The 214.8 Billion Budget: California Lawmakers' Focus on Homelessness and Health Care

As California lawmakers prepare to vote on a massive 214.8 billion operating budget, focused heavily on expanding access to health insurance and significantly increasing funding for homelessness and housing, the state is taking significant steps to address one of its most pressing social issues. The proposed budget, scheduled for review by Governor Gavin Newsom, aims to tackle these challenges head-on, with a particular emphasis on implementing new programs and expanding existing ones. This article delves into the details of the budget, highlighting the significant allocations towards homelessness and health care.

Addressing Homelessness

One of the central themes of the proposed budget is the increased spending on homelessness and housing initiatives. Lawmakers' intent is evident in the proposed $213.4 billion allocation for homelessness, a significant portion of which will be allocated towards creating new shelter and housing options, as well as expanding existing ones. This substantial investment underscores the severity of the state's homelessness crisis and the urgent need for comprehensive solutions.

Expanding Access to Health Insurance

Another critical component of the budget is the expansion of health insurance coverage. The proposed budget includes provisions that would make government-funded health insurance available to some low-income adults living in the country illegally, as well as covering a wider range of services, including vision, hearing, incontinence care, and podiatry. This expansion is expected to significantly improve the health outcomes of a large segment of the population, particularly those who may have previously lacked access to adequate health care.

Key Initiatives

Medi-Cal Expansion: Adults between the ages of 19 and 25 living in the country illegally would be eligible for Medi-Cal, the state's Medicaid program. The budget allocates approximately $98 million to cover around 90,000 individuals, highlighting the state's commitment to addressing the needs of undocumented residents. Subsidies for Lower-Income Families: Families of four earning up to $150,500 per year would receive assistance with their monthly health insurance premiums. The budget includes $418.7 million for this purpose, positioning California as a leader in offering subsidies to low-to-middle-income earners. Coverage for Those Who Refuse to Insure: The budget also includes a provision that would require individuals who refuse to purchase health insurance to pay a tax. This measure, which was part of Obamacare but was eliminated in the 2017 tax overhaul, is reintroduced to generate an estimated $317.2 million. Funding for Disability and Poor Populations

In addition to expanding health insurance coverage, the budget also focuses on enhancing the government-funded health insurance program for the poor and disabled. The program is set to spend $17.1 million on a range of health services, including vision, hearing, incontinence care, and podiatry. These benefits, which were eliminated during the Great Recession, are now being reintroduced to improve the overall health and well-being of this vulnerable population.

State Tax and Federal Approval

To further bolster the state's financial position, the budget includes a provision to seek federal approval to extend a tax on the companies managing the state's Medicaid program. If approved, this tax is projected to save the state around $1.8 billion, providing much-needed relief and support for state budgets.

The Governors Approval Process

While the budget has been agreed upon by both houses of the Legislature, it faces several hurdles before becoming law. Governor Gavin Newsom has 12 days to review the bill and either sign it into law or veto specific sections. The Legislature has not overridden a governor's veto in decades, but with Democrats controlling both houses, there is a possibility of such an override if the governor vetoes critical parts of the budget.

As California grapples with a range of socioeconomic challenges, the proposed budget serves as a testament to the state's commitment to addressing these issues through targeted spending. By allocating substantial funds towards health care and homelessness, the state aims to create a more equitable and sustainable future for all residents.