California Governor Gavin Newsom announced a substantial $12 billion budget deficit, attributing it partly to federal policies under Donald Trump. However, the real issue lies in the state's soaring social-service expenditures, particularly for Medi-Cal, which now covers over a third of California's population. This includes extensive benefits for illegal immigrants, despite the program being intended for low-income individuals. Unless significant reforms are implemented in these welfare programs, California, alongside other blue states, is likely to continue facing severe fiscal challenges.
The main issue, the budget makes clear, is California's explosion in spending - especially for Medi-Cal, its health-care program for low-income individuals.
Since 2016, California has been continuously expanding coverage for what it calls the "undocumented." Medi-Cal's coverage is generous: it includes dental, vision and mental health services.
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