The revised budget proposal released May 14 by Gov. Gavin Newsom attempts to address the impacts of major cuts to the federal funding California receives – but once again, the proposal falls short.
While there are some bright spots in the budget that try to offset harms from H.R. 1, the May Revise erects more barriers to health for children and families in California.
The Governor proposes a few revenue-generating mechanisms, including a cap on the amount of tax credits corporations can take. We are pleased to see the Governor, and the Senate in their own separate proposal, make recommendations for revenue generation – something we and our partners have been and will continue to call for. However, these recommendations from the Governor are modest. California cannot continue to balance its budget on the backs of those who can least afford it.
We must do better for all Californians and enact a budget that supports healthy, thriving futures for everyone in our communities.
“Gov. Newsom spoke a lot about California’s economic ‘dominance’ today, but the revised budget he proposed does not translate that to support for people who need it most, including our state’s children and families,” said Sarah Dar, vice president of policy and advocacy for The Children’s Partnership. “To require our immigrant communities to shoulder even more burden than what was proposed in January is unconscionable and goes against our values as Californians. To the Governor’s point, this state generates a lot of money and wealth. California can and must capture these resources to spend them in ways that prop up our families and do not ask for more from people who don’t have it to give.”
The Children’s Partnership is extremely disappointed in the additional cuts and burdens placed on children and families who depend on our state’s safety net programs for their health and well-being. Despite referring to California in his press conference as “a state that prides itself on abundance and a mindset that provides for those most in need,” the Governor is continuing to propose cruel requirements on our state’s communities most vulnerable to the federal impacts he so vehemently disagrees with. Gov. Newsom’s decisions to reinstate exclusions for certain populations in the last two budget cycles have moved us further away from Health4All, which he previously championed.
The Governor’s May Revise does include some changes from the January proposal that gave us encouragement:
- $300 million to lower health care premiums for Covered California consumers.
- A continued $1 billion investment in Community Schools, which have improved academic outcomes for historically underserved students.
- No cuts to CalWORKs, including maintaining funding levels for the home visiting program.
- $20 million increase for immigration legal services supporting Californians facing detention and deportation.
- $30 million for food banks.
- Increase for child care administrative and support costs, along with additional infrastructure funding for facilities impacted by natural disasters, will help stabilize providers that families rely on every day.
- One-time augmentation for county administration to account for the increased workload driven by HR 1. We encourage the state to pursue all possible tools to streamline applications and renewals, keep families covered, and reduce the burden on county workers.
As Gov. Newsom and the Legislature begin budget negotiations, we urge them to consider the following:
- Do away with the increase in the monthly Medi-Cal premium from $30 to $50 for already enrolled adults ages 19-59 with “unsatisfactory immigration status.”
- Remove the Medi-Cal enrollment freeze for immigrants with “unsatisfactory immigration status” beginning Jan. 1, 2027.
- Adopt the Senate’s support for a Medi-Cal employer fair share contribution requirement, which would provide long-term revenue to recover billions in state costs to mitigate the devastating impacts of H.R. 1, keeping Californians covered.
- Include a one-time allocation of $750,000 for the Department of Health Care Services to report on the utilization of the Community Health Worker/Promotora/Representative Medi-Cal benefit, ensuring transparency and informing guidance for managed care plans on using the CHW/P/R workforce to support the implementation of new H.R. 1 Medi-Cal work and renewal requirements for eligible families.
- A $4 million one-time investment to strengthen the Department of Health Care Access and Information’s CHW/P/R workforce capacity for health navigation, trauma-informed outreach and education, and enrollment assistance so families don’t lose access to trusted health care support.
- A $50 million increase for immigration legal services, instead of the proposed $20 million, to actually meet the scale of the crisis immigrant families are experiencing and help families stay together.
- Reject the Governor’s proposed elimination of 988 mobile crisis response as a statewide Medi-Cal funded service, which provides community-based interventions for children and youth in crisis
Gov. Newsom said in his press conference today that he’ll be working until the last day of his term as governor “to finish the job.” An important part of that job will be to negotiate a 2026-27 budget deal with the Legislature that reflects our California values and makes sure wealthy corporations pay their fair share. The health of all our children and families depends on it.
