California Republican lawmakers are questioning how Democrats will spend an approved $1.5 billion boost to fund Medi-Cal while the state grapples with a budget deficit anywhere from $38 billion to $73 billion, depending on who you ask.
With Gov. Gavin Newsom‘s (D-CA) budget, the California Legislative Analyst’s Office reported that the state would spend about $36 billion on Medi-Cal during fiscal 2024, a decrease of about $1.4 billion from last year, according to the Sacramento Bee. Lawmakers approved a $1.5 billion boost to the managed care organization tax at the end of 2023, which still has to get the stamp of approval from the federal government.
Republican state Sen. Brian Dahle questioned Democratic lawmakers during a March budget committee hearing on specific details of how the additional money would be spent, the outlet reported.
“I would like to know. Because you exclude us, and this is my opportunity to find out if I can support this or not support it. If it’s going to help keep my rural hospitals open, then I might support it. If it’s not, I may not,” Dahle said, saying he doesn’t “get to be in those parties” between the governor and legislative leaders.
State Senate Budget Committee Chairman Scott Wiener, a Democrat, reportedly said those negotiations will happen between the governor and legislative leaders later. However, the Department of Finance spokeswoman told the local outlet that the $1.5 billion will be used to support Medi-Cal services and prevent reduction rates.
In January, state Senate Minority Leader Brian Jones asked Democrats to stop Medi-Cal funding for illegal immigrants to help curb the state’s massive budget deficit.
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Under Newsom’s January budget, an estimated 1.4 million illegal immigrants in California could be eligible for Medi-Cal, 9.5% of the total number of Medi-Cal cases for 2023-24.
Newsom initially predicted the state’s budget deficit would be about $38 billion. However, the Legislative Analyst’s Office released a report in February confirming that the shortfall is a whopping $73 billion — almost double what the governor had predicted. Newsom said not to rely solely on the Legislative Analyst’s Office report, and he has planned to use rainy-day funds to help fill the deficit. Since then, state lawmakers have tried to find ways to remedy the deficit while coming up with the funds for essential services.
