Home » Blog » Outlines of the Budget Compromise

Outlines of the Budget Compromise

1. Governor Brown’s economic estimate

The Budget will be based on Governor Brown’s economic estimates of $96 billion in General Fund revenues, despite the Legislative Analyst’s Office projection that revenues would be $3 billion higher.

 

2. Governor Brown’s school allocation

Per pupil grants would be increased to their 2007 (pre-recession levels) plus inflation. Categorical grants would be eliminated. Districts with at least 55% of their students who are poor or English language learners would receive an additional 20% above their base grants.

 

3. ACA expansion of Medicaid for parents and medically indigent adults

  • Medicaid will be expanded for the parents and medically indigent adults with incomes up to 138% of federal poverty level.
    • County realignment funds will be reduced by up to $300 million in 2014 and up to $1.1 billion in future years depending on the experience of Medicaid expansion in reducing county indigent health expenditures.
    • Counties and advocates are concerned that the proposal cuts too deeply into county public health programs and county care for the remaining uninsured.
  • Covered California (rather than Medi-Cal) will cover new legal permanent residents (MIA category) with incomes between 100% and 133% of the FPL with premium assistance used to wrap-around for any benefit and out of pocket expenditure differences. Coverage for pregnant women with incomes up to 200% of FPL will expand for US citizens and legal permanent residents.
  • Medi-Cal application assitors will be reimbursed using a $26 million match from The California Endowment.

 

4. Restoration of some adult dental care under Medi-Cal

Full dentures and preventive care would be restored for adults beginning in May 2014 at a cost of $16 million.

 

5. Mental health augmentation

Mental health and substance abuse treatment services will be upgraded so they are comparable to the Kaiser small group plan — $67 million in state General Funds, $93 million in federal match.

Competitive grants for effective outpatient mental health stabilization in the amount of $206 million ($142 million state General Fund).

 

6. College student aid

A scholarship program to offset up to 40% of tuition and fees for families with incomes under $150,000 annually at the state’s public universities and community colleges beginning in 2014-15. Cost capped at $107 million in year 1, growing to $305 million in year 4.