Governor Brown Signs $183B Budget

On Tuesday this week, Governor Jerry Brown signed into law a $183 billion ($125 billion General Fund) state budget without issuing any vetoes. The newly-signed budget goes into effect starting July 1, and notably increases spending on Medi-Cal, education, child care, and transportation infrastructure. The budget also provides $1.8 billion to the rainy day fund and despite signing in the largest budget in state history, Governor Brown continued to stress the importance of maintaining fiscal prudence ahead of uncertain financial times.

The new budget provides $60.2 billion for the Health and Human Services Agency and features $711.2 million for new growth in Medi-Cal expenditures and $546 million for supplemental Medi-Cal provider payments in Proposition 56 funding. The budget also includes county mitigation for the IHSS program associated with the end of the Coordinated Care Initiative, restores Medi-Cal optical and dental benefits, and establishes a unified state regulatory system for medicinal and adult-use cannabis. CHEAC’s detailed summary of the cannabis trailer bill can be found here.

A handful of budget trailer bills have been passed by both houses and are now awaiting the Governor’s signature. The Governor’s full budget summary is available here. CHEAC recently included a brief of the budget passed by the Legislature in our weekly update available here.