CA Budget Deficits Threaten Funding
Key Questions
What does Governor Newsom's May Revision propose for the state budget?
The proposal totals $350 billion and projects deficits of $20-30 billion, including a $4.2 billion shortfall in Medi-Cal funding. It also suggests restoring the $2,000 asset test for Medi-Cal eligibility starting January 2027.
How are cities like San Francisco addressing budget shortfalls?
San Francisco plans to use one-time reserves such as $34 million while cutting $10.7 million from senior grants. Other counties are relying on similar buffers amid ongoing fiscal pressures.
What changes are proposed for immigrant Medi-Cal coverage?
The budget includes ending non-emergency dental coverage for some immigrants in July 2026 and potential premium or eligibility adjustments. These measures aim to reduce costs amid the broader deficit.
What is CSAC's stance on the Senate and Assembly budget proposals?
CSAC rejects the IHSS cost-shift in the Senate budget and supports increases for Medi-Cal and CalFresh. It also praised the Assembly proposal as progress against federal H.R.1 cuts estimated at $9.5 billion annually for counties.
What arguments are being made for further Medi-Cal reductions?
An opinion piece advocates work requirements and ending coverage for undocumented immigrants to achieve savings. This adds to ongoing debates over balancing the budget while protecting safety-net programs.
Newsom May Revision proposes $350B with $4.2B Medi-Cal shortfall amid $20-30B deficits. Asset test restoration (reviving $2,000 limit) proposed for Jan 2027. Counties and cities buffer via one-time funds like SF's $34M reserve, but SF also cuts $10.7M from senior grants. Immigrant premium/dental cuts and eligibility shifts proposed. New: CSAC rejects IHSS cost-shift in Senate budget, supports Medi-Cal/CalFresh increases; also issues statement on Assembly budget, praising it as step forward against H.R.1 cuts, estimating $9.5B annual county cost from H.R.1 cuts. An opinion piece argues for cutting Medi-Cal via work requirements and ending coverage for undocumented immigrants, adding to the political debate.