away two weeks later. With the help of Praj and son-in-law David Walsh, Rex and Nella rebuild their home. In 2005, Rex and Nella separated.
Rex spent the next few years caring for his mother Ruth in Eureka and West Virginia. In 2012, Rex returned to Humboldt County and lived in McKinleyville, where he enjoyed his grandchildren, church, playing music, and painting, while struggling with declining health.
In 2022, Rex moved to a cottage in Redway and continued to play music with the Repercussions and to paint, finding new techniques and forms of creative expression. He enjoyed the warm sun and warm fires.
Rex passed away on March 21, 2023, on the spring equinox and the new moon, at his daughter’s home. Wendy passed away just 36 hours later.
Throughout his life, Rex was active in eclectic spiritual practices including, Hippy, Vedanta, Tantric Yoga, Qi Gong, redwoods Monastery and the Episcopal Church. Rex was an active member of his community and offered his services readily. Rex was a longtime supporter of community non-profits including KMUD and the Mateel Community Center. Rex served as a videographer and video archivist for decades including local theater and music events, including the long running events Jazz on the Lake and Reggae on the River.
Rex was always creating and innovating. Some of his entrepreneurial pursuits included Video Now, the Repercussions, Almondio, Pacific Standard Lumber, Access Solutions Information Services (ASIS), Natural Video in Production (NVIP), Rextracts Magic, and Rex White Gallery.
Rex was a snappy dresser and was happy to see people he knew and happy to meet new people. He made every effort to participate in the party. He was energetic and charming. Long and lanky, he was full of humor and showmanship. Rex shared himself generously and exuberantly with his family, friends, and community. Rex was an activist for the Earth and liberty. Rex was a poet, a musician, and an artist. Rex was ever exploring and philosophizing. He loved deeply and wholly.
Rex will be missed. Rex is survived by his son Praj White, daughter in-law Alisa White, and his grandchildren Logan Kyle White and Isabella Rose White, his daughter Adona White, son in-law David Walsh and granddaughter Vida Sacha Rayne Walsh, and former wife Nella White, as well as a few first cousins.
There will be a service to celebrate Rex’s Life at Christ Episcopal Church in Eureka on Saturday May 6, 2023, at 11 a.m.
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The obituary above was submitted on behalf of Rex White’s loved ones. The Lost Coast Outpost runs obituaries of Humboldt County residents at no charge. See guidelines here. Email news@lostcoastoutpost.com.
OBITUARY: Mark Thomas Thompson, 1959-2023
LoCO Staff / Thursday, May 4, 2023 @ 6:56 a.m. / Obits
Mark Thomas Thompson
Aug. 14, 1959 - April 3, 2023
Mark Thomas Thompson was born August 14, 1959 in Fond Du Lac, Wisconsin and passed away on April 3, 2023 at his home, surrounded by his family.
Mark was a skilled mechanic who spent 40 years in the industry. He made many lifelong friends in his field, including his very dear friend Morgan (Abby). He never hesitated to help someone in need or share his vast mechanical knowledge. He enjoyed good music and good food and spending time with family and friends. He was a collector who has various collections, most notably his model cars, coins, and sports memorabilia. He was a die-hard Packers fan and often told stories of attending games at Lambeau Field with is father as a child. You could find him on a Sunday morning with a cup of coffee in his garden admiring the flowers. He was an animal lover who spoiled his dogs as he did his children. He was a spiritual man who valued his relationship with the Lord.
Mark was very loved and will be deeply missed by his family. We do not have the words to describe how much he truly meant to us all. He always had a big smile on his face, a twinkle in his bright blue eyes, and a booming laugh that would make anyone smile. Most of all, we were so lucky to be loved by him.
Mark is preceded in death by his father, Raymond Thompson; mother, Anna Eastridge; stepfather, Max Eastridge; and uncle, Fritz Thomas. Mark is survived by his life partner, Laura Stephens, with whom he spent 29 loving years; his sisters Kris Bosworth (Rob) and Karen Thompson; niece Halle Bosworth; beloved cousin Thomas Honeycutt (Susan); daughters Gina Thompson, Marlena Thompson, Maria Hadenfeldt, Tiana Davis (Ben); sons Tyler Davis (Kim), Raymond Thompson, James Hughes (Ong), Scott Hughes; his many other honorary children and grandchildren; his grandchildren, RayJ, Jaydn, Helen, Nicholas, Destiny, Truitt, Bryce, Rebekah(Cody), Bailey(Cayden), Bentley, Charlie, Pheonix, Lilly, Carson, Colin, Cadence; and great-granddaughter, Hadley. He was a proud Papa who loved spending time with all of his grandchildren.
The family would like to thank the medical team who cared for Mark, especially Dr. Ruben Brinckhaus and Fortuna Family Medical Center and the Oncology staff at St Joseph’s hospital.
A celebration of Mark’s life will be held at the Rio Dell Fire Hall on Saturday, June 10, at 2 p.m. All are welcome, please bring a memory and a smile to share with the family.
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The obituary above was submitted on behalf of Mark Thompson’s loved ones. The Lost Coast Outpost runs obituaries of Humboldt County residents at no charge. See guidelines here. Email news@lostcoastoutpost.com.
HUMBOLDT TODAY with John Kennedy O’Connor | May 3, 2023
LoCO Staff / Wednesday, May 3, 2023 @ 3:53 p.m. / Humboldt Today
HUMBOLDT TODAY: A local coach is out of the job following controversy; crabbers face new restrictions; record snow levels are impeding nature lover’s adventuring; plus, another cruise ship is comin’ to Eureka this weekend! Those stories and more in today’s online newscast with John Kennedy O’Connor.
FURTHER READING:
HUMBOLDT TODAY can be viewed on LoCO’s homepage each night starting at 6 p.m.
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As Humboldt County’s Roads ‘Rapidly Deteriorate,’ Board of Supervisors Approve $336K to Research Reliable Funding Opportunities — Including a Sales Tax — for Future Repairs
Isabella Vanderheiden / Wednesday, May 3, 2023 @ 1:10 p.m. / Local Government
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Humboldt County’s roads are in bad shape, and without additional funding for repairs they’re only going to get worse.
Every four years, the county is tasked with updating its Pavement Management Program (PMP) which, essentially, documents the condition of the county’s roads and helps guide the decision-making process for choosing the most cost-effective maintenance strategies. To develop the PMP, roads are broken into segments and rated through the Pavement Condition Index (PCI) on a scale of zero to 100, with zero being the worst and 100 being the best. During the county’s last PMP review in 2017, the county’s overall road system ranked at 55 and was considered to be in “fair condition.”
“Now we are down to 49, which is in the ‘poor condition’ [range],” Public Works Director Tom Mattson told the Board of Supervisors during Tuesday’s meeting. “We’re off the cliff. We’re going to rapidly deteriorate from here if we don’t get additional funding to stop this from happening.”
Once a road is newly paved, it’s pretty easy to keep it in the “very good” to “good” range with minimal maintenance costs such as slurry and chip seals, but as they deteriorate and dip into the “fair” range, the cost of repairs grows exponentially.
Mattson reiterated that the PCI is an average of the county’s entire road system. “So yes, we do have roads like this,” he said, gesturing to the image to the right. “We also have some very good roads, but it’s the average overall that is bringing our whole system down. … But over 50 percent of our roads are poor or failed condition.”
It’s going to cost over half a billion dollars over the next 10 years to get the county’s road system up to an index of 70, which would indicate an overall good system, Mattson said. To maintain the existing PCI of 49, the county would still need an additional $343.8 million in the same time period. If there are no additional funds allocated for road maintenance, the county’s overall PCI is projected to “fail” and drop to 25.
Where will that funding come from? Mattson outlined several options for the board, including a general sales tax, a dedicated sales tax or a parcel tax which would all have to go to the ballot for voter approval. The funding could also come from the county’s General Fund, but Mattson said that’s “not something I would want to rely on,” adding that the county roads need a “dedicated funding source that could be relied on and planned for.”
“The General Fund [has] ups and downs,” he continued. “That’s very difficult, especially with years like this where everybody’s having to tighten their belts. It’s very difficult to ask for roads for General Fund when you’re cutting other core services.”
Measure Z has proved to be an adequate funding source in years past, but this year “it simply isn’t enough,” Mattson said. Just last week, the Board of Supervisors learned that Measure Z, the county’s half-cent sales tax for maintenance and enhancement of public safety and essential services, is expected to bring in $1.8 million less than staff’s estimate for the current fiscal year.
“This year there was very little funding available for anybody to compete,” Mattson said. “[Measure Z] is really not for long-term road maintenance, [and] our problem is long-term road maintenance.”
The last option Mattson suggested was to reduce the county’s maintained road system mileage. “But that’s not an easy thing to do,” he said. “The county looked into it years ago and got a significant amount of blowback from the public. While we would lose $417 per mile that is very, very little based on what we need to maintain those roads.”
Whichever option the board chooses, Mattson recommended the formation of an ad hoc committee to oversee the process and make recommendations for future funding priorities.
Turning to the board for discussion, Fifth District Supervisor and Board Chair Steve Madrone said he had recently come across some data that found California drivers spend approximately $900 per year on vehicle maintenance related to road damage.
“For instance, you hit the pothole and there goes your alignment,” he said. “As your alignment goes out and the wear and tear on your tires goes down. Suddenly your brand new four tires that are nicely matched become two tires and then one tire that’s wearing out really fast. … If you think about a half-cent sales tax and [the cost of repairs], it is clearly far less to spend on sales tax as a person than to pay out this money on your car repairs.”
Second District Supervisor Michelle Bushnell asked what reducing the county’s maintained road system would look like and how Public Works would navigate the selection process.
“That looks at how many people are using the road, what kind of access it serves … if it ends or if it goes into a last property,” Mattson explained. “Once a road goes out of the system, people can do things like starting putting up gates and other things. It would involve developing a criteria that we would be able to go through and apply to [each] road. It would not be some kind of random ‘I don’t like you, I’m taking your road out of the system.’ … It would be us basically scientifically coming up with a justification and seeing if the public could support it.”
First District Supervisor Rex Bohn recalled a time “in the ‘90s” when the county decided to abandon several roads in the First District “and the proverbial manure spreader hit the fan,” he said. “It’s not going to work.”
“I hate to say it, but I think the option of a sales tax is what we’re going to have to look at,” Bohn continued. “[If] you make a commitment with five people on board that this money will be spent on roads, it’s going to be hard – even if we just do a general sales tax – that’s gonna be pretty hard to override.”
Fourth District Supervisor Natalie Arroyo noted that during her time on the Eureka City Council, the City of Eureka focused “on maintaining arterials, as roads with higher volumes … [are] the most used and critical.” (In this case, an “arterial road” refers to a high-traffic road, such as Redwood Drive that connects Redway and Garberville.)
“But what I think I observe with [the county] is that a lot of times we have catastrophic failures of roads and so a lot of funding has to be diverted to those, versus maintaining those arterials or collectors that are used by more traffic volumes,” she said. “I’m sure we aim to do it all, but can you speak to kind of the prioritization of the funding and is what I’m saying accurate from your perspective?”
Mattson agreed that arterial roads “get most of our attention,” but said there are still a lot of “backcountry roads,” such as Stagecoach Road up near Trinidad, that were built with no rules and regulations that need constant repairs during and after the rainy season.
Arroyo also asked about federal funding streams. Mattson said the county “compete[s] as often as we can for federal funds” for specific projects, but the county’s primary need “is basic road maintenance.”
“It’s not big new projects,” he said. “There is no program at the federal level that gives money to counties and cities to maintain roads. They’re all for capital projects.”
Third District Supervisor Mike Wilson emphasized the importance of public transportation and creating “living and community spaces where maybe cars aren’t necessarily required” to reduce greenhouse gas emissions and alleviate the burden on local roadways.
“I think it’s important as we move forward to always be thinking about this in our planning,” he said. “I know we’ve received some emails from folks who are concerned about roads discussions [that don’t include] discussions around public transit and alternative modes of transportation other than cars. … Because we’re essentially talking about taxing people in urban and suburban places in order to support, you know, less efficient road infrastructure. … We have to make the case if they’re going to be taxed, is it fair?”
Toward the end of the discussion, County Administrative Officer Elishia Hayes reiterated staff’s recommendation to establish a roads ad hoc committee and approve a one-time expenditure of $336,250 to contract with a public policy firm to research the best of the aforementioned money-generating methods. She reminded the board that it did not have to make a decision on which method to pursue just yet.
After a bit of additional discussion, Bohn made a motion to approve staff’s recommendation and “include public transportation with that.” Bohn added that he would like to appoint Bushnell and Madrone to the ad hoc committee. Wilson offered a second and asked that “all of the things discussed here” inform future decisions.
The motion passed 5-0.
CRUISIN’ EUREKA: Another Cruise Ship Will Brave Humboldt Bay This Weekend
LoCO Staff / Wednesday, May 3, 2023 @ 10:13 a.m. / Tourism
City of Eureka release:
Eureka will welcome the return of the Scenic Eclipse cruise ship on Sunday, May 7th, at 1:00 p.m., departing at 8:00 p.m. The ship will be led into the harbor by a boat parade and a private welcome party at Schneider dock that includes live music.
During their visit, ship guests can enjoy Old Town or participate in excursions that the Humboldt Bay Harbor District is coordinating. The tours will include a hiking in Trinidad, Humboldt Botanical Garden, Ferndale, and the Redwood Skywalk.
Local citizens who want to view the ships can watch from the Del Norte Street pier, the Park and Ride at Herrick Avenue, and the Samoa boat ramp at the north jetty.
The Scenic Eclipse visited our harbor last September, and we are delighted they have chosen to return!
The State Approved Money to Lower the Cost of Covered California Insurance. Now Pressure Is Mounting to Make Sure It Happens
Kristen Hwang / Wednesday, May 3, 2023 @ 7:40 a.m. / Sacramento
The adage “get it in writing” applies to politics as much as anything else, and it would seem the California Legislature could learn a lesson or two.
Legislators and advocates have been pushing Gov. Gavin Newsom since last year to make good on a longtime promise to funnel money from a controversial tax penalty into the Covered California marketplace, making health insurance cheaper for nearly 1 million enrollees. The problem — or at least the argument Newsom has always made — is that state statute doesn’t require the penalty money to be used on health care. It goes directly into the general fund — where it has stayed for most of the past four years.
But legislators say that’s not what they intended when they voted on the measure in 2019. Senate leadership signaled its intent last week to ensure in writing that the money will “further lower the costs of health coverage for lower- and middle-income Californians” moving forward. The Senate budget proposal rejects Newsom’s plan to temporarily move $333.4 million in penalty money from an affordability reserve to the general fund, calling it a “rip-off” of Covered California funds.
“Our plan protects important advancements that California has made that has moved us towards a more equitable and sustainable economy,” Senate Budget Chairperson Nancy Skinner said during a press briefing last week.
In 2019, Newsom proposed and the Legislature passed a polarizing tax penalty on Californians without health insurance, known as the individual mandate, with verbal assurances that it would be used to lower health care costs for those who have insurance through Covered California, the state version of the Affordable Care Act marketplace. Though more than $1 billion has been collected in the past four years, the money has only been used once to lower costs for enrollees, about $355 million in 2020.
The Senate Democrats’ budget proposal, which relies on corporate tax hikes that Newsom swiftly rejected to avoid a variety of cuts, sets the stage for an intense period of negotiation between the Legislature and governor as they hash out a state spending plan in the face of diminishing tax revenue. The Senate’s counter proposal would mandate using the money to eliminate deductibles and copays for roughly 900,000 Covered California enrollees next year. It’s one of several health care funding battles heating up amid a bleak budget year, including a fight to infuse emergency cash into hospitals on the brink of closure.
Newsom is expected to disclose later this month an even more dismal financial picture for the state than the $22.5 billion deficit he projected in his January budget proposal.
“I’m trying to make sure that those dollars stay in this area to address affordability, and I’m not hearing from the administration that same commitment.”
— Assemblymember Joaquin Arambula, Democrat from Fresno
In a statement, Brandon Richards, a spokesperson for Newsom, said the governor will “continue to work with the California Legislature to develop the final budget package” in the coming months.
This is just one step in a long budget negotiation that will stretch to June. If the Senate’s counter proposal makes it into the state’s final budget come summer, leadership intends to end the diversion of penalty money permanently. Notably, Democratic leaders from the Assembly have not endorsed the Senate’s spending plan nor put forth their own proposal, but John Casey, communications director for Assembly Speaker Anthony Rendon, said both houses are interested in the issue.
“We’ll see what the May revision includes and the two houses will advance their priorities as best they can in negotiations afterward,” Casey said.
“A bitter pill”
In recent committee hearings, Assembly and Senate legislators have lambasted this particular proposal in Newsom’s budget.
“I’m trying to make sure that those dollars stay in this area to address affordability, and I’m not hearing from the administration that same commitment,” said Assemblymember Joaquin Arambula, a Fresno Democrat and chairperson of the Assembly budget subcommittee on health.
Sen. Caroline Menjivar, a newly elected Democrat from Van Nuys and chairperson of the Senate budget subcommittee on health, criticized the governor’s plan for saving money “on the backs of our low-income communities.”
On his first day in office, Newsom proposed reinstating a tax on people without health insurance to fund increased subsidies for people who have Covered California insurance. A previous federal version of the tax had been repealed by the Trump administration the year prior, which contributed to a 24% drop in enrollment in Covered California plans.
“The individual mandate was not intended to create funds for other government programs outside of health care from my perspective.”
— Assemblymember Jim Wood, Democrat from Santa Rosa
New taxes always trigger a legislative skirmish, but this one gave even Democratic lawmakers and powerful advocacy groups pause: Theoretically, the tax would encourage more people to get health insurance, lowering the overall cost for everyone in the marketplace, but the penalty would come out of the pockets of the state’s poorest residents — those who forego insurance because it’s too expensive.
The Legislature ultimately approved the tax in 2019 with the understanding that the projected $1.4 billion in revenue over three years would be used to lower insurance costs.
The majority of that money, however, has stayed in the state’s general fund. Newsom has previously argued that the federal government’s more generous COVID-19 subsidies, which extend through 2025, render additional state spending unnecessary, especially at a time when California faces a growing deficit.
But legislators in both the Senate and the Assembly say that’s not what they voted for.
“The individual mandate was not intended to create funds for other government programs outside of health care from my perspective,” Assemblymember Jim Wood said during a recent budget subcommittee meeting. “I don’t think I would have supported it if that was the way I thought it would end up.”
Wood, a Democrat from Santa Rosa who leads the Assembly Health Committee, called the diversion to the general fund “a bitter pill to swallow.”
During the hearing, Department of Finance analyst Matt Aguilera argued using the money to alleviate the deficit would not impact current services under Covered California.
“Everybody is concerned about affordability. There’s agreement on that. Just due to the economic situation this may not be a good time to start up new programs,” Aguilera said.
But advocates argue using the revenue from the individual mandate penalty wouldn’t be new spending. It would be fulfilling an existing commitment.
Costs keep rising
Last year, in tandem with a measure to ensure the penalty money no longer got diverted, the Covered California board approved a plan to eliminate deductibles for the state’s mid-tier coverage option, which is widely considered the most cost-effective insurance option. When Newsom vetoed the policy bill citing a “downturn in revenues,” the plan was abandoned.
“Last year this was a priority for everybody: the health plans, business groups, both the Assembly and Senate prioritized it in their budgets, health advocates, Covered California itself. Everybody lined up to support this,” said Rachel Linn Gish, communications director for Health Access California, a consumer advocacy lobbying group. “The only person we didn’t have was the governor.”
Instead, deductibles jumped from $3,700 for an individual and $7,400 for a family with a mid-tier plan to $4,750 and $9,500, respectively. Health Access is sponsoring another measure this year to ensure money appropriated for Covered California affordability measures is used for that purpose.
“One of the most direct and impactful ways we can make sure consumers get health care access right now is by lowering the cost of care,” Linn Gish said. “The 2025 (federal subsidy) sunset was the governor’s main sticking point…but to us, it’s 2023. Why can’t we help people now?”
Senate Democrats also rejected delays and cuts to investments in the state’s health care workforce, including a $49.8 million cut to training programs for public health workers. Michelle Gibbons, executive director of the County Health Executives Association of California, said the money was sorely needed after decades of public health budget cuts left the state scrambling to respond to the COVID-19 pandemic.
“We can’t even begin to grow the pipeline of microbiologists, lab directors, epidemiologists — very skilled positions — without these programs and investments,” Gibbons said.
It’s unclear, however, how feasible the Senate Democrats’ proposal is with the state facing an economic downturn. Most of the cuts avoided are funded through a $6 billion proposed corporate tax hike and $5 billion suspension of a major tax credit, which Newsom rejected within hours of the proposal’s release.
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