Funding Public Health
California’s Corporate Loophole is putting public health at risk
California’s current commercial property tax system is starving local governments, preventing positive investments in our communities, and stretching our safety net to the breaking point.
California’s Corporate Loophole, passed 42 years ago, stripped local governments of vital funding for public health services. Despite few resources, counties support health care in their communities by funding County Hospitals, Community Clinics, and Emergency Medical Services.
Human Impact Partners, an organization that conducts health policy research, says that the loophole: “has decimated a longstanding funding source for programs and policies that keep our communities healthy. Many of the health disparities our state suffers from now can be traced back to [the corporate loophole].”
“Billions of dollars are withheld from funding local health clinics, trauma centers and other vital services our communities need and working families depend on to make ends meet”
— Dolores Huerta, Civil Rights Activist
Fast Facts
In 1964, California had 66 county hospitals. Today there are only 13.
California is ranked 4th in the most rural hospital closures since 2005.
Since 2005, 9 of California’s rural hospitals have shut down resulting in a loss of 336 beds, despite a growing rural population.
California ranks among the 10 worst states in emergency response times.
Between 2002 and 2009, there was a 10 percent reduction in California’s hospital beds.
When these hospitals close, thousands of employees also lose their jobs.
California needs real solutions
Closing the loophole will restore $12 billion a year to our local communities. This provides much needed funding for our health care systems, which safeguard our communities’ ability to fight public health crises. Local governments will have billions of dollars to spend on health clinics, trauma care, emergency rooms, and other necessary health services.
THE CORONAVIRUS PANDEMIC has made it strikingly obvious that we need a stronger public health infrastructure. Decades of drastic cuts to local and state public agencies were laid bare during this crisis. Health care inequity has also taken center stage in the conversation — the death rate percentage of Latinos, Pacific Islanders, and Black Californians is higher than the CA average. Closing the loophole would provide our local governments funds to invest in our public health system, so we are better prepared for future emergencies and can provide services to all impacted individuals.
Public health impact of closing the corporate loophole
With the influx of funding, California counties could afford to fund public health services. For example, Human Impact Partners reports the following:
Alameda County can cover the costs of 3,200 more people to receive health care at community clinics and connect 750 people with mental health or substance abuse support.
Los Angeles County can cover the costs for 48,000 more people to receive health care at community clinics.
San Francisco County can cover the costs for 12,000 more people to receive health care at community clinics, and 1,000 more undocumented residents to get affordable health care.
Santa Clara County can cover the costs of 8,500 more people to receive health care at community clinics.
California has made positive movement towards a better healthcare system for everyone. Recently, CA became the first state to provide access to health care to eligible people, regardless of immigration status. Now is the time to close the corporate loophole and make sure our public health system has the resources it need.
We need this now more than ever
In order for Californians to stay safe and healthy, local governments need immediate and significant resources. With increased funding, health providers can better inform and educate our communities, provide vaccines and testing needed to treat an outbreak, ensure enough clinics and hospital beds to treat those who are ill, and even offer paid time off to recover. By closing the corporate loophole, we can come together to show that we care about the health and safety of ourselves and our communities.