California's budget negotiations are intensifying as the June 15 deadline approaches, with health and social services cuts at the forefront. - Gov.
Newsom proposes $334.2 billion for programs like Medi-Cal, but reduces services due to federal aid cuts and a state deficit. - Legislative leaders seek to restore cuts and consider new taxes, including a $285 employer fee or renewing the Managed Care Organization tax.
- The California Association of Health Plans opposes the managed care tax, citing a 2024 ballot measure and potential $1.5 billion annual cost increase. - The budget analyst warns of California's vulnerability to revenue shortfalls due to low reserves and high debt.
The final budget will be Newsom's last, with implications for his successor.