The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - Under Proposition  35, the state must spend $300  million each in 2025 and 2026 on behavioral health ‑related services. As part of the 2025 ‑26 budget, the administration developed an initial spending plan focused on data sharing and housing subsidies.
https://lao.ca.gov/Publications/Report/5146

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

Feb 5, 2025 - Proposition 1 (2024) will provide an additional $4.4 billion to the program. This report assesses the allocation of the $1.8 billion in awards already made to give the Legislature the tools to conduct oversight of the Proposition 1 funding that will be provided by way of BHCIP beginning May 2025.
https://lao.ca.gov/Publications/Report/4954

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 - Accordingly, the administration ’s Proposition  35 spending plan treats this cost growth as an augmentation in 2025 and 2026. Because the General Fund would have otherwise covered these costs, the spending plan also scores these amounts as budget solutions.
https://lao.ca.gov/Publications/Report/5075

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

Oct 24, 2025 - The tax rate on Medi ‑Cal enrollment ($274 per member, per month in 2025) is more than 100 times the tax rate on commercial enrollment ($2 per member, per month in 2025). Proposition  35, however, limits the size of the tax on commercial enrollment to nominal amounts.
https://lao.ca.gov/Publications/Report/5083

The 2026-27 Budget: Department of Developmental Services

Mar 13, 2026 - Quality Incentive Payments in Place Since 2025. The final phase of rate reform has been implemented since January 2025. Since this time, rate models are fully funded, with the 90   percent (base rate) and 10   percent (quality incentive payment) structure set out in statute.
https://lao.ca.gov/Publications/Report/5157

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 2025-26 Budget: MCO Tax and Proposition 35

Feb 26, 2025 - The 2025-26 Budget: MCO Tax and Proposition 35 3.6 MCO = managed care organization. Continues Funding 2024 Rate Increase … Though the MCO tax spending plan has changed over time, a few augmentations have remained throughout each plan.
https://lao.ca.gov/Publications/Report/4992

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - These solutions yielded General Fund savings of $11  billion through 2025 ‑26. The Governor ’s budget reduces this amount by $1.3  billion through 2025 ‑26. The reason for the reduction is the recent voter approval of Proposition  35 (2024), which requires the state to spend less MCO tax money on offsetting General Fund spending and more money on provider rate increases.
https://lao.ca.gov/Publications/Report/4951

The 2025-26 Budget: Medi-Cal Fiscal Outlook

Nov 20, 2024 - Proposition  35 likely will result in more General Fund costs in the budget window (through 2025 ‑26). 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.
https://lao.ca.gov/Publications/Report/4941