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State budget fight centers on indigent care, UIS coverage and $5 million behavioral health training proposal for county
Summary
County state lobbyist HS Espinosa told the Legislative Program Committee that Assembly and Senate budget plans diverge on medical and indigent care policies, with the Assembly including a pilot to preserve emergency‑only coverage; public commenter Tony said the Assembly added a $5 million multi‑year training grant to bring LEAP/Dr. Javier Amador to support county behavioral health and community partners.
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HS Espinosa (Jean) gave the committee a state budget overview, stressing that the Assembly and Senate have different assumptions and that negotiations are ongoing to meet mid‑June procedural deadlines. "We are in what is a significant week for the state budget conversation," she said, noting the legislative plan must be in print by June 15 and that a three‑party agreement with the administration typically follows.
Espinosa said the Assembly version "does a better job at funding the HR1 obligations both from an eligibility perspective as well as from the indigent health and public hospital perspective," and that the medical budget is likely the most difficult area to reconcile between houses.
On elections policy, Espinosa noted Gov. Newsom signed SB73 before the primary as part of efforts to address federal proposals regarding mail ballots and predicted further state conversation about election safeguards ahead of November 2026.
Committee members asked how Assembly indigent‑care proposals would affect donor counties such as Santa Barbara. Kelly described an Assembly pilot included to preserve emergency‑only enrollment for people who fall off medical coverage because of work or community‑engagement requirements, with phased funding across budget years (the speaker described a total pilot funding figure of $250 million spread across fiscal years). Kelly said the approach is intended to keep people connected to an emergency services enrollment so hospitals can admit them when necessary and the state can more easily transition eligible individuals back to full‑scope coverage.
Espinosa and members discussed the administration's alternative proposal to move persons with unsatisfactory immigration status (UIS) out of managed care and into fee‑for‑service for all services. Espinosa warned the change risks reducing provider availability in the community and increasing hospital use because some providers would not participate in a fee‑for‑service arrangement.
She also briefed the committee on AB2257, which was amended to allow counties to create a jail administrator position subject to board confirmation; the administrator would still report to the sheriff and be offered up by the sheriff to the board. The county plans to continue supporting the revised bill.
During public comment, Tony (director at Bwell) described a budget proposal that grew from his May 4 testimony: he said Assemblymember Addis asked for a budget concept and the Assembly included a $5 million multi‑year proposal to bring Dr. Javier Amador and the LEAP Institute to train county staff, courts, public defenders, prosecutors, law enforcement, NAMI chapters and primary care partners on treating severe, untreated psychosis and anosognosia. "They've actually put $5 million in a multi‑year project for SenCal Santa Barbara and SLO County Behavioral Health to bring Dr. Amador and the LEAP Institute to do extensive training," Tony said, adding the proposal also funds grants for advocates and some care for uninsured people who fall through gaps in services. He said local partners will deliver one‑time training if the budget item does not survive negotiations.
The committee voted to receive and file the state update. The committee will meet again July 6.

