On January 10, 2025, California Governor Gavin Newsom's administration held a meeting to discuss the 2025-26 State Budget Proposal, focusing on various funding allocations and their implications for state programs. The discussions highlighted several key areas of concern, particularly regarding healthcare funding, local journalism support, and the impact of recent legislative changes.

One of the primary topics was the ongoing assessment of the state budget's impact due to potential changes in federal healthcare funding. Officials emphasized the need for caution in speculating about financial outcomes until more concrete information is available. The Department of Health Care Services is actively evaluating various scenarios, but officials refrained from providing specific figures, indicating that a clearer understanding of future challenges is necessary before making predictions.

The meeting also addressed the BH Connect program, which recently received federal approval. Questions arose about the funding breakdown between federal and state contributions for the program's $8 million budget. While officials could not provide immediate figures, they committed to obtaining this information. Concerns were raised about how potential shifts in the federal administration might affect this funding.

Another significant discussion point was the Managed Care Organization (MCO) tax and its implications under Proposition 35. Officials clarified that recent amendments to the tax revenue are not subject to Prop 35, but they did not have specific dollar amounts available during the meeting. The conversation also touched on how Prop 35 has affected previous investments in continuous eligibility funding for children, with officials promising to clarify whether the remaining $3 billion allocated for public health emergency unwinding includes this funding.

Additionally, the meeting highlighted Governor Newsom's commitment to supporting local journalism, with a proposed $30 million allocation in the budget. This funding stems from an agreement with Google and aims to bolster journalism in California. However, details regarding the distribution and guidelines for this funding remain under discussion, with stakeholders, including journalists' unions and academic institutions, expected to play a role in shaping the final framework.

In conclusion, the meeting underscored the complexities of the upcoming state budget, particularly in healthcare and journalism funding. As officials continue to gather data and assess the implications of recent legislative changes, the community will be watching closely for updates on how these decisions will impact vital services and local media in California.