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"It's affecting our ability to function," said Ravenswood CEO Luisa Buada,RN, MPH. "We've delayed the anticipated start of critically needed communitymental health services and have slowed our hiring process for vacancies. Ifthis impasse continues into mid-September we will have to consider limitingaccess to care."
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Lucile Packard Children's Hospital recently approved a $175,000 short-termloan to the clinic to help avoid payroll shortfalls and keep the clinicafloat.
"The state is putting the lives of the most vulnerable at risk with itsfailure to pass a budget," said Packard Children's CEO Christopher Dawes. "Ourpartnership with Ravenswood drove us to step in to help, but many othercommunity centers don't have such support. The Governor and the legislatureneed to approve a budget promptly so that organizations like Ravenswood andthe communities they serve are not harmed."
California is one of only three states in the country that require atwo-thirds majority to pass a budget. Although the state's fiscal year beganon July 1, lawmakers have been unable to agree on the 2007-2008 spending plan.
"It's frustrating," said State Senator Joe Simitian (D-Palo Alto). "We'rejust one vote shy of a budget. I'm not sure that all of my colleaguesunderstand the impact that this impasse is having on folks of modest means.I'm just glad that Lucile Packard Children's Hospital has stepped up so thatcommunity needs will continue to be met."
"Lucile Packard Children's Hospital has done a truly noble act in comingto the aid of the most vulnerable in their time of need," agreed StateAssembly Member Ira Ruskin (D-Redwood City). "The community is grateful forthe Hospital's generosity. It is unconscionable that California's two-thirdsvote requirement for passing a budget has allowed a small group in the Senateto hold the budget hostage -- even after Assembly Democrats and Republicans,the Governor, and Senate Democrats have agreed on a fiscally responsiblebi-partisan spending plan for the state."
Without an agreement, hospitals, health centers, schools and otherinstitutions that depend on state payments for all or part of their operatingexpenses are left without funds. Some have turned to conventional loans tocover shortfalls, but they carry an interest burden that will not bereimbursed even after the budget has passed.
"The clinics are fulfilling their obligation to the community, but thestate is not," said Sherri Sager, Packard Children's government relationsofficer. "Although our local legislators have been supportive, Ravenswood andmany other community health clinics are suffering because of the inability ofthe legislature as a whole to come to an agreement on this issue. Many ofthese institutions operate so close to the margin that any delay inreimbursement can and often does produce real hardships."
Packard Children's partnership with Ravenswood Family Health Center islong standing. When East Palo Alto's Drew Health Center closed its doors in1997, Packard Children's, the San Mateo County Health Services Agency, ElConcilio of San Mateo, the City of East Palo Alto and the Peninsula CommunityFoundation worked together to establish the new community health center. Inaddition to funding support, the hospital provides Ravenswood withpediatricians, obstetricians, gynecologists, social workers and programs. In2006, the hospital also donated one of its mobile health units to allowRavenswood t
