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

May 22, 2024 - The administration has not provided further detail on how the proposed payment would work. Backfills Declining Proposition  56 Funds. Proposition  56 (2016) increased taxes on tobacco products. The state uses most of the associated revenue to fund supplemental payments to certain Medi-Cal providers.
https://lao.ca.gov/Publications/Report/4905

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

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

Oct 24, 2025 - The new requirement will only apply to childless adults earning more than 100  percent of the federal poverty limit. Certain services, such as primary care and behavioral health care, are excluded from the  requirement.
https://lao.ca.gov/Publications/Report/5083

The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - Individuals must generally work, study, or volunteer at least 80  hours per month, or meet an earnings threshold (about $580 per month, equivalent to 80 hours at the federal minimum wage) unless they qualify for certain exemptions (such as having young children or being medically frail).
https://lao.ca.gov/Publications/Report/5146

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 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 2026-27 Budget: Medi-Cal Fiscal Outlook

Nov 19, 2025 - 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

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

The 2025-26 Budget: MCO Tax and Proposition 35

Feb 26, 2025 - How Has Proposition  56 Impacted General Fund Spending? Enacted by voters in 2016, Proposition 56 increased taxes on tobacco-related products. The measure requires most of the resulting revenue to go to Medi-Cal.
https://lao.ca.gov/Publications/Report/4992

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

May 17, 2021 - Department of the Treasury recently released detailed guidance with more detail on how these funds can be used. How the Governor Proposes Allocating the ARP Funds. Figure  4 shows how the Governor proposes allocating the flexible funds in the ARP by program area.
https://lao.ca.gov/Publications/Report/4432