What’s happening: On May 14, Gov. Gavin Newsom released his May Revision budget proposal for 2025-26, which diverts much of the funds from Proposition (Prop) 35 away from their intended purpose — provider payment increases — to address a $12 billion projected budget deficit.
What else to know: The proposal utilizes $1.6 billion in Prop 35 funds to offset costs that would otherwise be borne by the General Fund. CHA’s preliminary summary of the governor’s proposal assesses the overall budget picture and solutions, Medi-Cal budget solutions, and more.
CHA’s media statement on this proposal points out that not only is the proposal a direct violation of state law, but also a snub to the millions of California voters — 68% — who supported this ballot measure last fall.
Newsom’s revised budget kickstarts a focused effort by state policymakers to have a legislatively approved budget in place by the new fiscal year, which starts July 1. It reflects a significantly more pessimistic budget picture than in January, assuming revenues are down and expenditures are up.
