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<DIV id=story_header><FONT face=Calibri>Get ready for 'Republican cuts with
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<H1 id=story_headline>Jerry Brown makes budget, health appointments</H1>
<H2 id=story_subheadline></H2>
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<H4 class=date>Published Wednesday, Dec. 08,
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<P>Gov.-elect Jerry Brown announced the first appointments of his administration
Tuesday, including the <STRONG>reappointment of Gov. Arnold Schwarzenegger's
finance director, Ana Matosantos</STRONG>.</P>
<P>Diana Dooley, legislative secretary and special assistant to Brown when he
was governor before, will be appointed secretary of the Health and Human
Services Agency, Brown announced.</P>
<P>Dooley is president and CEO of the California Children's Hospital
Association. </P>
<P>Brown, facing an estimated $25.4 billion budget deficit, has worked closely
with Matosantos to prepare a budget proposal for January, and her appointment
was expected.</P>
<P>"She certainly knows where all the skeletons are buried," said Larry Gerston,
a political science professor at San Jose State University. "To that extent, he
(Brown) can start moving forward right away, rather than spend so much time
playing catch-up."</P>
<P>Matosantos, 35, and Dooley, 59, are Democrats, as is Brown.</P>
<P>"<STRONG>Ana has what it takes to manage the Department of Finance during
this period of fiscal crisis</STRONG>,"<STRONG> Brown said in a prepared
statement. Finance officials believe Matosantos will become the first finance
department director to serve under governors of different parties.</STRONG></P>
<P>The announcement preceded a budget forum Brown is hosting today in
Sacramento. Lawmakers, constitutional officers and some 1,200 local officials
were invited to attend.</P>
<P>Matosantos stepped down Monday as Schwarzenegger's finance director and
joined Brown's transition team Tuesday, according to finance spokesman H.D.
Palmer. Schwarzenegger appointed chief deputy finance director Cynthia Bryant to
replace Matosantos for the rest of his term. </P>
<P>Dooley will take over the Health and Human Services Agency as the state
implements federal health care reform and grapples with funding for social
services. Her appointment affords her a post on a powerful five-member board
that will be responsible for running a state-run health insurance exchange.</P>
<P>Dooley said the state's safety net is "stretched to the point of being
tattered in places" and that her challenge will be to preserve essential
services with limited funding.</P>
<P>"It isn't a pretty picture," Dooley said. "There will be very difficult
decisions to be made, and there will have to be sacrifices made by
everyone."</P>
<P>Though Brown has waited longer than some previous governors to announce
appointments to his administration, his doing so Tuesday came earlier than in
1974, when Brown first won election. That year, it wasn't until the final days
of December that Brown announced his first appointments. </P>
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