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Short on funds, Gov. Newsom says California won't end healthcare for undocumented residents

Short on funds, Gov. Newsom says California won't end healthcare for undocumented residents
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      WHEN THOSE RED FLASHING LIGHTS ARE ON. WE’RE FOLLOWING UP WITH GOVERNOR GAVIN NEWSOM RIGHT NOW AS THE STATE IS SHORT ON FUNDS FOR ITS MEDICAID PROGRAM, ALSO KNOWN AS MEDI-CAL. AND THIS ALL COMES AFTER THE STATE EXPANDED THE PROGRAM TO PROVIDE UNDOCUMENTED PEOPLE WITH HEALTH CARE. WELL, NOW, GOVERNOR NEWSOM SAYS THE STATE NEEDS BILLIONS OF DOLLARS IN LOANS. KCRA THREE CAPITAL CORRESPONDENT ASHLEY ZAVALA CAUGHT UP WITH HIM AT THE STATE CAPITOL TODAY, AND IS HERE WITH WHAT HE HAD TO SAY. KURTIS, THIS WEEK, THE GOVERNOR ASKED LAWMAKERS TO APPROVE ANOTHER $2.8 BILLION LOAN. ON TOP OF THE LOAN HE GOT LAST WEEK FOR $3.4 BILLION. SO CALIFORNIA IS NOW MAKING UP A $6.2 BILLION SHORTFALL FOR ITS MEDI-CAL FUNDS. THIS MONEY IS MEANT TO KEEP THE STATE’S MEDI-CAL PROGRAM FUNDED THROUGH JUNE. STATE LAWMAKERS RECENTLY EXPANDED THIS PROGRAM THAT PROVIDES HEALTH CARE TO LOW INCOME PEOPLE TO ALL CALIFORNIANS, REGARDLESS OF IMMIGRATION STATUS. BUT GOVERNOR NEWSOM’S ADMINISTRATION AND DEMOCRATIC STATE LAWMAKERS UNDERESTIMATED JUST HOW MUCH THAT PROGRAM WOULD COST. THIS YEAR ALONE, THEY ESTIMATED IT WOULD COST $6 BILLION. BUT AT LAST CHECK, THE COST IS NOW ESTIMATED TO BE 9.5 BILLION BY JULY. THAT’S JUST AN ESTIMATE. THE FEDERAL GOVERNMENT FINANCIALLY HELPS WITH MEDI-CAL PROGRAMS, BUT OBVIOUSLY THE STATE DOES NOT EXPECT THE TRUMP ADMINISTRATION TO HELP WITH THE HEALTH CARE FOR UNDOCUMENTED PEOPLE. BUT THE GOVERNOR REFUSES TO SOLELY BLAME THE EXPENSIVE COSTS TO THE STATE OF PROVIDING IT. I ASKED HIM ABOUT THIS TODAY. IS THERE ANYTHING YOU CAN SHARE ABOUT JUST THE UNDOCUMENTED HEALTH CARE EXPANSION AND HOW THAT’S CONTRIBUTING TO WHAT’S HAPPENING RIGHT NOW? THAT’S PARTIAL. YOU’VE SEEN IN PENNSYLVANIA, COLORADO, INDIANA THAT DON’T HAVE THAT EXPANSION. THEY HAD EVEN MORE SIZABLE SUPPLEMENTALS INTO THEIR MEDICAID SYSTEM. THIS WAS SOMETHING WE PREVIEWED IN THE JANUARY BUDGET, SOMETHING THAT I PREVIEWED IN SEPARATE CONVERSATIONS WITH OTHER GOVERNORS. IT WAS HIGHLIGHTED, ACTUALLY, IN DECEMBER AT THE DEMOCRATIC GOVERNORS ASSOCIATION AS AN ISSUE WE WERE SEEING ALL ACROSS THE COUNTRY. SO ALL OF THAT IS EXACTLY AS WE ADVERTISED IN JANUARY, AND WE’RE WORKING THROUGH THAT. THE GOOD NEWS YOU’VE SEEN THE REVENUES IN THE STATE. WE’RE COLLECTING ARE ABOVE PROJECTIONS. THE ECONOMY CONTINUES TO BE REMARKABLY RESILIENT. IS THIS THE LAST OF THE LOAN REQUESTS FROM YOUR ADMINISTRATION FOR THE YEAR? DO YOU THINK? YEAH. AND YOU’VE SEEN THIS IN THE PAST. THIS IS WE’VE DONE THESE LETTERS. THE LEGISLATURE WE’VE DONE THESE SUPPLEMENTALS IN THE PAST. AS I SAID, I NOTED FOUR STATES THAT I’M JUST MORE FAMILIAR WITH NO CHANCE OF ROLLING BACK ANY OF THE IMMIGRANT HEALTH CARE. IT’S NOT ON. IT’S NOT ON MY DOCKET. BUT BUT THAT SAID. EVERYTHING’S THE THE REALITIES OR THE REALITIES. YOU HAVE TO BALANCE BUDGETS. WE BALANCE OUR BUDGET REVENUES HOLDING UP. I DON’T SEE ANYTHING SIGNIFICANT ALONG THE LINES OF WHAT SOME HAVE ASSERTED, BUT I DO SEE THE NEED TO MAKE ADJUSTMENTS AND CHANGES BROADLY IN THE MEDICAID SYSTEM. AGAIN, THE GOVERNOR THERE, NOTING THAT HE’S LIKELY NOT GOING TO ROLL BACK THAT PROGRAM THAT PROVIDES HEALTH CARE TO UNDOCUMENTED PEOPLE HERE IN CALIFORNIA. BUT MEANWHILE, REPUBLICANS ARE BLAMING DEMOCRATS FOR CREATING FINANCIAL INSECURITY WITH THE STATE’S IMPORTANT HEALTH CARE PROGRAM. ASSEMBLYMAN CARL DEMAIO TOLD REPORTERS TODAY STATE LEADERS NEED TO IMMEDIATELY RESCIND THE HEALTH CARE FOR UNDOCUMENTED PEOPLE BECAUSE, HE SAYS, THE STAT
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      Short on funds, Gov. Newsom says California won't end healthcare for undocumented residents
      Gov. Gavin Newsom on Tuesday signaled California will not stop providing healthcare to undocumented people despite being billions short on funds for state healthcare costs. "Not on my docket," the governor told reporters when asked if he had plans to roll back the program.State leaders recently expanded the state's Medicaid program known as Medi-Cal to provide healthcare to undocumented people. The governor this week requested state lawmakers approve a $2.8 billion loan to help cover the state's soaring Medicaid costs after notifying them last week that he borrowed $3.4 billion because the program was short on funds. The money is borrowed from the state's general fund, which is made up of California taxpayer dollars. The federal government helps with Medicaid costs for low-income people, but state leaders do not expect the Trump administration to cover the costs for undocumented people, making the program more expensive for the state. The governor and state legislature underestimated just how expensive it would be, initially expecting the cost this year to be $6 billion. So far, with three months left in the fiscal year, Newsom's administration told lawmakers it swelled to an estimated $9.5 billion. The loans are supposed to cover Medicaid costs until June. Newsom acknowledged Tuesday that the healthcare for undocumented people is "partially" contributing to the state's rising Medicaid costs."This was something we previewed in the January budget, something I previewed in other conversations with other governors in December at the Democratic Governors Association as an issue we're seeing all across the country," he said. He pointed to other states that have had to also make up for Medicaid shortfalls like Colorado, Pennsylvania and Indiana, but those states are not facing nearly the size of California's. The governor said he thinks this will be the final loan request for the Medicaid issue this year. He said he was encouraged state revenues have been coming in better than expected, which could relieve the funding issues. "We must immediately rescind the coverage to illegal immigrants in the state of California, we simply can't afford it," said Assemblyman Carl DeMaio, R-Riverside, on Tuesday. "It's not just put the health coverage of poor Californians -elderly, disabled, young children- at risk because California politicians want to give handouts to people who aren't even citizens." There are several health-related budget hearings scheduled over the next several weeks. It's not clear exactly when lawmakers will begin publicly discussing the loan.| FULL INTERVIEW | Gov. Gavin Newsom speaks about Prop 35, transgender youth sports, Medi-CalSee more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel

      Gov. Gavin Newsom on Tuesday signaled California will not stop providing healthcare to undocumented people despite being billions short on funds for state healthcare costs.

      "Not on my docket," the governor told reporters when asked if he had plans to roll back the program.

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      State leaders recently expanded the state's Medicaid program known as Medi-Cal to provide healthcare to undocumented people. The governor this week requested state lawmakers approve a $2.8 billion loan to help cover the state's soaring Medicaid costs after notifying them last week that he borrowed $3.4 billion because the program was short on funds. The money is borrowed from the state's general fund, which is made up of California taxpayer dollars.

      The federal government helps with Medicaid costs for low-income people, but state leaders do not expect the Trump administration to cover the costs for undocumented people, making the program more expensive for the state.

      The governor and state legislature underestimated just how expensive it would be, initially expecting the cost this year to be $6 billion. So far, with three months left in the fiscal year, Newsom's administration told lawmakers it swelled to an estimated $9.5 billion. The loans are supposed to cover Medicaid costs until June.

      Newsom acknowledged Tuesday that the healthcare for undocumented people is "partially" contributing to the state's rising Medicaid costs.

      "This was something we previewed in the January budget, something I previewed in other conversations with other governors in December at the Democratic Governors Association as an issue we're seeing all across the country," he said.

      He pointed to other states that have had to also make up for Medicaid shortfalls like Colorado, Pennsylvania and Indiana, but those states are not facing nearly the size of California's.

      The governor said he thinks this will be the final loan request for the Medicaid issue this year. He said he was encouraged state revenues have been coming in better than expected, which could relieve the funding issues.

      "We must immediately rescind the coverage to illegal immigrants in the state of California, we simply can't afford it," said Assemblyman Carl DeMaio, R-Riverside, on Tuesday. "It's not just put the health coverage of poor Californians -elderly, disabled, young children- at risk because California politicians want to give handouts to people who aren't even citizens."

      There are several health-related budget hearings scheduled over the next several weeks. It's not clear exactly when lawmakers will begin publicly discussing the loan.

      | FULL INTERVIEW | Gov. Gavin Newsom speaks about Prop 35, transgender youth sports, Medi-Cal

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          See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel