In his annual State of the State message last week, Governor Arnold Schwarzenegger chastised California’s  Congressional delegation for supporting the U.S. Senate and House versions of health care reform legislation. In his speech, Schwarzenegger said, “We are currently owed billions of dollars by the federal government for various programs. We need to work with the feds so that we can fix the flawed formula that demands that states spend money they do not have.

Now Congress is about to pile billions more onto California with the new health care bill.” Schwarzenegger and a number of other governors believe the additional costs levied on states from health reform will further damage their ability to get out from under massive budget deficits. In other developments, U.S. Senator Diane Feinstein sent a letter to Schwarzenegger and legislative leaders urging them to support the regulation of health care premiums in California. Over the past several years, legislation has been introduced that would have enacted a premium approval process in the state, but it has consistently been rejected by the legislature.