Public testifies as Assembly subcommittee weighs May Revision cuts to California Reducing Disparities Project and Office of Health Equity

The Assembly Budget Subcommittee No. 1 on Health heard extensive public opposition Wednesday after the governor's May Revision proposed reverting roughly $15,800,000 in general‑fund appropriations for the California Reducing Disparities Project (CRDP) and other Office of Health Equity programs administered by the California Department of Public Health (CDPH).

Assemblymember Reggie Zuber, who raised the issue at the start of the CDPH panel, said the 2025 May Revision appears to eliminate funding that had been authorized in prior budgets and that many CRDP grantees remain mid‑contract. "It looks like that cut was left out of the programmatic documentation," Zuber said, urging staff and the administration to clarify whether the reversion is intentional.

The CRDP supports community‑defined, culturally responsive prevention and early‑intervention mental‑health services through grants to grassroots organizations serving African American, Latino/Latinx, Asian/Pacific Islander, Native American and LGBTQ+ communities. CDPH officials told the committee the program supported approximately 33 grants and nine contracts; the May Revision lists the CRDP reversion among several one‑time reversions the administration identified to reduce the state's projected shortfall.

Why it matters: CRDP grantees and researchers told the committee the program is evidence‑based and still under evaluation, and that an abrupt reversion would interrupt services and evaluations now underway. Multiple community leaders described the grant dollars as supporting mental‑health access in communities that otherwise lack culturally specific providers.

At the hearing, representatives from CRDP grantees said the cut would end programs that have enrolled thousands of participants, risked layoffs and undercut ongoing evaluations. Rachelle Chambers, a commissioner of the Behavioral Health Services Oversight and Accountability Commission, told the committee that her niece relies on a local full‑service partnership funded by the commission and that peer respite programs and early childhood grants would be immediately affected. "This money, if cut, will impact my niece who's right now in Riverside County FSP program," Chambers said. "The commission is meeting needs with maternal health that are imminent right now."

CDPH presented the May Revision summary and said the proposed reversions include roughly $15.8 million from CRDP, plus smaller reversions linked to LGBTQ foster‑youth services, workforce development, hepatitis C prevention and other one‑time items. CDPH characterized the package as part of the administration's broader effort to identify one‑time savings to close a multi‑billion‑dollar budget gap.

Administration and fiscal staff: Department of Finance and the Legislative Analyst's Office (LAO) were both on the record at the hearing. The LAO said it is still awaiting backup documentation on the Behavioral Health Services Fund and other accounts and could not fully evaluate the administration's proposals without that detail. Department of Finance said the May Revision is a starting point and invited the Legislature to propose alternatives.

Public comment: Dozens of representatives from community‑based grantees, academic evaluators and public‑health advocates spoke against the reversion. Testimony came from CRDP grantees, academic evaluators who said statewide cost‑benefit analyses show positive returns, tribal health organizations, LGBTQ and reproductive‑health providers, and multiple local community organizations from across California. Several speakers, including evaluators, asked the committee to preserve the last year of funding so assessments would be completed and services would not be interrupted.

Committee response and next steps: Chair Addis closed the CDPH item by noting the CRDP reversion comprises a tiny fraction of the total budget shortfall — she said the cut represents about 0.13 percent of the state's projected gap — and urged Department of Finance and CDPH to return with alternative proposals that would reduce harm to programs and communities. The subcommittee did not take a vote; members requested further fiscal detail and impact estimates from CDPH before the Legislature considers final budget action.

Clarifying details: CDPH told the committee CRDP supported roughly 33 grants and 9 contracts; the May Revision lists a $15,800,000 reversion for CRDP. CDPH also identified additional, smaller reversions affecting Office of Health Equity programs (amounts described in CDPH testimony). Several gender‑health and reproductive‑justice grants were cited by grantees as at risk, including a Reproductive Justice fund that grantees said had included Planned Parenthood affiliates.

Ending note: Subcommittee members and public commenters urged the administration to identify alternate solutions that would preserve continuity for the programs while addressing the state's fiscal shortfall. The committee requested written impact estimates from CDPH on jobs, client caseloads and the evaluation timeline.