Gov. To Seek Insurance For All Children

But several independent sources said Schwarzenegger had committed to the framework of the children's insurance portion. Administration officials have privately told people outside government that they intend to guarantee medical coverage for children of families earning up to 300% of the poverty level, or $60,000 a year for a family of four. Those families have 90% of the children without insurance. But the cutoff is not yet set in stone.

Schwarzenegger's proposal goes further than one put forward last month by Senate President Pro Tem Don Perata (D-Oakland). His plan excluded illegal immigrants. Assembly Speaker Fabian Nunez (D-Los Angeles) incorporated children of undocumented residents into his plan, which also was announced in December.

"A lot of us are really looking to [Schwarzenegger] for leadership," said Wendy Lazarus, founder of the Children's Partnership, a nonpartisan child advocacy group based in Santa Monica and Washington, D.C. "Assuming he is going to tell us that he is going to cover all kids, this is great news for California's kids."

About 90% of California's children already have insurance, either through their parents' coverage or through state Medi-Cal programs that help the impoverished. For years, advocates have been pressing lawmakers to finish the job, arguing that the electorate would be sympathetic to the plight of children.

"It's the low-hanging fruit of the healthcare reform debate," said Dr. Bob Ross, president of the California Endowment, a private foundation in Los Angeles that was created to push for expanded access to healthcare.

"Kids are relatively cheaper to cover" than adults, he said. "From a public health standpoint, it's smarter to cover all children regardless of immigration. You just don't want unimmunized kids surfing around in the population."

Such arguments have yet to win the day in Sacramento. Last year, Schwarzenegger backed a budget plan that would have helped fund local children's initiatives. Republican lawmakers blocked the proposal, because it would have included coverage for children of illegal immigrants.

"We believe Californians do not want to reward illegal behavior," said Assembly Republican leader Mike Villines of Clovis. "There are so many here [legally] who are hurting and trying to make ends meet, we've got to focus on them first."