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WHAT'S NEW IN JUNE

CEO MESSAGE

ACHD is thrilled to announce that registration is now open for our 74th Annual Meeting, taking place in Monterey at the Monterey Marriot, October 7^th-9^th. We encourage attendees to register early to take advantage of discounted registration rates and reserve hotel rooms within ACHD’s room block.

This year’s theme, Navigate the Changing Tide: Leading Healthcare Districts Forward, was chosen not just to reflect the beautiful Monterey coast, but to honor the work health care districts are doing to forge forward in these rapidly changing and challenging times. As we have in years past, we will start with Governance Day on October 7^th, featuring an opportunity for attendees to complete the newly required SB 827 Fiscal & Financial training. The remainder of the day will feature additional presentations focused on health care district governance.

On October 8^th and 9^th, we will dedicate our time to the official 2026 Annual Meeting which will feature Keynote Speaker Michelle Gielan. Michelle’s Keynote will focus on how to thrive in the age of AI.

In the coming weeks, be on the lookout for details on our theme related activities (a yacht rock playlist curated by all of you seems in order), our Awards Nominations, and Call for District Best Practice Presentations. This event works because of you and we hope you make plans to join ACHD in Monterey this fall!

On the legislative front, the house of origin deadline was May 29^th so bills that survived will now start making their way through their second house. ACHD’s sponsored bill, AB 2311, progressed to the Senate, where it will make its way through the process over the summer. June also means it is state budget season. Sarah Bridge, ACHD’s VP of Advocacy and Strategy, is closely monitoring both houses as they try to reach a deal on the budget and deliver it to the Governor by the June 15^th statutory deadline. See Sarah’s update below for more details.

As summer kicks into high gear, we hope you find time for some rest and relaxation. As always, if ACHD can be of assistance, please don’t hesitate to reach out. We look forward to seeing everyone in Monterey!

With gratitude,

With house of origin behind us, policy committees are picking back up over the month of June. The Legislature will dispense with thousands of bills in policy committees before adjourning for Summer Recess on July 2^nd. The Legislature will return for the final month of session on August 3^rd and adjourn for the year on August 31^st. The full legislative calendar is available here.

State Budget Update: 2026-27 Fiscal Year

California's 2026-27 state budget process is in full swing as the Legislature works toward the constitutional deadline of June 15^th to pass a budget bill. Both the Senate and Assembly have released their respective budget plans following Governor Newsom's May Revision, and negotiations are actively underway. It is anticipated that the two houses may reach a bicameral agreement as early as this weekend, which would set the stage for final three-way negotiations with the Governor’s Administration before the fiscal year begins July 1^st.

Senate Budget Plan: “Foundation for the Future”

The California State Senate released its 2026-27 budget framework, titled “Foundation for the Future,” in April 2026. The plan is organized around three core pillars: building state reserves, maintaining funding for essential programs, and reducing the long-term structural deficit. Read the Senate’s full budget plan here. The final budget sheets were also released last week, which outline the acceptance, rejection or modification to the Governor’s proposed budget. The Budget Subcommittee No. 3 on Health and Human Services budget proposal can be found here.

Key health care provisions in the Senate plan include:

• Protection of Medi-Cal: The Senate plan rejects several of the Governor’s proposed cuts to Medi-Cal. It maintains continued investments in managed care base rates for primary care, specialty care, and hospital services, and seeks to delay or reject proposed cuts to dental benefits, rural health clinics, and family planning services.

• Fair Share Contribution: A signature Senate proposal that would require the top 1–2% of the largest California corporations to contribute toward the Medi-Cal costs of their workers, estimated to generate between $5 billion and $8 billion annually.

• Behavioral Health & Workforce: Continued investments in behavioral health crisis services, mobile crisis response, transitional housing, and workforce development programs at HCAI.

• Reserves & Fiscal Stability: The Senate proposes boosting the Rainy Day Fund while maintaining HHAP funding, California Dream for All, and the addition of 44,000 new childcare slots.

Distressed Hospital: The Senate proposes $200 million for distressed hospitals, up from the $50 million proposed in the Governor’s budget.

Assembly Budget Plan: “Road Map to a Responsible and Compassionate Budget”

The California Assembly released its own 2026-27 budget plan on June 1, 2026. Access the full Assembly budget plan here, including Subcommittee No. 1 on Health.

Key health-related positions in the Assembly plan include:

• Medi-Cal Asset Test: Delays implementation of the stricter asset limit until July 1, 2027, protecting an estimated 25,000–37,000 seniors and adults with disabilities from potential coverage loss.

• Behavioral Health Investments: Accepts the Governor’s proposed cuts to the Behavioral Health Oversight and Accountability Commission (BHSOAC).

• Health Workforce: Includes $5 million General Fund for physician access and workforce development in shortage areas.

• Distressed Hospital: Accepts the $50 million allocation for distressed hospital as proposed by the Governor.

Budget Timeline & Next Steps

With the June 15 constitutional deadline approaching, the Senate and Assembly are expected to resolve remaining differences this weekend, producing a unified two-house legislative budget. Following that agreement, the Legislature will present the budget bill to Governor Newsom, who will then have 10 days to sign, veto, or line-item veto portions of the bill. Final three-way negotiations will continue in the days following the constitutional deadline to reach a complete budget agreement. The full fiscal year begins July 1, 2026.

ACHD Participates in allcove Lobby Day

ACHD was proud to join the allcove Lobby Day in Sacramento on May 19^th alongside partner health districts and organizations committed to youth mental health access. ACHD participated in this advocacy day alongside, Peninsula Healthcare District, Community Trust of Pajaro and Beach Cities Health District to request a $24 million allocation to preserve the allcove network.

ACHD’s participation in the allcove Lobby Day underscored our commitment to championing programs that reach young people early, reduce stigma, and build a more accessible and equitable behavioral health system for all Californians.

ACHD Joins Coalition to Fight for Restoration of WQIP

ACHD also participated with a broad coalition of stakeholders to advocate for the restoration of the Skilled Nursing Facility (SNF) Workforce and Quality Incentive Program (WQIP), a critical Medi-Cal directed payment program that was eliminated in the 2025-26 state budget.

The Workforce and Quality Incentive Program (WQIP) is a directed payment program administered by DHCS that provides financial incentives to Medi-Cal-enrolled Skilled Nursing Facilities (SNFs). The program was designed to improve quality of care, advance equity in health care outcomes, and invest in the SNF workforce by incentivizing improvements in staffing levels, staffing completeness, and staff retention.

WQIP replaced the prior Quality Accountability Supplemental Payment (QASP) program and was originally authorized through Assembly Bill 186 (2022) for dates of service January 1, 2023 through December 31, 2026. Its early termination at the end of 2025 removed a key financial lever incentivizing SNFs to improve care quality and invest in their direct care workforce at a time when the long-term care sector is already under significant pressure.

ACHD joined a coalition of stakeholders , including labor groups, long-term care advocates, and provider groups, to urge the Legislature and Administration to restore WQIP funding in the 2026-27 budget. Restoring WQIP represents a meaningful investment in both quality care and workforce stability for one of California’s most vulnerable patient populations.

Legislative Bill Updates

AB 1337 (Ward) — Information Practices Act of 1977 (IPA Reform Act of 2025-OPPOSE

AB 1337 is a significant data privacy measure that would modernize California’s Information Practices Act (IPA) of 1977, the statutory framework that governs how public agencies collect, store, and disclose personal information by applying it to all local agencies. ACHD is strongly opposed to the measure and is jointly leading the opposition coalition. The bill that was killed last year in Senate Judiciary Committee has been resurrected for reconsideration under the newly created Senate Privacy Committee. The bill will be heard on June 15.

AB 1854 (Krell) — Legally Protected Health Care Activities (California Shield Law Clarification) -OPPOSE UNLESS AMENDED



AB 1854, sponsored by California Attorney General Rob Bonta, is a reproductive health care shield law bill introduced in direct response to ongoing attacks on California-based health care providers by out-of-state legal authorities. The bill currently applies only to public health care providers, including healthcare districts. ACHD will continue to work with the author and sponsors to ensure districts can continue to provide appropriate care, in compliance with shield laws.