Legislative Budget Plan Sent to Governor as Negotiations Continue. Make Your Voice Heard!

The Legislature has been hard at work to pass their version of a balanced budget by the June 15 constitutional deadline. AB 109 (Gabriel), delivered to the Governor late Monday evening, is not the final budget that will be signed into law. Rather, it is a placeholder that allows the Legislature to meet its constitutional requirement and continue negotiations with the Governor to reach a three-party agreement. The final enacted budget, effective July 1, will consist of AB 109 and accompanying trailer bills and “budget bill(s) junior”  that amend the Legislature’s budget plan to reflect the final three-party agreement.  

The Legislative Budget Plan reflects a clear understanding of the challenges counties are facing as a result of H.R. 1. The proposed investments to public hospitals, eligibility services, and alternatives to indigent care would help protect healthcare access and preserve the services residents rely on. While the budget is expected to be further amended to incorporate the Governor’s priorities, the Legislative agreement takes a step in the right direction, protecting counties’ safety net and fiscal health. Read CSAC’s press release on the Legislative Budget Agreement here. 

Here’s a look at where this latest spending plan stands on key county priorities: 

• H.R. 1: The Legislature’s budget plan includes approximately $835 million in the upcoming fiscal year to address the damage already set in motion by H.R. 1. This includes: 
  • $125 million for an emergency-only alternative to indigent care that would provide health care services for individuals who lose full-scope Medi-Cal eligibility due to H.R. 1 work requirements.
  • $250 million to support California’s public hospital systems facing increased uncompensated care and financial pressures. 
  • $459 million for county eligibility of Medi-Cal and CalFresh to help eligible Californians maintain access to health care and food assistance. 

• In-Home Supportive Services (IHSS): The Legislature rejected the Governor’s proposal to shift costs to counties and undermine the existing fiscal structure of IHSS, which is estimated to increase county costs by $360.6 million starting in 2027-28 and growing each year. That decision protects older adults and people with disabilities while preventing further strain on county safety net services. 

• Homeless Housing, Assistance and Prevention (HHAP): The Legislature increased funding to $900 million, which will help communities continue making progress on homelessness. It’s critical that the final budget deal build upon local successes by streamlining the distribution of that funding and committing to another round of HHAP in 2027-28. 

• Proposition 36: The Legislature included $50 million in one-time funding for Proposition 36, which voters in all 58 counties approved in 2024. While we appreciate this recognition of local needs, the funding falls far short of what counties need to expand treatment and recovery services. Without sustained investments across all impacted county departments, voter expectations will not be met. 

For more details, read CSAC’s budget advocacy letters to the Governor, Senate, and Assembly available on our website.  

The clock is ticking to ensure our feedback is considered. Counties are encouraged to submit budget advocacy letters and contact lawmakers by Friday, June 19 and urge them to: 

• Protect county safety net services Californians rely on (Indigent Care, Public Hospital Systems, and County Workforce Eligibility). 
• Sustain investments and build on progress achieved. 
• Uphold state backfill commitments. 
• Reject proposals that shift costs to counties. 

Without additional state support, counties face increased pressure to maintain essential services that Californians rely on. Budget advocacy letter templates are available here.  

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Please do not hesitate to contact CSAC legislative affairs staff with questions about specific policy areas.