LOS ANGELES – May 10, 2024 – Today, Governor Gavin Newsom unveiled his May Revision budget proposal for the 2024-25 fiscal year, which aims to address California’s significant budget deficit. After an early action budget package that included $17.3 billion of solutions, the Governor projects a remaining $27.6 billion budget problem. While the proposal protects most core services, it also includes cuts and reductions that will jeopardize access to care and services for millions of California’s lowest-income residents. The proposal protects, with some exceptions, the state’s historic Medi-Cal expansion to all income-eligible people but cuts critical workforce funding.
The Newsom Administration has repeatedly demonstrated its commitment to ensuring all Californians can access health care through expansions of Medi-Cal eligibility. For coverage to translate into meaningful access, however, the state must invest in the providers and facilities that patients depend on.
We applaud the proposal to continue investments in Medi-Cal coverage but are disappointed that it eliminates In-Home Supportive Services (IHSS) for individuals without documentation. This proposal means that immigration status will continue to affect people’s ability to fully access services—a reversal of the state’s intent to truly expand access to care for all, regardless of immigration status.
Further, the budget proposes reversals on other important Medi-Cal investments, such as funding for the safety net and our health care workforce. Last year’s budget included an agreement to invest $50 million in Managed Care Organization (MCO) Tax revenue into community health centers, along with other critical safety net investments such as rate increases for providers. The Governor’s new proposal redirects that funding, which is crucial to the state’s efforts to advance access, quality, and equity for Medi-Cal members.
The May Revise also reduces spending for critical health care workforce initiatives including the Health Professions Career Opportunity Program, the California Medicine Scholars Program, and the Song-Brown Residency Program. While California continues to expand and enhance the Medi-Cal program, clawing back on workforce investments is counterproductive amidst a severe and worsening statewide health care workforce shortage. Investments in workforce and our safety net are essential to ensure that the one in three Californians who are covered by Medi-Cal can find a doctor when they need care.
“We recognize that in a budget deficit, the state must make difficult decisions, but not at the expense of our critical safety net health care system,” said Louise McCarthy, President and CEO of the Community Clinic Association of Los Angeles County. “The state must continue to invest in Medi-Cal and our health care workforce to ensure people can meaningfully access the health care they need.”
In the coming weeks we look forward to working with the legislature and the Administration to develop a budget that includes the necessary investments in the Medi-Cal provider network and health care workforce for a sustainable, equitable health care system.
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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.
The Governor’s revised budget striking a balance in Medi-Cal expansion is crucial, but cutting healthcare workforce investments may undermine our long-term healthcare stability. Prioritizing both coverage and workforce growth is essential for comprehensive health reform.
This budget revision is a mixed bag—it’s crucial to preserve Medi-Cal coverage expansions, but cutting health care workforce investments could undermine long-term care quality. Balancing both is essential for a healthier future.