Editorial: State political leaders finally ready to compromise on health reform

San Jose Mercury News Editorial

Maybe Gov. Arnold Schwarzenegger's great health care debate of 2007 will have a Hollywood-style happy ending, after all.

The governor and Assembly Speaker Fabian Núñez, D-Los Angeles, are finally showing a willingness to compromise on the most contentious issues that have hindered progress on significant health care reform for months in Sacramento.

But Californians should hold off on celebrating. Even if the governor and legislative Democrats reach a final accord, voters next November still would have to approve the funding mechanism. Going to the ballot box for financing approval is a daunting and risky notion. But the developments of the past week are positive, and the momentum should continue.

It would be appropriate if history were to record that one of the most decisive moments of this year's health care debate occurred Friday in San Jose.

Throughout the summer and fall, the governor has refused to budge from his notion that businesses not offering health care coverage to employees should be required to pay no more than 4 percent of payroll into a pool to provide coverage for the uninsured. The Democrats' plan calls for employers to contribute 7.5 percent, which the governor said was too much.