If you take away one major theme from this week, it's costs.
First, California came closer to a budget agreement that would close a $26 billion budget gap caused by over-spending. Second, Obama stumped to keep the momentum going for a health care plan with a $1 trillion-plus price tag. And third, the Senate voted to stop funding the F-22 bomber plane, saving $1.75 billion.
What are we willing to pay for?
The question of what services we want and what we are willing to pay for comes into play in both the California budget situation and the national health care talks.
For example, California’s budget mess is being solved largely by billions of dollars in cuts to social services and education spending, and the difficult task of finding ways to pay for health care reform is pushing back Obama’s August deadline for new legislation to the end of the year.
The California way
In many ways California has held itself up on a pedestal as a leader in social reform and services, already moving toward universal health care. But its unwillingness to raise taxes to cover these services, combined with a complicated constitution that hinders the state’s ability to legislate (another topic for another time), means it is unable to pay the costs of providing the very services it spotlights.
The national health care issue could present a similar situation. Polls show that about 60% to 85% of Americans want to see the system revamped. But are they willing to pay for it? As the House and Senate debate different versions, it’s truly that question that will ultimately decide the fate of health care reform.
Thus far different polls show different reactions to this of course—a NYT poll shows over 50% are willing to penalize companies that don’t offer health insurance and to charge the wealthy a surtax; a Fox poll shows 60% think the reforms would cost them more money. Meanwhile, support for Obama’s handling of the health effort has fallen to 49%, and more Americans than before are siding with Republicans on health care plans. (Links to three polls and a neat piece on what polls really tell us: One, Two, Three, Deciphering polls).
Nonetheless, one thing we’ve learned in California, you can’t have the services if you can’t or aren’t willing to pay for them. It sounds simple, but it's something we should all think about.
What we’re talking about
We’re thinking that abortion is going to be a hot-button discussion point to watch for in the upcoming congressional debates on health care reform. The question is, if there’s a federally provided health insurance option, will it cover abortions? Two studies show many private insurance plans do. But the question of if federal dollars would be directed to abortions is already a sticking point in some reform discussions and the subject of a good amount of coverage. It's certain to get more ink in the coming months.
By chance a bi-partisan abortion bill was introduced this week in the House that is aimed at reducing abortions through things like better access to contraception and adoption. This came on the heels of a CDC report showing teen pregnancy on the rise.
What we’ll be following next week
Sarah Palin’s last day
Gov. Palin leaves her post in Alaska on Sunday, a year and half early, giving her plenty of time to work on that book that brought millions in a signing fee.
Sonia Sotomayor confirmation vote
After a one-week delay, the Senate is expected to confirm Sotomayor to the Supreme Court on Tuesday.
Aung San Suu Kyi trial comes to an end
The prosecution will rest its case against Burmese pro-democracy leader Aung San Suu Kyi who has been on trial after a man swam to her house, breaking the terms of her house arrest. She faces five years in jail if found guilty.
House health care
Democrats say the House will vote on their bill at some point during the week.
Cash for clunkers
We'll be curious how many people will turn in their old cars for a rebate on a more fuel-efficient car. The government has set aside $1 billion to fund this program and you can get up to $4,500. Read about the program here. Love this!


