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San Francisco Chronicle
December 13, 2000

San Jose to cover uninsured kids
County-run health program to get $3.16 million over three years

Maria Alicia Gaura, Chronicle Staff Writer

In keeping with the sentiments of the holiday season, the city of San Jose has agreed to contribute to a health care plan for children that it decisively rejected just six months ago.

San Jose's mayor and City Council voted unanimously yesterday to contribute $3.16 million over the next three years to support the $14 million-a-year, county-run program that promises to provide health coverage to every uninsured child in Santa Clara County. Children's Health Initiative, approved last week by supervisors, is the first government-sponsored program in the nation to offer universal health care to an entire community's children.

"Things are looking good for Tiny Tim Cratchett this season," said Leona Butler, executive director of the Santa Clara Family Health Plan, the agency that will administer the health care program.

Backers of the health care plan originally asked San Jose to contribute $6 million over three years from the proceeds of its tobacco lawsuit settlement. The city expects to receive $10 million per year for the next 25 years from the settlement.

A majority of the San Jose council initially favored the plan, but opposition from Mayor Ron Gonzales resulted in a 6 to 5 rejection in June. Instead, the city encouraged the proposal's advocates to apply for the funds from a city committee.

City staff recommended a three-year contribution of $1.76 million, but the grants committee countered with the larger sum that was approved yesterday.

The Children's Health Initiative expects to provide health insurance for an estimated 67,000 children in Santa Clara County who lack coverage. About 37, 000 of those uninsured children live in San Jose.

So far, county officials have committed more than $6 million to the plan, using about $3 million in tobacco settlement funds, $2 million in tobacco tax funds and about $1 million from its Health Foundation, which also raises money for the county's medical system.

With only about $7.5 million in pocket, the county still needs to raise an additional $6.5 million to cover costs for next year. County officials hope to fill the gap with large donations from charitable foundations and plan to begin enrollments in January.

Past bickering over the city's lack of interest in the health care program seemed to vanish yesterday as members of labor, church groups and health care advocates gathered to thank San Jose officials for their participation.

Labor leader Amy Dean called yesterday's vote a "historic moment" comparable to the creation of Medicare.

"We have begun to solve a problem that Washington has yet to achieve," Dean said.

Gonzales called the Children's Health Initiative an "innovative collaboration with the county and the community to help our most vulnerable residents, children who lack health insurance."

Still, he said, he's no Ebenezer Scrooge. "My position on this issue was always misunderstood," Gonzales said.

E-mail Maria Alicia Gaura at mgaura@sfchronicle.com.
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