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

Jan 13, 2025 - Some of the largest budget solutions in the June budget package involved the MCO tax, a tax on health plans that supports the Medi ‑Cal program. Last year ’s budget notably increased the size of the MCO tax, generating more revenue for Medi ‑Cal.
https://lao.ca.gov/Publications/Report/4951

The 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - CDPH = California Department of Public Health; COVID ‑19 = coronavirus disease 2019; CHHS = California Health and Human Services Agency; HHS = Health and Human Services; GARE = Government Alliance on Race and Equity; EMSA = Emergency Medical Services Authority; CalAIM = California Advancing and Innovating Medi ‑Cal; ICF ‑DDs = Intermediate Care Facilities for the Developmentally
https://lao.ca.gov/Publications/Report/4432/2

The 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - ADRC = Aging and Disability Resources Centers; Cal ‑OAR = CalWORKs Outcomes and Accountability Review; IT = information technology; FFPSA = Federal Family First Prevention Services Act; DCSD = Department of Community Services and Development; DDS = Department of Developmental Services; DOR = Department of Rehabilitation; DSS = Department of Social Services; HDAP=Housing and
https://lao.ca.gov/Publications/Report/4432/5

The 2022-23 Budget: Overview of the Governor's Budget

Jan 13, 2022 - By not proposing to renew the MCO tax, the Governor ’s budget would allow it to expire, raising General Fund costs in Medi ‑Cal by $1.6  billion or more annually beginning in 2023 ‑24. The administration has shared that the scheduled reprocurement of Medi ‑Cal MCO contracts and anticipated volatility in the Medi ‑Cal caseload present challenges for renewing the MCO tax.
https://lao.ca.gov/Publications/Report/4492

The 2023-24 Budget: Overview of the Governor's Budget

Jan 13, 2023 - The  key item in this category is a proposal for the state to reauthorize a tax on managed care organizations that draws down additional federal funds and offsets costs in Medi ‑Cal. While the fiscal impact of this reauthorization would be small in the budget window —an estimated $300  million in 2023 ‑ 24 —the effect would be much larger in future years, rising to roughly $2  billion in General Fund savings as early as 2024 ‑25.
https://lao.ca.gov/Publications/Report/4662