The 2025-26 Budget: Medi-Cal Pharmacy Spending

Apr 3, 2025 - Though initially enacted via executive order , Medi‑Cal Rx later became permanent in state law when voters enacted Proposition 34 (2024) . Net Spending on Drugs Driven by Two Key Components. Medi ‑Cal pharmacy spending generally consists of two key components: Gross Payment for Drugs and Pharmacy Services.
https://lao.ca.gov/Publications/Report/5026

Building California’s Behavioral Health Infrastructure: Progress Update and Opportunities for the Proposition 1 Bond

Feb 5, 2025 - The shortage of mental health services is more severe for young adults, with 34  percent of individuals aged 18 through 25 having a mental illness in 2021 ‑2022 and less than two ‑thirds of young adults with mental illness receiving services  in 2022.
https://lao.ca.gov/Publications/Report/4954

The 2019-20 Budget: Proposition 56 Revenues: Reductions in Fixed Allocations

Feb 14, 2019 - The resulting 2020 ‑21 allocation would be $34  million. Fiscal Effects Likely Would Grow Over Time. As illustrated by the examples, the choice between the year-over-year method and the base year method could have substantial fiscal effects as soon as 2020 ‑21.
https://lao.ca.gov/Publications/Report/3939

Overview of Proposition 1 and Assessment of Behavioral Health Continuum Infrastructure Program [Publication Details]

Apr 7, 2025 - Overview of Proposition 1 and Assessment of Behavioral Health Continuum Infrastructure Program [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/5027

The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - Proposition 52 (2016) made the private hospital fee permanent, while Proposition 35 (2024) made the health plan tax permanent. The two provider taxes are not permanent in federal law, however—periodic federal approval is still required to draw down federal funds.
https://lao.ca.gov/Publications/Report/5146

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

Oct 24, 2025 - How Proposition 52 Works Makes Private Hospital Fee Permanent. Similar to Proposition  35 (2024) and the health plan tax, Proposition  52 (2016) made a pre ‑existing fee on private hospitals (known as the Hospital Quality Assurance Fee) permanent in state law.
https://lao.ca.gov/Publications/Report/5083

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

The 2025-26 California Spending Plan: Health

Oct 16, 2025 - As Figure  6 shows, the largest activity supported by the Proposition  35 spending plan is underlying growth in managed care costs. According to DHCS, managed care plans have increased rates for certain services (such as primary care) in the last few years.
https://lao.ca.gov/Publications/Report/5075

The 2018-19 Budget: The Administration's Proposition 55 Estimates in the May Revision

May 22, 2018 - Proposition  55 (2016). Proposition  55 (2016) extended tax rate increases on high ‑income earners from 2018 until 2030 (which voters originally passed on a temporary basis in 2012 as part of Proposition  30).
https://lao.ca.gov/Publications/Report/3844

The 2018-19 Budget: The Administration’s Proposition 55 Estimates

Mar 1, 2018 - Alternatively, the Legislature could use Proposition  55 funding for Medi ‑Cal to augment the program (for example, by increasing provider rates or expanding the scope of services). We note that Proposition  55 funding for Medi ‑Cal will vary from year to year.
https://lao.ca.gov/Publications/Report/3765