In handing Gov. Arnold Schwarzenegger his biggest legislative setback, members of a Senate panel expressed concerns Monday that his plan to cover most Californians without health insurance was inadequately funded and would worsen the state budget crisis.
But the legislation negotiated by the Republican governor and Assembly Speaker Fabian Núñez, D-Los Angeles, was unable to surmount several political hurdles beyond the annual tab, now estimated at $14.9 billion. A proposed tobacco tax drew high-powered opposition. The fact that raising taxes takes a two-thirds vote in the Legislature made finding financing a complicated exercise. Republicans never supported the measure. Democrats weren't on the same page.
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