Original Post by
The Washington Examiner
Gov. Gavin Newsom's (D-CA) Department of Finance notified lawmakers on Wednesday that it needs another $3.4 billion to cover the costs associated with the state's Medicaid program, which includes providing health insurance to illegal immigrants.
The one-page letter, which came after Newsom told lawmakers they underestimated the costs, did not specify why Medi-Cal needs the money.
The $3.4 billion loan is the maximum the state can borrow and is only expected to last until the end of the month, Department of Finance spokesman H.D. Palmer said.
The state initially earmarked $3 billion per year for the cause, but that estimation fell well below reality. The current budget proposal estimates that it will cost the state $8.4 billion to cover undocumented immigrants in 2024-2025 and $7.4 billion in 2025-2026.
"This is a disturbing pattern — Newsom creates a budget that's laughably detached from reality, spends way more than he has, then puts his hand out for more when the bill comes due," California State Assembly Leader James Gallagher, a Republican, told the Washington Examiner. "It's how we went from a $100 billion surplus to a massive deficit in barely a year. The cost of these benefits to illegal immigrants is $9.5 billion — that is badly needed money that could go toward helping our citizens."
Complete Article
The Washington Examiner
Gov. Gavin Newsom's (D-CA) Department of Finance notified lawmakers on Wednesday that it needs another $3.4 billion to cover the costs associated with the state's Medicaid program, which includes providing health insurance to illegal immigrants.
The one-page letter, which came after Newsom told lawmakers they underestimated the costs, did not specify why Medi-Cal needs the money.
The $3.4 billion loan is the maximum the state can borrow and is only expected to last until the end of the month, Department of Finance spokesman H.D. Palmer said.
The state initially earmarked $3 billion per year for the cause, but that estimation fell well below reality. The current budget proposal estimates that it will cost the state $8.4 billion to cover undocumented immigrants in 2024-2025 and $7.4 billion in 2025-2026.
"This is a disturbing pattern — Newsom creates a budget that's laughably detached from reality, spends way more than he has, then puts his hand out for more when the bill comes due," California State Assembly Leader James Gallagher, a Republican, told the Washington Examiner. "It's how we went from a $100 billion surplus to a massive deficit in barely a year. The cost of these benefits to illegal immigrants is $9.5 billion — that is badly needed money that could go toward helping our citizens."
Complete Article