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Gov. Gavin Newsom’s drive to the political center reached a jarring speed bump. He spends beyond undocumented immigrant healthcare budgets.
Let’s take this into consideration:
It is likely that Newsom has repositioned himself to run for president in 2028. He doesn’t seem like a wild liberal in California, but rather a wise moderate who can get votes in swing states.
He hopes to be viewed and respected as presidential prospects, at least nationwide.
But the two biggest policy issues that Democrats held back last year were inflation caused by federal overexpenditure, caused by unsecured southern borders that allowed countless migrants to flow into the country illegally. Maga Republicans said one of the attractions to immigration is the bounty of giveaways from liberal states such as California.
“Kamala rolls out the red carpet for illegals” was a banner for a Donald Trump campaign’s work that attacks Democrat Kamala Harris, whose political roots in California have become vulnerable.
In fact, Newsom boasted that California is a pioneer of the nation by becoming the first state to provide government healthcare to all low-income people, regardless of their immigration status.
So we can only speculate how this will play with voters in Purple State across America. My speculation: It would play like a ball player who was kicked out of the base.
It fits well with the stereotypes of many Americans of modern California governors: radical, left-handed, leaders of the out-of-control country.
Of course, Newsom could be politically rescued by President Trump and the Republican Congress. You can foolishly bang Medicaid healthcare for the poor and reduce Medicare for the elderly to provide tax cuts to the wealthiest Americans. It could mask Medi-Cal spending for undocumented immigrants.
Medi-Cal is the federal Medicaid version. It provides health care to approximately 15 million Californians, 38% of the state’s population and half of the child.
California began to step-by-step in Medi-Cal for undocumented immigration ten years ago during the then Gov. Jerry Brown has signed a law covering children. Under Newsom, seniors were the next to gain coverage. Last year, it included undocumented people of all ages (an estimated 1.8 million).
It is not surprising that the state government failed to properly plan for the expansion of MEDI-CAL. Last June, the budget writer fixed the cost at $6.4 billion. By January, MEDI-CAL’s overall costs far exceeded initial forecasts, with Newsom borrowing $3.4 billion to pay invoices until this month.
Recently, the governor asked Congress for another $2.8 billion to cover Medi-Cal spending through June. Of the additional costs totalling $6.2 billion, the administration refused to disclose how much it is for undocumented healthcare.
The Newsom administration has provided some excuses for the shortage. More people signed up for Medi-Cal than they expected. Pharmacy costs have risen. Medical expenses have generally risen nationwide. But it’s really not persuasive. Experts should have predicted.
There is always a rationale for red ink spending in Sacramento.
I think the governor, and perhaps Congress, last year, cooked the numbers to show a “balanced” budget on paper. Shock, shock. It’s an old custom of the state capitol.
“They always cook numbers,” says former council president and Los Angeles mayor Antonio Villaraigosa.
“every [state] The finances do that. However, there are restrictions. At the end of the day you can cook so much that they aren’t real. ”
Therefore, Newsom and Congress are faced with the tough task of creating budgets for the upcoming fiscal year, which begins on July 1st.
They were able to cut down Medi-Cal services for all beneficiaries. Alternatively, care can be reduced just for undocumented immigrants. It doesn’t seem like Democrats would accept it.
They were able to strengthen eligibility and reduce the number of beneficiaries. They were able to add an additional self-pay. Or pair back provider reimbursement rates – because they are already so low, many doctors are refusing to accept MEDI-CAL patients. Forget it.
They were able to cut other state programs to help pay for Medi-Cal – perhaps a logical move, but it would evoke a scream.
Or they can raise taxes. Non-starter.
There is always a budget gimmick – borrowing, backfilling from other funds, kicking the road.
What they most likely do: Repeat the numbers.
Medi-Cal funding is problematic because of how it works. The federal government is consistent with state spending for statutory residents, but not for undocumented people except in emergencies. The state is primarily naturally present and provides care to undocumented patients.
For around 13 million people, Newsom and Congress are now at the mercy of Trump and the GOP-controlled Congress.
Moving towards the Centre, Newsom avoided many political grief last year by rejecting three bills passed by Congress to help undocumented immigrants.
Most controversial is that if they were first-time home buyers they would have allowed them to apply for an interest-free mortgage of up to $150,000. The existing pot didn’t even have enough money to support the citizens, Newsom pointed out in his rejection message.
The second denial bill would have paved the way for undocumented workers to receive unemployment benefits. The third would have required public universities and community colleges to hire undocumented students for campus work.
If Newsom signed these measures, he would certainly have heard about it loudly on the presidential election trajectory.
Now, Trump and Congress have been able to bash Medicaid and give Newsom a solid rationale to cut back on how to return to healthcare for undocumented Californians. It’s a poor and harmful policy.
But no matter what happens, I hope the governor will use the uncooked numbers this time.
What else should I read?
Must see: Newspaper to ask the California Legislature for another $2.8 billion
Rimes Special: “I hope you’re mad.” California Democrats face voter anger over Trump, Elon Musk
Until next week,
George Skeleton
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