LEGISLATION COMMITTEE
Meeting Date: May 22, 2026
Subject: State Budget Updates of Interest to Contra Costa County
Submitted For: Legislation Committee
Department: County Administrator’s Office
Referral Name: Federal Update
Presenter: M. Rubalcava and G. Neill, Nielsen Merksamer
Contact: E. Struthers (925) 655-2045
Referral History:
The Legislation Committee regularly receives reports on the State Budget and bills of interest to the County and provides direction and/or input to staff and the County’s state lobbyists.
Referral Update:
The California State Legislature is developing the FY26-27 budget, which is due to the Governor by June 15.
The Governor released his May Revision on May 14, 2026. Despite better revenue projections than anticipated in January, the Governor’s May revise did not include funding for Counties related to H.R. 1 impacts, such as for (1) SNAP (CalFresh) and Medicaid (Medi-Cal) eligibility/administration, (2) public hospital funding, or (3) indigent care.
California is one of ten states that administers SNAP locally, and is one of about half of states that administer Medicaid locally. This means that federal impacts are disproportionately passed along to California county governments, impacting general funds and the services that rely upon those funding sources. It also disproportionately impacts Contra Costa, as the operator of a health plan, public hospital, and nine community clinics.
The California State Association of Counties (CSAC) has been working with partner organizations, including the Urban Counties of California (UCC), California Welfare Directors Association (CWDA) and the California Hospital Association (CAPH), and others on a budget request. The request has evolved to include an indigent care alternative, which would allow people without insurance to access care using a fee-for-service reimbursement model.
Without funding to implement these programs, state requirements fall to County governments to implement, effectively as an unfunded mandate. Additionally, there is strain on the budget with many programs are currently underfunded or unfunded, such Proposition 36, In Home Supportive Services (IHSS), and Homeless Housing, Assistance and Prevention (HHAP) Program, among other concerns.
In March, Contra Costa County submitted budget letters related to H.R. 1 needs, IHSS underfunding, Prop. 26 underfunding, and other key issues. However, with these issues being left unaddressed, staff recommends that additional request letters are sent. Staff also recommends that the Committee consider supporting the indigent care alternative proposal.
During this item, the County’s state advocates will provide an update on various legislative and budgetary matters of interest.
Recommendation(s)/Next Step(s):
RECEIVE the report and provide direction and/or input to County staff and the County’s state advocates, as needed.
Fiscal Impact (if any):
None.