Transcription
In state matters, just hours ago, health care advocates gathered outside the state capitol. They're celebrating a new plan by Senate Democrats. It would generate new revenue to help with the cost of health care and social services. ABC 10 political reporter Jenny Hu is here now with a closer look.
Well, Chris, all of this is in response to federal cuts expected to hit at the start of 2027. When it comes to budgets, keep in mind the Senate has its proposal, the Assembly has its own, and the governor has his as well. His initial proposal came down in January. The May budget revise is set for next week, and the final budget must be approved by June.
"Disabled Californians are not disposable. Our lives matter."
Thursday morning, health care and disability rights advocates rallied behind a budget proposal by Senate Democrats, one that seeks to offset an anticipated $1 trillion cut to Medicaid over the next 10 years under the so-called Big Beautiful Bill. While we cannot blame the California legislature or governor for these massive cuts to healthcare, it is now up to them to protect disabled Californians and others in our community. Multiple reports show as a result of the cuts and new eligibility requirements, 2 to 3 million Californians could lose Medi-Cal, Medicaid for Californians coverage. These are huge corporations who don't provide healthcare to their workers and instead have them go on Medi-Cal and food stamps using our taxpayer dollars.
Response: Senate Democrats' proposed 2026 to 2027 budget plan seeks to implement a fair share contribution plan that would require the state's top 1 to 2% of corporations that don't pay for employee healthcare coverage to instead pay to the state their share of medical coverage for employees. That could raise $5 to $8 billion in additional revenue, Senate Democrats say.
"I need my colleagues on the assembly to hear you loud and clear. I need my governor to hear you loud and clear that we need to find revenues for this because we are not going to cut our way out of this."
Now, a push for the California Assembly and Governor Gavin Newsom to do the same. We did not hear back from Newsom's office on multiple requests for comment and on whether we can expect any updates in his revised May budget. And Assembly Democrats say if Congress doesn't roll back those federal cuts, they'd be open to considering the Senate proposal.
"You don't know what it's like to apply for these programs. You don't know what it's like to be born disabled and every year have to defend your right to get the same care that you got last year and the year before that and the year before that. It is frustrating."
In opposition, Republican state senator Roger Neillo, vice chair of the Senate Budget Committee, says, quote, "Increasing taxes will only further fracture California's long-term budget stability as families and businesses inevitably adjust and pull back." He added, "Really look at not just one-time solutions, but long-term sustainable revenue solutions."
And speaking of one-time solutions, there is also the proposed billionaires' tax ballot initiative which seeks to make up for federal funding cuts via a one-time tax on California billionaires.
So much more to keep track of, Chris. Indeed, Jenny, we thank you.