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May revision would eliminate most Prop 56 supplemental payments for family planning and women’s health; LAO warns of lost federal match
Summary
The governor’s May revision would eliminate supplemental payments funded through Proposition 56 for family planning, women’s health and dental and redirect those Prop 56 dollars, the administration says, to physician base rate increases and budget relief.
The Assembly's health budget subcommittee reviewed the governor’s proposal to change how Proposition 56 revenue is used. Proposition 56 revenue (a tobacco tax measure) historically funded supplemental payments to providers for dental, family planning and other health services. The administration proposes stopping supplemental payments for dental and family planning and redirecting Prop 56 funds to support base physician rate increases and general‑fund savings.
Why it matters
Proposition 56 revenues have declined over time as tobacco use decreased; the administration told the committee that continuing to use state general fund to backfill Prop 56 supplemental payments is not sustainable. The Legislative Analyst’s Office (LAO) warned eliminating family planning supplemental payments would cause the state to forego a higher federal match — family planning…
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