Published
3 years agoon
SACRAMENTO — California is bracing for a much smaller budget surplus next year because of its ongoing feud with the Trump administration about a tax involving Medicaid, the state’s chief budget writer said Monday.
California is projected to have a $7 billion surplus, with $3 billion of it available to spend on recurring programs.
But nearly $2 billion of that amount would only come if California is allowed to keep in place a tax on the companies that manage its Medicaid program. California needs permission from the federal government to do that, and state lawmakers are not sure they will get it.
Democratic state Assemblyman Phil Ting, chairman of the committee that writes the Assembly version of the budget, said lawmakers are planning on Trump not approving the tax, meaning the surplus would drop to $4 billion, of which $1 billion would be available to spend on recurring programs.
Preparing to spend that money while facing such uncertainty “wouldn’t be the right thing to do,” Ting said.
“Every time there is an opportunity to fight with California, the Trump administration has really taken up that mantel and really tried at every turn to thwart many of our key policy agendas,” Ting said.
California Lawmakers OK Potential Fines for High Gas Prices
Who Buys Electric Cars in California—and Who Doesn’t?
Much of Drought-Plagued West Coast Faces Salmon Fishing Ban
A Boom for Concealed Carry Classes, but Long Waits for Permits
It’s Raining Now, but How Can California Boost Its Water Supply Later?
With California Oil Production at Risk, Referendum Gives Voters a Say