THE WORKING POOR TAKE ANOTHER HIT

Here in Arizona, where the "tax burden, per $1,000 of personal income, is at its lowest level in over 30 years," the new budget will cut approximately 310,000 of the working poor from the state health insurance plan, AHCCCS. Here's the exact wording from the budget:

Solutions to Budget
Prop 204 Rollback (358,524.6)

When Arizona voters passed Proposition 204 in 2000, the question
on the ballot stated: ʺA ‘yes’ vote shall have the effect of ...
increasing healthcare coverage eligibility for Arizonaʹs working
poor at the federal poverty level ... using the tobacco litigation
settlement money.ʺ Since FY 2004, the tobacco litigation settlement
funds have been inadequate to fund the Proposition 204
expansion. In FY 2011 the General Fund is forecast to provide
$740 million to support the Proposition 204 expansion (excluding
the offset from federal stimulus funds).

Effective January 1, 2011, the Executive recommends elimination
of health coverage for childless adults who were added under
Prop. 204 and capping other populations (largely disabled and
parents) at a level adequate to be supported by the tobacco
settlement revenues, effective January 1, 2011. This action is
forecast to save the State ($382.5 million) in FY 2011, of which
($358.5 million) is in AHCCCS and ($24.0 million) is in the
Department of Health Services. The State will lose an estimated
($737.6 million) of federal match, and 310,500 Arizonans will lose
their AHCCCS health insurance. This is 4.3% of the population
forecast for Arizona in 2011.

UPDATE: This story is getting some legs. Atrios links to it and so does TIME's Swampland blog