Thu Sep 19 09:00:00 UTC 2024: ## California’s Proposition 35: A Healthcare Funding Fight with Big Stakes

**Sacramento, CA** – A November ballot initiative in California, Proposition 35, is causing a heated debate about how to fund healthcare for the state’s low-income residents. The initiative, which would dedicate a portion of taxes on managed-care health plans to increase Medi-Cal provider pay, has garnered support from a wide coalition including doctors, hospitals, community clinics, and both major political parties. The campaign has raised over $48 million in support.

However, a smaller group of community advocates, including the League of Women Voters and The Children’s Partnership, have emerged in opposition. They argue that Proposition 35 would supersede the state budget, potentially jeopardizing funding for programs like a new program designed to provide continuous Medi-Cal coverage for children under 4.

Opponents contend that the ballot measure prioritizes increasing provider pay over the needs of vulnerable populations like children, seniors, and people with disabilities. They worry that while Proposition 35 promises additional funding for doctors and hospitals, it would leave other critical programs underfunded.

Proponents counter that the initiative is a much-needed investment in the Medi-Cal system, arguing that increased provider pay would attract more providers to the program, improve access to care, and reduce wait times. They also emphasize that the measure includes funding for the general fund, allowing the legislature to allocate it as they see fit.

The debate is further complicated by uncertainty surrounding federal rules governing managed-care taxes. The federal government has repeatedly warned California that it may require a more balanced approach to the tax, potentially jeopardizing the entire funding model for Proposition 35.

Governor Gavin Newsom has expressed concerns about the initiative, warning that it would limit his administration’s flexibility in addressing the state’s budget gap.

With millions of dollars at stake and conflicting views on the impact of Proposition 35, the upcoming election is poised to be a pivotal moment in the fight for affordable healthcare in California.

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