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CDPH May Revision: reversions, CalRx changes and outcry over proposed cut to disparities program

Senate Budget Subcommittee No. 3 (Health & Human Services) · May 20, 2025
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Summary

CDPH presented technical adjustments, program reversions and trailer‑bill language expanding CalRx authority and changing the community health worker certification requirement. The proposed reversion of funding for the California Reducing Disparities Project drew broad public opposition at the hearing.

The California Department of Public Health outlined a long list of May Revision adjustments: minor estimate changes (ADAP, prenatal and newborn screening, WIC), new or reappropriated one‑time investments, and proposed reversions of previously appropriated but unspent funds.

CDPH said the May Revision would revert roughly $31.7 million of unspent local assistance and state operations funding, including funds previously appropriated for a multi‑year rollout of the California Reducing Disparities Project (CRDP). CDPH officials told the committee that a portion of multi‑year authority remained unspent and, given the overall state deficit, the administration proposed allowing those portions to revert.

CDPH also proposed trailer‑bill language to expand the CalRx authority to buy brand‑name drugs (to address supply disruptions including abortion drugs) and to remove the statutory obligation for HCAI to develop a single statewide certificate program for community health workers; CDPH said stakeholder feedback and reductions in available funding justified a more flexible, locally driven approach to CHW training funds.

Public comment during the hearing was extensive and emphatic. More than 100 individuals and organizations spoke; many were CRDP grantees, community‑based organizations, and clients. Speakers described CRDP as an evidence‑based, community‑driven set of grants that has funded culturally tailored mental‑health and prevention services across five priority populations. Several local evaluators and researchers told the committee the program produces positive health outcomes and strong return on investment. Hundreds of commenters said a midstream cut this year would dismantle organizations, eliminate jobs and leave communities without culturally specific mental‑health services.

Committee members repeatedly asked CDPH and DOF for more detail on which contracts were unspent, whether the funds were carry‑in authority or true savings, and whether reappropriate options could be considered. CDPH said some funds were set to expire under prior budget language and that the administration had to weigh difficult choices in a large general fund shortfall.