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Hospital Seismic Update:
Annual hospital seismic compliance letters went to all general acute care hospital chief executive officers, on December 24, 2024. If you are a hospital CEO who has not yet received the letter, please contact ACHD, for a copy of your letter. These letters do not account for AB 869 (Wood, 2024) seismic extensions. The Department of Health Care Access and Information (HCAI) expects to open AB 869 extension information by the end of March.
ACHD is working with HCAI and the legislature to ensure a successful implementation of these important extensions. ACHD will be providing impacted district hospitals with additional information related to both the compliance letters and the AB 869 extensions. If you are an impacted hospital, please be on the lookout for communications from ACHD in the coming weeks.
California Legislature:
The California Legislature reconvened on Monday, January 6, 2025. The week prior, the Assembly and Senate leaders both announced Committee Chair appointments. The Senate changes are available, here, and the Assembly changes are available, here.
Notable changes include Senator Caroline Menjivar, named Senate Health Chair and Senator Akilah Weber will chair Budget Subcommittee No. 3 on Health & Human Services. Notably, Senator Menjivar held they Budget Subcommittee role, prior to Senator Weber, who most recently chaired the Assembly Budget Subcommittee No. 1 on Health & Human Services. The vacancy left by Senator Weber, will be filled by Assemblymember Dawn Addis. Final committee assignments for all members are expected to be released by the end of this week.
Approximately 110 bills have already been introduced between the Senate and the Assembly. As a reminder, the legislature has until February 21, 2025, to introduce bills. ACHD has pulled an introduced bill report, available here, for those interested.
ACHD will continue to provide healthcare districts with updates on introduced legislation of importance. Should you have any questions about a particular bill or bill idea, please contact ACHD.
Governor Newsom’s Preview of High Level Proposed 2025-2026 Budget:
In a departure from the typical budget rollout, the Governor previewed his proposed 2025-26 budget on Monday, due to anticipated travel plans to Washington D.C., that were later canceled due to the Southern California wildfire crises. The Department of Finance is expected to hold a press conference and release more budget details through their website on Friday, January 10, 2025.
The Governor noted the budget as aspirational, but accountable, and "being prepared" for uncertainties. State revenue is up by $16.5 billion, and is volatile given our progressive tax structure, but is now leveling after years of very pronounced highs and lows. The proposed budget is $322.2 billion with $228.9 billion in general fund and $16.9 billion in total reserves. Newsom noted the increased revenues have resulted in a modest budget surplus, but did not specify what the surplus number was in his comments.
The Governor also highlighted the state needs to be leaner and more accountable. He spoke about the increased healthcare costs across states, including CA, and the need to limit the costs in tandem with increasing access. Other past efforts at efficiency included the elimination of 6,500 state positions over two years, for a savings of $1.2 billion and $3.5 billion saved in state operational costs. The Governor also mentioned his plan for increased accountability for homelessness, housing, and behavioral health outcomes. A new state website on accountability will be released on Friday.
The full proposed spending plan’s release kicks off the official start of the budget season. The legislature will begin to analyze his proposed spending plan, verify their take on the state’s revenue outlook, and weigh in on how it should be allocated. ACHD will be providing a more robust analysis once details are released Friday.
Senate Budget Implementation Report:
On January 8, 2025 the Senate Budget Committee released the 2025-26 Budget: Program Implementation Update, which was prepared by the staff of the Senate Committee on Budget and Fiscal Review, and is intended to provide a snapshot of the implementation of major programs and Senate priorities.
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