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

Jan 13, 2025 - New Tax Expenditures of $150   Million. The Governor ’s budget includes some revenue proposals, which would expand existing tax expenditures and create new ones. This includes increasing the existing film tax credit from $330  million to $750  million per year and excluding some military retirement income from taxation.
https://lao.ca.gov/Publications/Report/4951

Considering Medi-Cal in the Midst of a Changing Fiscal and Policy Landscape [Publication Details]

Oct 24, 2025 - We describe the changing fiscal and policy landscape for Medi-Cal resulting from Congressional enactment of H.R. 1 and the key issues facing the Legislature.  See our companion infographic
https://lao.ca.gov/Publications/Detail/5083

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

Oct 24, 2025 - Impact to Medi‑Cal Providers Health Plan Tax May Become Very Small … Under the new provider tax rules, the tax on health plans likely will be much smaller than under current law. This is because the state would have to significantly reduce tax rates to make the Medi ‑Cal and commercial tax rates proportional.
https://lao.ca.gov/Publications/Report/5083

The 2026-27 Budget: Medi-Cal Fiscal Outlook [Publication Details]

Nov 19, 2025 - This brief summarizes our annual outlook for General Fund spending on Medi-Cal.
https://lao.ca.gov/Publications/Detail/5092

The 2026-27 Budget: Medi-Cal Fiscal Outlook

Nov 19, 2025 - Why Does the Health Plan Tax Decline Under H.R. 1? Existing Health Plan Tax Disproportionately Taxes Medi ‑Cal Enrollment. The existing tax on health plans (also known as the Managed Care Organization Tax) charges rates on every monthly Medi ‑Cal and commercial enrollee.
https://lao.ca.gov/Publications/Report/5092

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 California Spending Plan: Health

Oct 16, 2025 - Under the spending plan, General Fund spending for the Department of State Hospitals (DSH) is $2.9  billion in 2025-26, a decrease of $166  million (about 6  percent) from the revised 2024-25 expenditure estimate.
https://lao.ca.gov/Publications/Report/5075

The 2020-21 Budget: Medi-Cal Fiscal Outlook

Nov 20, 2019 - Were the federal government to either deny approval of the MCO tax or delay a decision on approving the MCO tax past 2019 ‑20, General Fund expenditures in Medi-Cal would be around $860  million higher in 2019 ‑20 than we have estimated.
https://lao.ca.gov/Publications/Report/4116

The 2019-20 Budget: Analysis of the Medi-Cal Budget

Feb 13, 2019 - This represents a significant reduction from the $ 711  m illion in Proposition  56 funding that offset General Fund expenditures in Medi ‑Cal in 2017 ‑18. Establish a Physician and Dentist Student Loan Repayment Program.
https://lao.ca.gov/Publications/Report/3935

The 2023-24 California Spending Plan: Health

Oct 23, 2023 - Generally, the state in past years used the MCO tax solely to offset General Fund spending on Medi-Cal ’s existing budget. The new version of the MCO tax, by contrast, includes an expenditure plan for the funds with mixed uses.
https://lao.ca.gov/Publications/Report/4810