http://ocregister.com/ocregister/new...le_1186416.php

Plan to cover illegal immigrant kids withdrawn
Proposal to provide health coverage for all children, whether they live here legally or not, was a sticking point on state budget negotiations.

By BRIAN JOSEPH
The Orange County Register

The issue: The state budget and health care for illegal immigrant children

Last week: The Legislature failed to approve a budget by its June 15 deadline in part because of disagreement over two proposals that would provide health care for children who live in the U.S. illegally.

One proposal by Democrats called for expanding eligibility to the state's "Healthy Families" program, which provides health care to the state's poorest children, and dropping a provision limiting coverage to legal residents.


The governor
Another proposal by Gov. Arnold Schwarzenegger called for a one-time infusion of $23 million to 18 counties with health care programs for children not eligible for Medi-Cal or Healthy Families, including illegal immigrants. Orange County does not have one of those programs.

What's new: Senate President Pro Tem Don Perata, D-Oakland, said Monday that Democrats have withdrawn their proposal.
Perata
"We did not want the budget to get hung up on that particular point," Perata said, adding Democrats plan to propose Healthy Families changes in another bill.

Republicans, however, remain opposed to the governor's proposal, leaving them at odds with a powerful member of their own party. But they say the internal disagreement is not holding up the process.


Ackerman
Sen. Dick Ackerman, R-Irvine, said there are four to six issues that need to be worked out between Democrats and Republicans, but declined to say what they were.