AB 109 includes a record $127 billion allocation to kindergarten through 12th grade education and community colleges.
Assembly Speaker Robert Rivas (D-Salinas) said that the legislature is concerned about the historic surge in gas prices, persistent and rising inflation, and even higher costs for groceries, housing, energy bills, and health care affecting most Californians.
The legislative spending package targets healthcare infrastructure stability across several key areas. The budget authorizes up to $190 million from the general fund in forgivable loans through the Distressed Hospital Loan Program to support struggling hospitals. The budget also provides $250 million specifically to support California’s public hospital systems.
AB 109 also rejects the governor’s proposal to reduce the Medi-Cal asset limit for seniors and disabled individuals down to $2,000.
Sen. Laura Richardson (D-San Pedro), the chair of the Senate Budget Subcommittee No. 5 on Corrections, Public Safety, Judiciary, Labor, and Transportation, explained that the Senate worked diligently to ensure healthcare protection.
“While there are ongoing access issues around programs such as Medi-Cal, hospitals, and courthouses, we have created a plan that will ensure Californians have access to essential services,” Richardson said.
Under the budget agreement, the Legislature included an overall package of $375 million to support Proposition (Prop) 36 implementation, which covers court workloads, mental health treatment, victims’ services, and public safety programs.
In addition, a distribution of $50 million in one-time funding goes to counties strictly for behavioral health departments to handle substance use and mental health treatments under Prop 36.
Republicans insist that those allocations are not enough.