The 2025-26 Budget: MCO Tax and Proposition 35 [Publication Details]

Feb 26, 2025 - The 2025-26 Budget: MCO Tax and Proposition 35 [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/4992

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 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

Mental Health Services Act: Proposed Restructuring of the MHSA Funding Categories and Impacts on County Spending

Jul 13, 2023 - Approved by voters in 2004, the MHSA places a 1  percent tax on personal income over $1  million and dedicates the associated revenues to mental health services. The vast majority ­ of MHSA revenues —at least 95   percent —goes directly to counties, which use it to support a variety of services for individuals with or at risk of mental illness.
https://lao.ca.gov/Publications/Report/4782

The 2024-25 California Spending Plan: Health

Sep 17, 2024 - The CCR is funded primarily by federal funds and Proposition  99 tobacco tax revenues, the latter of which has been declining in recent years. The spending plan includes $800,000 of one-time funding in 2024-25 and $2  million ongoing General Fund to support CCR and maintain data system integrity.
https://lao.ca.gov/Publications/Report/4930

The 2024-25 Budget: Medi-Cal Fiscal Outlook

Dec 7, 2023 - In addition, the 2023-24 budget package includes a number of reductions, delays, and other solutions intended to help balance General Fund revenues and expenditures. A few of these solutions are in Medi-Cal, including a renewed tax on health insurance plans (described below).
https://lao.ca.gov/Publications/Report/4820

The 2025-26 Budget: Medi-Cal Fiscal Outlook

Nov 20, 2024 - MCO Tax Federal Approval of Recent MCO Tax Increases Is Pending. To go into effect, the MCO tax must receive federal approval, conditioned on meeting certain rules. The federal government approved the current version of the MCO tax in December 2023.
https://lao.ca.gov/Publications/Report/4941

Mental Health Services Act: Revenue Volatility and the Governor’s Proposal to Reduce Allowable County Reserves

Jul 13, 2023 - While the degree to which expenditures on these other activities would squeeze out potential reserve deposits under the Governor ’s proposal is unclear, we think imposing caps on both reserve deposits and cumulative reserve balances may be overly constraining.
https://lao.ca.gov/Publications/Report/4780

An Update on the Public Health Laboratory System After the Pandemic

Jun 12, 2025 - There is currently around $70  million in supplemental ELC funding that remains available for expenditure by local public health laboratories in California through 2026-27. (At the time of this post, the CDC has issued an order to rescind at least a portion of these funds prior to their original end date.)
https://lao.ca.gov/Publications/Report/5056

Mental Health Services Act: Proposed Change in Mental Health Services Oversight and Accountability Commission’s Role

Jul 13, 2023 - The department collects MHSA revenue and expenditure data, reviews prudent reserve levels, and monitors whether county expenditures match county planning documen ts. DHCS also oversees the Mental Health Service Fund (the special fund into which MHSA revenues are deposited) and calculates whether any county MHSA fund balances are subject to reversion.
https://lao.ca.gov/Publications/Report/4781