CSAC Statement on governor’s budget proposal

Sacramento, CA —California State Association of Counties (CSAC) CEO Graham Knaus issued the following statement Friday after the California Department of Finance released the governor’s 2026 budget proposal:

“This budget proposal does not in any way acknowledge the impact of H.R. 1 on counties and our local communities. If the state doesn’t step up, communities across California will crumble.”

Background/Context:

H.R. 1’s cost to counties:

• What we know so far is billions of dollars each year in higher county costs to Medi-Cal, CalFresh and indigent care.
• And there’s so much more we don’t know yet, so that figure could go up even more.
• By comparison, the LAO has estimated $1.3 billion in higher Medi-Cal and CalFresh costs to the state for FY 26-27.

Counties are the state’s primary service provider:

• Counties are mandated to deliver state services on the ground in every California community, including state-mandated indigent care.
• Counties cannot backfill federal funding alone.
• Without sufficient funding and flexibility, counties cannot provide those services.