Once again, our state’s supermajority is making major financial decisions in the dark. This time, taking out a $3.44 billion loan to cover a massive gap in the budget largely due to the expansion of Medical to undocumented adults. This is a financial mess that leaves taxpayers on the hook. $3.44 billion loan is a far too large a sum to simply pass through with virtually no detail. A public hearing should be required to discuss and vote on this loan.
Here are some news articles related to the issue.
CalMatters: It’s costing California more than expected to provide immigrant health care. Is coverage at risk?
Sen. Roger Niello, a long-time critic of the state’s closed-door budgeting process, which is typically hashed out between Democratic leaders and the governor, acknowledged that other factors like senior enrollment and high drug costs could be contributing to the high expenses. He said Republicans are worried about increasing spending on immigrant health care.
The Republican from Roseville criticized the lack of transparency from Newsom’s finance department.
“The completely opaque nature of the request, which says nothing about any of that, is entirely inappropriate,” Niello said.
Politico: California lawmakers demand answers on Medicaid shortfall
But the news Wednesday of the shortfall prompted calls from both Democratic and Republican lawmakers for more information on how big the problem is and where the extra costs are coming from.
“There are all these issues that I’m willing to admit are part of it, but we won’t know, the citizens won’t know, unless we have a [budget] hearing on this,” said Republican state Sen. Roger Niello.
Sacramento Bee: California Republican lawmakers raise questions about $3.4B loan to bail out Medi-Cal
Fox 40: Gov. Newsom announces $3.4 billion loan to fund Medi-Cal amid concerns over funds for undocumented
CalMatters WhatMatters: CA borrows $3.4B to cover Medi-Cal budget gap
Sen. Roger Niello, a Roseville Republican and vice chairperson of the budget committee, said that “the completely opaque nature of the request … is entirely inappropriate.”
Quote of the Day - “So you folks think this is news? This is standard operating budget procedure by the Democratic supermajority. They do everything in the dark.” — State Sen. Roger Niello, R-Roseville, on the $3.44 billion loan given to the Department of Health Care Services to pay for unexpectedly high Medi-Cal costs.