The 2024-25 Budget: The MCO Tax Package at May Revision

May 22, 2024 - To the extent the Legislature pursues certain rate augmentations, dollar-for-dollar reductions in other areas of the budget would be required. Background MCO Tax State Has Renewed and Increased the MCO Tax.
https://lao.ca.gov/Publications/Report/4905

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

Oct 24, 2025 - 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. How Proposition 35 Interacts With Federal Law Makes Tax Permanent, Conditioned on Federal Approval.
https://lao.ca.gov/Publications/Report/5083

The 2026-27 Budget: Department of Developmental Services

Mar 13, 2026 - The department has stated that its goal is to have as many providers as possible earn the quality payments, but it has not yet discussed how it might approach circumstances in which providers do not achieve them.
https://lao.ca.gov/Publications/Report/5157

The 2019-20 Budget: Undoing California’s Outstanding Budgetary Deferrals

Mar 26, 2019 - Depositing Money Into Reserves Generates Interest Payments. Money held in the state ’s cash reserves is not idle. The State Treasurer ’s Office (STO) invests state funds, including reserves, in the Pooled Money Investment Account (PMIA), generating an investment return.
https://lao.ca.gov/Publications/Report/3988

The 2019-20 Budget: Analysis of the Carve Out of Medi-Cal Pharmacy Services From Managed Care

Apr 5, 2019 - While eligible providers could continue to generate earnings through 340B for drugs dispensed to non ‑Medi ‑Cal enrollees, by transitioning Medi ‑Cal pharmacy services entirely to a FFS benefit, 340B ‑eligible providers would no longer be able to generate earning on any pharmacy ‑dispensed drugs paid for by Medi ‑Cal.
https://lao.ca.gov/Publications/Report/3997

The 2025-26 Budget: Medi-Cal Fiscal Outlook

Nov 20, 2024 - This is because the measure requires the state to use more MCO tax money to increase Medi-Cal services, rather than to offset General Fund spending. The exact fiscal impact depends on how the state implements the measure ’s complex rules.
https://lao.ca.gov/Publications/Report/4941

Fiscal Outlook: In-Home Supportive Services (IHSS)

Nov 15, 2017 - The administration has conducted a number of stakeholder meetings to develop the policies for when an IHSS provider will be eligible to earn and use paid sick leave. We note that actual costs associated with paid sick leave will depend on the number of providers who earn and utilize paid sick leave.
https://lao.ca.gov/Publications/Report/3712

The 2026-27 Budget: Medi-Cal Fiscal Outlook

Nov 19, 2025 - Keeping these factors in mind, our outlook r eflects a decline in the private hospital fee, with annual revenue falling from nearly $10  billion to several billion dollars. Pursuant to state law, most of the decline in revenue will affect supplemental payments to private hospitals, with only a portion (around 25  percent) resulting in less money for existing Medi ‑Cal costs.
https://lao.ca.gov/Publications/Report/5092

Update on COVID-19 Spending in California

Nov 5, 2020 - For example, school closures disrupted how students would traditionally receive free or reduced price meals during the school day. Both the federal and state government provided additional money so local educational agencies could continue providing meals to students who are now learning remotely.
https://lao.ca.gov/Publications/Report/4292

The Uncertain Affordable Care Act Landscape: What It Means for California

Feb 17, 2017 - Accrued interest and earnings in an HSA are also tax ‑free under current federal law. Current state law differs from federal law in that HSA contributions, interest, and earnings (but not distributions) are subject to the state income tax.
https://lao.ca.gov/Publications/Report/3569