LEGISLATION COMMITTEE
Meeting Date: August 24, 2026
Subject: State Budget Updates of Interest to Contra Costa County
Submitted For: Legislation Committee
Department: County Administrator's Office
Referral Name: State Budget 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:
During this item, the County's state advocates will provide an update on various legislative and budgetary matters of interest.
FY26-27 State Budget
On Friday, June 26, the Administration and Legislature announced that they had reached a three-party agreement between the Assembly, Senate, an Administration on the FY26-27 state budget. The agreement purports to be balanced for the next two fiscal years and prioritizes building reserves.
During this budget cycle, Contra Costa County has advocated for resources related to H.R. 1 needs, IHSS underfunding, Homeless Housing, Assistance, and Prevention (HHAP) and homelessness underfunding, Prop. 36 underfunding, the Sustainable Aviation Fuel Tax Credit, climate bond allocations, and other key issues.
H.R. 1 has been the most significant issue this budget cycle for counties, shifting billions in safety net costs and introducing new eligibility requirements for Medi-Cal and CalFresh. While some funding was secured, major gaps remain, especially for indigent care and behavioral health.
For H.R. 1, some of the key issues are summarized below:
* Indigent Care/Emergency Only Medi-Cal Program: No funding was provided for counties to cover indigent medical care for those losing health coverage due to H.R. 1, nor for an alternative emergency-only program.
* Public Hospitals: $250 million in General Fund grants to support public hospitals, as proposed in the Legislative Budget Plan. ...
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