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

Jan 13, 2025 - 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 California Spending Plan: Health

Oct 16, 2025 - To support the fund, the legislation allocates a portion of money from excess balances in health plans ’ special abortion accounts. Health plans that participate in Covered California must use these accounts so that federal subsidies do not pay for abortion services.
https://lao.ca.gov/Publications/Report/5075

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

May 22, 2024 - Some money would remain in the reserve after this version of the MCO tax ends in 2026 to help sustain the augmentations in the future. This year ’s early action shifted $3.1  billion out of the reserve to help address the budget problem.
https://lao.ca.gov/Publications/Report/4905

Update on COVID-19 Spending in California

Nov 5, 2020 - Within the physical distancing category, most money has been spent on schools and community colleges to help local educational agencies shift to remote learning. The state also has spent money on housing and homelessness to facilitate physical distancing.
https://lao.ca.gov/Publications/Report/4292

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 2025-26 Budget: Medi-Cal Pharmacy Spending

Apr 3, 2025 - These rebates provide money back to the Medi ‑Cal program, effectively helping to offset some of the cost of the drugs. Most of the savings come from federally negotiated rebates. In addition, the state also negotiates supplemental rebates.
https://lao.ca.gov/Publications/Report/5026

The 2025-26 Budget: MCO Tax and Proposition 35

Feb 26, 2025 - This is because Proposition  35 ’s new rules in 2027 tend to direct larger portions of funds toward augmentations, leaving less money for offsetting General Fund spending in Medi-Cal. For example, were the MCO tax to generate about as much net revenue in 2027 as it does today, we estimate only around one-third of the net revenue (rather than more than half under the Governor ’s budget) would be available for the General Fund offset.
https://lao.ca.gov/Publications/Report/4992

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

Enhancing Federal Financial Participation for Consumers Served by the Department of Developmental Services

Nov 9, 2021 - If the Legislature ’s main goal were to save money, increasing Medi ‑Cal enrollment among DDS consumers would not achieve that goal. However, if it has a policy basis for wanting to increase Medi ‑Cal enrollment among DDS consumers, we recommend it consider one or both of the following options to do so in a relatively cost ‑effective way: Providing more hands ‑on Medi ‑Cal
https://lao.ca.gov/Publications/Report/4471

The 2017-18 Budget: An Overview of the Governor's Proposition 56 Proposals

Feb 22, 2017 - The proposed budget allocates all of this money to existing special funds. The Governor ’s budget did not provide a backfill to the tobacco tax that supports the General Fund, which the measure requires.
https://lao.ca.gov/Publications/Report/3573