In Santa Cruz County California, an amazing 98% of children currently have health insurance. This is thanks partly due to a program called Santa Cruz Healthy Kids which offers coverage to children of low income households. A $17 million dollar deficit in the budget may result in the first freeze in 10 years, potentially leaving thousands on the waiting list. With 27,000 applicants each month, the freeze comes at a difficult time when there is greater need and more demand for the services. The state requires families to re-apply and enroll every 6 months, meaning that children are often at risk of losing their coverage and being unable to get it back. Studies have shown however, that the program has saved the state nearly $8 million dollars by preventing hospitalizations among covered children. Will the long term cost of denying coverage be greater than the cost of working it into the budget?