CSAC Statement on Senate’s Budget Proposal

California State Association of Counties (CSAC) CEO Graham Knaus issued the following statement Thursday in response to California State Senate subcommittees’ budget actions, which are expected to become elements of the Senate’s 2026-27 state budget proposal:

“The Senate’s budget is a solid starting point, especially on Medi-Cal and CalFresh eligibility support, In-Home Supportive Services, homelessness funding, and mobile crisis teams for Californians in mental distress. We’re ready to work with the Legislature and Governor on a final spending plan that protects communities from devastating cuts to health care, food support, homelessness programs and public safety.”

Background/Context:

• H.R. 1:
  • The Senate’s budget proposal addresses some of the impacts of H.R. 1 by significantly increasing funding for county eligibility of Medi-Cal and CalFresh. This includes 2026-27 investments of $139.6 million for Medi-Cal and $178 million for CalFresh above the May Revision, as well as ongoing increased investments.
  • It does not include any funding for county indigent care programs (or to provide coverage to this population in other ways), or funding to support public hospitals or county behavioral health programs.
• Cost-shifts: The Senate’s budget proposal rejects the following May Revision proposals that would shift costs for delivering state services to counties:
  • In-Home Supportive Services – The Governor’s Budget proposed to shift costs for IHSS hours per case growth to counties, estimated to start at $360.6 million in 2027-28. The Senate’s action rejects this proposal and keeps county costs consistent with current law.
  • Mobile crisis units for Californians in mental distress – Currently, mobile crisis services are a Medi-Cal benefit statewide, with the state providing the non-federal share of funding. The Governor’s Budget proposed to make Medi-Cal mobile crisis a county-optional benefit. Mobile crisis services would only be available if a county opted to provide the non-federal share of cost. The Senate budget rejects this proposal.
• Homeless Housing, Assistance and Prevention (HHAP) – The Senate budget would provide $1 billion for Round 7 of HHAP in 2026-27, up from the $500 million proposed by the Governor. In addition, the Senate indicated their intent to adopt trailer bill language to streamline the distribution of this funding by September 1, 2026 and include a commitment to fund Round 8 of the program.
• Public Safety: The Senate’s budget proposal includes one-time funding for the following ongoing needs:
  • Proposition 36 implementation – $100 million
  • Victims of Crime Act – $50 million

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