Recent revelations from a California budget official have brought to light the substantial cost borne by taxpayers for healthcare provided to undocumented immigrants. Guadalupe Manriquez, a program budget manager within the California Department of Finance, informed the state Assembly Budget Committee that the current expenditure for undocumented individuals enrolled in Medi-Cal has reached $9.5 billion. This revised figure, based on the governor's updated budget estimates, represents a significant increase from the previously reported amount. Of this total, $8.4 billion is drawn from the general fund.
Republican Assemblyman Carl DeMaio highlighted the potential impact of these costs on the state's budget challenges, suggesting that the funds could be used to address budget shortfalls and potentially avoid dipping into the rainy day fund. The initial estimate for this expense was around $6 billion, significantly lower than the current figure. This increase comes as a new state law, effective from the beginning of 2024, removes immigration status as a factor in applying for state-subsidized health insurance.
California Assembly Minority Leader James Gallagher emphasized the financial strain this expenditure places on the state, particularly at a time when California faces a substantial budget deficit. He criticized the state's spending priorities, highlighting the difficulties faced by working Californians in accessing healthcare while significant funds are allocated to healthcare for undocumented immigrants. Gallagher argued that this reflects a failure of leadership and fiscal responsibility.
Democratic Assemblywoman Pilar Schiavo acknowledged that healthcare costs are a primary focus of the current administration, contributing to budgetary uncertainty. She pointed to potential threats to Medicare and Medicaid (Medi-Cal in California) from entities like Elon Musk and DOGE, which represent a significant portion of the state's budget.
This debate over healthcare spending coincides with increased federal efforts to address illegal immigration, including ICE raids and stricter border control measures. Steve Hilton, founder of Golden Together and a Fox News contributor, criticized California Democrats' prioritization of healthcare for undocumented immigrants amidst high poverty rates and taxes. He argued that this reflects misplaced ideological priorities and predicts a shift in California's political landscape in response to public dissatisfaction.
