The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - Rather, the lower revenues are due to the interaction of H.R.  1 ’s new proportionality rules with Proposition  35 ’s limit on taxing commercial enrollment. As we noted in our recent report Considering Medi‑Cal in the Midst of the Changing Fiscal and Policy Landscape , the state likely could amend Proposition 35 with a three‑fourths vote in each house, so long as the changes are consistent with the purpose and intent of the measure.
https://lao.ca.gov/Publications/Report/5146

Middle Class Scholarship Program [EdBudget]

Feb 3, 2026 - Projections for 2026-27 assume a 5 percent increase in recipients and, as proposed by the administration, a 50 percent decrease in award coverage (from 35 percent award coverage in 2025-26 to 17.5 percent coverage in 2026-27).
https://lao.ca.gov/Education/EdBudget/Details/1056

The 2026-27 Budget: Community College Facilities

Mar 17, 2026 - Third, although the scoring system grants more points to projects with higher local contributions, half of the projects selected this year have relatively low local contributions (less than 35  percent).
https://lao.ca.gov/Publications/Report/5159

The 2025-26 Budget: MCO Tax and Proposition 35

Feb 26, 2025 - Assessment and Recommendations for Legislative Oversight While Limited in Detail, Administration ’s Approach to Proposition  35 Appears Reasonable. At the moment, the administration does not have a complete Proposition  35 implementation plan to assess.
https://lao.ca.gov/Publications/Report/4992

2026-27 Changes in Proposition 98 Spending [EdBudget]

Jan 23, 2026 - b Reflects additional LCFF costs associated with serving more students in transitional kindergarten, including costs of lower transitional kindergarten staffing ratios. c Applies to Special Education, State Preschool, Child Nutrition, Equity Multiplier, K-12 Mandates Block Grant, Charter School Facility Grant Program, Foster Youth Services Coordinating Program, Adults in Correctional Facilities,
https://lao.ca.gov/Education/EdBudget/Details/1067

Proposition 35 [Ballot]

Nov 5, 2024 - In the short term (in 2025 and 2026), Proposition  35 would have the following key fiscal effects: No Change to State Tax Revenue. Proposition  35 does not change the existing temporary tax on health plans, which expires at the end of 2026.
https://lao.ca.gov/BallotAnalysis/Proposition?number=35&year=2024

Considering Medi-Cal in the Midst of a Changing Fiscal and Policy Landscape

Oct 24, 2025 - Proposition  35, however, limits the size of the tax on commercial enrollment to nominal amounts. (The box below provides more information on Proposition  35 ’s interaction with federal rules.) As a result, the health plan tax under H.R.  1 likely will raise tens of millions of dollars annually, rather than the billions of dollars it currently  generates.
https://lao.ca.gov/Publications/Report/5083

The 2026-27 Budget: California Student Aid Commission

Feb 17, 2026 - To help mitigate this issue, in 2025 ‑26, rather than setting the appropriation for MCS and adjusting award coverage accordingly, the state locked in the percentage of award coverage that year at 35  percent.
https://lao.ca.gov/Publications/Report/5127

The 2026-27 Budget: In-Home Supportive Services

Mar 18, 2026 - Historically, counties paid 35  percent of the nonfederal share of IHSS service costs and 30  percent of the nonfederal share of IHSS administrative costs. In the early 2010s, this share of cost model was replaced with an IHSS MOE.
https://lao.ca.gov/Publications/Report/5166

The 2026-27 Budget: Medi-Cal Fiscal Outlook

Nov 19, 2025 - General Fund Backfill Needed Due to Proposition   35 (2024). Our baseline outlook also projects costs to rise due to Proposition  35. The measure made a longstanding provider tax on health plans (known as the Managed Care Organization [MCO] Tax) permanent in state law.
https://lao.ca.gov/Publications/Report/5092