"It makes no fiscal sense whatsoever," said Kathy Kneer, president of Planned Parenthood Affiliates of California. "It undermines the whole cost-effectiveness of the program."
California officials fear that if they have to determine the immigration status of each participant in Family PACT, it will scare away many who are not in the country legally. The state offered to increase its estimate of illegal immigrants to 17.8% of total participants, but that was rejected, Rosenstein said.
Federal officials declined to discuss the issue with The Times.
In a Sept. 3 letter, Washington gave the Schwarzenegger administration a month to agree to the new terms or give up the federal money. It extended that deadline by two weeks after Schwarzenegger complained in a letter to U.S. Health and Human Services Secretary Mike Leavitt: "Frankly, I am disappointed by this abrupt action and the lack of personal consultation."
Still, starting today, California will begin forfeiting 5% of the federal money until it agrees to the new rules.
Schwarzenegger and legislative leaders have been lobbying House Speaker Nancy Pelosi (D-San Francisco) to either intervene with the Bush administration or overrule it.
"We strongly urge your support in reversing the recent directive," said a letter to Pelosi signed by Schwarzenegger, state Senate President Pro Tem Don Perata (D-Oakland) and Assembly Speaker Karen Bass (D-Los Angeles).
Pelosi and other members of the California congressional delegation have written to Leavitt asking for reconsideration.
But California officials fear the issue will not be resolved before Congress, consumed lately by the national financial crisis, adjourns for the year. They hope to at least postpone the new rules until next year, when Congress is back in session and there is a new administration in Washington to reconsider them.
"The clock is running," Rosenstein said.
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jordan.rau@latimes.com
