California is spending more than it expected on Medi-Cal and Republican lawmakers are pointing to coverage expansions that benefited immigrant households.
The California health care program that covers almost 15 million people is costing more money than Gov. Gavin Newsom projected, creating a new budget problem in a lean year.
Now his administration is borrowing $3.4 billion from the state’s general fund to cover the unexpected cost increase. It’s unclear when the administration plans to restore the money.
The administration acknowledged that more people are enrolled in the program than the state anticipated, and that the state is spending $2.7 billion more than it planned on coverage expansions for immigrants without legal status.