California Special Session

Governor Jerry Brown (D-CA) has called the legislature for a special session on Friday, June 19th.

Caltrans, the state’s Transportation Department, is currently underfunded and the Governor is calling the legislature back to adopt a permanent fix. The current fuel excise tax revenues provide $2.3 billion to Caltrans to make repairs, whereas the agency says they need at least $5.7 billion to make necessary repairs. The Governor is asking the legislature to permanently adopt “pay-as-you-go” funding to replace the current method which sees the California General Fund provide assistance for the funding shortage. The full text of the Governor’s proclamation can be found here.

After the passage of the Affordable Care Act, California chose to expand its Medicaid program, Medi-Cal. California pays for this through a combination of a tax on managed care plans whose revenues are matched by the federal government. New federal regulations require that this tax be broad-based and not limited to Medi-Cal plans. In the special session, the legislature will look to enact permanent funding for Medi-Cal, providing at least $1.1 billion annually. The full text of the Governor’s proclamation can be found here.