On January 10th, Governor Gavin Newsom released his fiscal year 2019-2020 proposed state budget. In response, CPEHN issued the following statement:

“CPEHN is thrilled to see Governor Newsom recognize that persistent health inequities have plagued communities of color for too long. This Budget proposal acknowledges that California’s communities of color, particularly Black women and children, are experiencing a health crisis. The Governor is proposing historic investments to ensure that ALL Californians are able to access health care and live well. CPEHN has long championed improving the quality of care in Medi-Cal and holding health plans accountable for the care provided to low-include consumers and applauds the Governor’s proposed investment in this area. CPEHN also welcomes the proposed investments that directly target disparities by funding trauma screening, home visitation, behavioral health integration, and the Black Infant Health Program. We look forward to working with the Governor to implement these critical investments.”

The $209 billion spending plan proposes an historic investment in health equity and health care quality, providing millions in funding to tackle disparities in pre-natal and post-partum care, chronic conditions and mental health. The budget also includes new funding to expand access to health care for undocumented young adults and improves affordability assistance in Covered California for low to middle income individuals earning between 250-600% of the Federal Poverty Level ($30,350 and $72,360 for a single individual) by strengthening and expanding subsidies.

CPEHN supports the additional investments proposed by the Newsom Administration that will prioritize the health of our most vulnerable communities. 

Highlights of the FY 2019-2020 Budget:


  • Total Budget: $209 Billion
  • General Fund Spending: $144 Billion
  • Total Spending for Health & Human Services: $158.6 billion
  • Rainy Day Fund: Governor Newsom is proposing to set aside $4.8 billion towards the Rainy-Day Fund, bringing the Fund to $19.4 billion by 2022-23.

Key Items

  • Investment in Health4All ($260 million): The Budget includes additional funds to expand Medi-Cal eligibility to approximately 138,000 undocumented adults aged 19-25 after July 1, 2019. California currently pays for coverage of undocumented children up to age 19.This proposal will ensure continuity of care for young adults transitioning into the workforce. However, the Governor’s proposal fails to include any new funding to expand Medi-Cal coverage to the state’s undocumented adults and seniors.
  • New Funds to Improve Health Care Quality and Address Inequities ($360 million): The Budget acknowledges that California’s communities of color are experiencing a health crisis. The proposal includes $180 million in new Proposition 56 funds (and $180 million in federal matching funds) for value-based payments to encourage Medi-Cal managed care providers to meet goals in critical areas such as pre-natal and post-partum care, management of chronic disease and behavioral health integration. The proposal appears to be aligned with CPEHN’s 2018 sponsored legislation, AB 2275 (Arambula) to create a financial incentive program to improve Medi-Cal quality and reduce disparities.
  • New Funds for Early Developmental Screenings and Trauma Informed Care ($52.5 million):The budget also includes $60 million ($30 million Prop. 56 funds) to provide early developmental screenings for children and $45 million ($22.5 million Prop. 56 funds) for adverse childhood experiences (ACEs) screenings for children and adults in the Medi-Cal program. Studies have found a strong relationship between exposure to ACEs and subsequent negative health behaviors and outcomes later as adults. This new investment will help to improve health outcomes for all Californians.
  • Black Infant Health Program ($7.5 million): The Budget includes additional funds to increase participation in the Black Infant Health Program to improve African-American infant and maternal health through case management services, including home visiting.

For a full list of budget highlights, click here.

CPEHN will continue advocating for investments that prioritize the health of our most vulnerable communities.
For more information about CPEHN’s policy priorities, visit: cpehn.org.


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