California Releases First Budget Without Deficit in Years

For the first time in several years, the Governor’s office has released a budget that is not in deficit, thanks to a mix of budget cuts, economic growth and the approval of Prop. 30, the voter-approved $5.6 billion revenue measure. There are modest spending increases in several areas, most notably in education and healthcare allocations. With the implementation of the Affordable Care Act (ACA) on the horizon, the budget includes $350 million for the expansion of Medi-Cal to individuals up to 138 percent of the federal poverty level. On the education side, Governor Brown allocates an additional $2.7 billion to K-12 education and outlines a policy to send more money to poorer districts. The University of California and California State University systems also see increases of $250 million each, while the California Community Colleges would receive $197 million more. BayBio supported Prop. 30 in 2012, and will continue to monitor the budget conversations in Sacramento to ensure that funding for higher education remains a priority.

Gov. Brown Delivers State of the State, Calls for Special Session on the Affordable Care Act
Governor Brown’s State of the State address last week touted California’s successes and commended both the legislature and the citizens in efforts to stabilize the budget, but was marked with caution for the future. The Governor acknowledged the quickening pace of job growth in the state, and discussed streamlining regulatory procedures and tweaking programs that have not generated success, such as the Jobs Hiring Credit and the Enterprise Zone Program. The Governor also touted California being the first state in the nation to pass laws to implement the Affordable Care Act (ACA), and proceeded to called for a special session designed to deal with timely implementation of the ACA.

BayBio to Travel to Washington, DC to Discuss Medical Devices on The Hill
Next week, BayBio will travel to Washington, DC for the annual AdvaMed fly-in on Capitol Hill. They will join representatives from 17 states and 19 life sciences associations in coordinated visits to local representatives in Congress to discuss the imprint of the medical technology industry on California, and the U.S. as a whole. Central to these conversations will be the challenges facing the medical device industry in the implementation of the Affordable Care Act, including the chilling effect that the recently imposed medical device excise tax (contained in the ACA) will have on research and development in California. Please contact Ritchard Engelhardt ( or Mallori Merandino ( with any medical device issues you would like raised during the fly-in.