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Federal and state budget proposals could shift costs to counties, Solano lobbyists tell supervisors
Summary
Federal appropriations and reconciliation proposals and a rapidly changing California state budget prompted Solano County's federal and state legislative advocates to warn of potential Medicaid/CalFresh cost shifts and of state trailer bills that would affect water policy and projects in the Delta.
Federal and state budget developments that emerged in recent weeks could shift costs and responsibilities to counties, Solano County’s federal and state legislative representatives told the Board of Supervisors on Tuesday.
Federal update: Paragon government-relations representatives provided a high-level overview of federal activity. Hassan and Tom (Paragon) said President’s ‘‘skinny’’ budget and subsequent Republican-led appropriations proposals are starting the annual funding process in the U.S. Congress but are unlikely to survive in their present form.
On reconciliation, Paragon and team members said the House-passed fiscal package would extend tax cuts and pay for them with deep cuts to Medicaid (Medi-Cal) and to SNAP/CalFresh. Tom told supervisors that Congressional Budget Office estimates suggest 1–2 million Californians could lose Medicaid coverage under the House proposal’s work‑requirement paperwork changes, producing roughly $10 billion in annual state Medicaid funding losses that would shift costs to state and local providers.
“We may indeed see that text late this week or early next,” a Paragon representative said of proposed Senate changes to the House reconciliation text, and added the schedule to complete reconciliation by July 4 remains ambitious.
The firm also discussed permitting for the proposed Delta conveyance project. Joe from Paragon said the U.S. Army Corps’ draft environmental impact statement (EIS) does not analyze operational impacts, and Delta-area stakeholders are urging the Corps to perform fuller NEPA review. Paragon said it is monitoring whether the U.S. EPA or Corps headquarters will elevate or review a Clean Water Act Section 404 permit decision.
State update: Karen Lang (state legislative advocate) briefed the board on fast-moving activity in Sacramento. Lang said the governor’s May Revision included proposals to address a large projected shortfall, then reported after the meeting that legislative leaders had agreed on a budget framework. The board heard two points of immediate concern:
- Delta trailer bills: Lang said the governor included draft trailer bills that would change water-quality and permitting rules affecting the Delta conveyance project; local Delta representatives and the legislative analyst objected and the Senate and Assembly leadership’s framework did not include those trailer bills.
- Health and safety and social-service proposals: The governor’s initial proposals included policies that the legislature modified. Lang said the two‑house framework had softened some of the governor’s most severe health‑care cuts and had allocated less than legislative advocates requested for homelessness programs. She warned that federal budget changes could force further state revisions.
Supervisors’ concerns: Chair Mashburn and other board members raised concerns about potential federal shifts that would push Medicaid and SNAP costs to counties. Supervisors also praised the county’s federal delegation and urged continued advocacy on the Delta permitting and on actions that would create cost shifts for counties.
Next steps: County staff and advocates said they will monitor appropriations and reconciliation language in Congress, work with the county’s federal delegation on Delta permitting and continue to communicate developments to the board.
