LOS ANGELES – Jan. 13, 2025 – On Friday the California Department of Finance unveiled Governor Gavin Newsom’s 2025-26 state budget proposal of $322 billion, projected to be the second largest state spending plan ever. Following last year’s deficit, the state anticipates a modest budget surplus, thanks in part to $17 billion in unanticipated revenue.
California’s improved revenue outlook alongside the Governor’s commitment to protecting health care investments is encouraging. The budget retains Medi-Cal expansions to all income-eligible people, funding for the non‐hospital clinic 340B Supplemental Payment Program and investments in behavioral health services.
The budget proposal excludes, however, funding for renewing the Health Enrollment Navigators project. This project funds partnerships across the state, including a robust network of health centers and community-based organizations in Los Angeles County, to expand direct support for individuals seeking to enroll in health care programs. Navigators will be even more crucial in the coming year as Californians navigate the complexities of Medi-Cal enrollment and renewals in the context of the new federal administration. We encourage the state to renew and expand funding for its navigator programs.
After voters overwhelmingly passed Proposition 35 to secure funding for Medi-Cal last November, the state has an historic opportunity to transform the program. Health centers look forward to working with the administration and our partners to implement this critical investment.
We share the Governor’s questions and concerns about the potential impact of policy changes at the federal level on our state, especially efforts to decimate Medicaid financing. Federal cuts could have dire implications for Medi-Cal. Health centers are committed to engaging with the state and our many allies to preserve Medi-Cal and the gains we have made to expand coverage, improve access and transform care.
As California prepares for the incoming federal administration, we applaud the governor’s leadership in ensuring our state has the resources to preserve our values and protect our residents. Health centers will continue to partner with the governor, legislature, members of Congress and other constituents to advance our mission of expanding access to high-quality, equitable health care for all.
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About the Community Clinic Association of Los Angeles County
Founded in 1994, the Community Clinic Association of Los Angeles County (CCALAC) is the largest regional association of community health centers in California. Health centers in Los Angeles serve more than 1.97 million patients at over 450 sites across the county. The majority of these patients (72%) have low incomes, and 92% are covered by public insurance or uninsured. CCALAC is dedicated to helping health centers remain at the forefront of health care transformation, in support of the patients and communities they serve. For more information about CCALAC, visit www.ccalac.org or call (213) 201-6500.
Contact: Taryn Burks – Communications Manager, media@ccalac.org | (213) 201-6529.