Sacramento, California (AP) – California is faced with a deficit of $ 12 billion that Governor Gavin Newsom wants to close by joining the registration for a health care program for immigrants living in California without legal status.
Newsom announced the deficit and his plans to cover him on Wednesday when he described his state expenditure plan for almost $ 322 billion for the next fiscal year.
Beyond the MEDICAIDIDS expenses higher than MEDICAID, Newsom, said that the deficit is due to a large economic uncertainty, including constantly evolving federal tariff policies and a volatile stock market. California depends strongly on the income of a capital gains tax.
Newsom, a Democrat, launched its budgetary presentation by highlighting California’s contributions to the American and global economy and by blaming President Donald Trump’s economic policies, who, he said, could reduce state revenues by $ 16 billion in the coming years.
“California is in fact in fact,” he said. “We have a president who was reckless in terms of assault on these growth engines.”
He now opens up budgetary negotiations with legislators and we do not know how the Democrats who control the Legislative Assembly will react to his freezed medi-calm registration plan for certain immigrants. A final budget proposal must be signed by June. California’s budget is by far the most important among states.
Immigrant health care freezing
His decision highlights Newsom’s struggle to protect his liberal policy priorities against budgetary challenges during his last years of work and, as he weighs his next political move, which could include a presidential race.
Immigration has become a politically powerful question on a national level. According to a AP-Noc survey Led in April. Meanwhile, the Republicans in Congress have threatened to reduce Medicaid money For states that illegally register immigrants living in the country.
Gel does not mean that California withdraws from its support for immigrants, said Newsom.
“No state has made only the state of California, no state will continue to do more than the state of California in the long term. And this is a point of pride,” he said.
California was among one of the first states To extend free health benefits in health care For all poor adults, whatever their immigration status last year, an ambitious plan presented by Newsom to help the most populous state in the country closer to the objective of universal health care. But the cost cost $ 2.7 billion more than the administration had not planned it.
In March, Newsom suggested that he did not plan to retreat the health benefits for immigrants when the state was struggling with A shortfall of $ 6.2 billion Medicaid. He has also repeatedly defended the expansion, saying that it saves money in the long -term state. The program is funded by the State and does not use federal dollars.
As part of the Newsom plan, low-income adults without legal status will no longer be eligible to apply for Medi-Cal, the state Medicaid program, from 2026. Those who are already registered will not be launched from their plans, and the changes will not have an impact on children. Newsom did not say how long the frost lasts.
From 2027, adults with “unsatisfactory immigration status” on Medi-Cal will also have to pay a monthly bonus of $ 100. The Governor’s office said that this was in accordance with the average cost paid by those who are on health plans subsidized on the California market. There is no premium for most people currently on Medi-Cal.
“We think people should have a skin in the game when it comes to contributions,” said Newsom.
The Newsom office estimated that changes will save $ 5.4 billion by 2028-2029.
Medi-cali expansion, combined with other factors such as the increase in pharmacy costs and larger registrations by the elderly, forced California to borrow and Allow new financing To connect the hole several billion earlier this year. California provides free health care to more than a third of its 39 million people.
Newsom’s proposals go against the commitment that the State has made to the community of immigrants, said Masih Fouladi, Executive Director of California Immigrant Policy Center.
“Questions about the practical aspect of the program are not even something we want to entertain,” he said. “The proposal simply does not correspond to our values as a state.”
Newsom also proposed to eliminate state health care coverage for certain weight loss drugs from January 2026, which would save around $ 85 million for the next fiscal year and $ 680 million by the year 2028-29.
Environmental expenditure
Newsom wants to reautorize the state cap and exchange program until 2045. The program aims to reduce emissions from industrial sources over time thanks to market -based mechanisms, and its expiration shoot in 2030.
The money generated by the credits auction necessary to pollute enters a fund that legislators operate for expenses related to the climate and the high -speed rail project of the State.
Newsom proposed to type $ 1.5 billion from this fund for the state fire service. He said the change would help ensure that carbon issuers are helping to finance the state’s response to the fires intensified by climate change.
Its proposal would also guarantee $ 1 billion per year for the high -speed high -speed high speed rail project. The project now receives 25% of the greenhouse gas reduction fund, which ends up being a little more or a little less than a billion per year depending on the year.
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Associated Press journalist Sophie Austin contributed.