PPIC Releases Report on Funding of the Medi-Cal Program

The Public Policy Institute of California (PPIC) recently released a report detailing Medi-Cal financing and its impact on the state budget. According to the report, state spending on Medi-Cal has outpaced growth in state revenues, and Medi-Cal currently accounts for 15 percent of total General Fund expenditures. The PPIC report explores additional revenue-generating options including establishing a tax on snack foods, which Assembly Member Cristina Garcia is aiming to do with AB 274. Other options explored include expanding taxes on products such as tobacco, alcohol, and cannabis, adding medical provider fees and taxes, and revisiting the state-local fiscal relationship. The full report is available here.