The 2026-27 Budget: Department of Developmental Services

Mar 13, 2026 - For example, the spending share of residential services has decreased from 46  percent to 38  percent, while the spending share of support and training services has increased from 8  percent to 15  percent.
https://lao.ca.gov/Publications/Report/5157

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

Oct 24, 2025 - Previous Medicaid law allowed, but did not require, states to impose cost ‑sharing requirements on select populations. The new requirement will only apply to childless adults earning more than 100  percent of the federal poverty limit.
https://lao.ca.gov/Publications/Report/5083

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

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 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 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

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

Nov 9, 2021 - Not only would this approach cost the state money on net, but it potentially would discourage some families from seeking needed RC ‑coordinated services. Introduction The Department of Developmental Services (DDS) currently serves a relatively small share of consumers who are eligible for, but not enrolled in, Medi ‑Cal, the state ’s Medicaid program, and
https://lao.ca.gov/Publications/Report/4471

The 2025-26 Budget: Understanding Recent Increases in the Medi-Cal Senior Caseload

Mar 6, 2025 - Individuals who are enrolled in share ‑of ‑cost Medi ‑Cal, but who have not met their share of cost in a given month, are not reflected in the caseload data. By eliminating the share ‑of ‑cost requirement for these individuals, we estimate that this expansion brought around 30,000 new Medi ‑Cal members into the program in a single  month.
https://lao.ca.gov/Publications/Report/5010

The 2025-26 Budget: MCO Tax and Proposition 35

Feb 26, 2025 - This is because the augmentations were scheduled to ramp up in 2025 and 2026, requiring a larger share of MCO tax funds. Under Proposition  35, the cost of this backfill is even higher, as even more MCO tax funding must be allocated toward augmentations.
https://lao.ca.gov/Publications/Report/4992