Failure of Proposition 93 Shakes up Legislative Leadership
Proposition 93, which would have allowed state lawmakers facing term limits to extend their time in the Legislature, was rejected in California with 54 percent of the electorate voting against the measure.  There was an immediate shakeup on Thursday in the Senate when Senate Democrats selected Sacramento Sen. Darrell Steinberg to succeed Don Perata as senate president pro tem.  Perata released a statement indicating that the vote will be taken on Aug. 21, with Steinberg taking the reins in December.  After three terms in the Assembly, Steinberg was elected to the Senate in 2006.  There he chaired the budget committee.  As president pro tem, he will set the Senate's agenda, manage its floor sessions and make committee appointments.  Facing a budget deficit of at least $14.5 billion, Steinberg immediately addressed the issue of taxes. "We can't just look at the spending side,” he said.  “Whether that means [eliminating] tax loopholes, taxes, fees, hopefully we can pursue reform that gives California a more stable source of revenue."

On the Assembly side, Democrats held a caucus meeting and decided that Assembly Speaker Fabian Nuñez will remain as speaker through the end of the year’s legislative session and that the vote for his replacement will happen on March 11.  Unlike the Senate however, it is less clear who will succeed Nuñez as speaker as there are several legislators who are jockeying for the position. Candidates include Karen Bass, Kevin De Leon and Mike Feuer of Los Angeles; Charles Calderon of Montebello; Hector De La Torre of South Gate; Edward Hernandez of West Covina; Anthony Portantino of La Cañada Flintridge; and Alberto Torrico of Newark.

Board of Pharmacy Expected to take Vote on E-Pedigree Issue March 25
The California State Board of Pharmacy will hold a one-day board meeting on March 25 in San Diego to continue discussions on the state’s electronic pedigree law.  The board invites comment from those supporting a Jan. 1, 2009 compliance date as well as those who assert that additional time is needed.  The board has indicated that it may or may not vote on this issue during the meeting however, there is indication from industry sources that a vote will be taken.

Healthcare Reform Legislation Fails: What Next?
Just last month, opinion polls showed 60 percent support for the basic components of Gov. Schwarzenegger’s plan to reshape the state’s health insurance market in order to provide near-universal coverage.  When the plan melted down, with the Senate Health Committee voting against it seven to one, lawmakers pointed to its high cost.  How could the state afford a $14 billion health program when it already faces a $14.5 billion budget deficit?  Without overarching healthcare reform legislation, it is likely that 2008 will see a number of individual bills that address various aspects of health insurance, coverage and medical technology.  The enormous budget deficit will place particular pressure on Medi-Cal, including the program’s payments for prescription drugs, medical devices and diagnostic products.  Meanwhile, several influential groups (e.g. the California Nurses Association) continue to push for a single-payer system in the state; the state has a long history of failed single-payer legislation and ballot measures, but proponents will probably renew their efforts.  And, of course, all state legislative activity will occur in the shadow of a presidential election in which the Democratic and Republican candidates present sharply different approaches to expanding healthcare coverage and containing costs.