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

The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - Medi ‑Cal ’s share of General Fund expenditures was increasing, contributing to the budget problem that had emerged between the Governor ’s budget and  May  Revision. 2025 ‑26 Enacted Budget Included Several Solutions in Medi ‑Cal Program.
https://lao.ca.gov/Publications/Report/5146

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

Mar 2, 2026 - In this report, we analyze the Governor’s budget for Medi-Cal, with a focus on base spending trends, changes to provider taxes, implementation of new H.R. 1 rules, oversight over enacted budget solutions, and considerations for identifying additional savings in Medi-Cal.
https://lao.ca.gov/Publications/Detail/5146

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

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 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: Department of Developmental Services

Mar 13, 2026 - Individual Services Vary in Growth Rates and the Relative Share of Expenditures Over Time. Across all services, the average annual growth rate in spending from 2021 ‑22 to 2026 ‑27 (proposed) is 19  percent.
https://lao.ca.gov/Publications/Report/5157

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