County board approves resolution supporting Prop. 35

The Tulare County Board of Supervisors unanimously approved a resolution in support of Proposition 35 which would require Medi-Cal funds to be used for healthcare services and not be redirected to pay for orther programs or reduce the state budget deficit. Medi-Cal is the state program that operates federal medicaid funds.

Supervisors Dennis Townsend, Larry Micari, Pete Vander Poel, Amy Shuklian and Eddie Valero all approved the resolution in support of Proposition 35 at the meeting on Tuesday. Voters will consider the proposition on the November 5 general election ballot.

Local health care leaders in Central California have stated the proposition is vital to provide needed health care services in rural areas.

Townsend brought the matter before the board after the association that represents county governments, Rural County Representatives of California, also unanimously voted to support Prop. 35.

Townsend said RCRC particularly liked that Prop. 35 would mandate Medi-Cal funds would only be used for health care services. Townsend said the state has taken $30 billion over the years from Medi-Cal funds to pay for other programs and to deal with budget shortfalls.

“What we loved about it…it can’t be skimmed off of any more,” said Townsend about the state using Medi-Cal funds for other purposes.

Prop. 35 was placed on the ballot to deal with the issue of Medi-Cal reimbursements failing to cover Medi-Cal costs. The measure would also make permament the Managed Care Organization, MCO, tax that’s charged on health plans such as Kaiser Permanente.

Governor Gavin Newsom has signed off on $2 billion in increased payments for Medi-Cal but has indicated he would not support Proposition 35 during a time in which the state continues to face budget difficulties. A State Legislative Accounting Office stated increased state and federal funding, the MCO tax and not diverting Medi-Cal funds would mean an additional $4 million in revenue annually for Medi-Cal.

Townsend clarified Prop. 35 doesn’t call for a new tax but just makes the MCO tax permanent. While reauthorizing the MCO tax at the state level would no longer need to be done if Prop. 35 passes the tax would still have to be reauthorized at the state level every three years. Prop. 35 also mandates 99 percent of Medi-Cal funds be used for health care services and just one percent be used for administration.

Townsend said the board supporting Prop. 35 could help in making a difference as far as the proposition passing. “To do a resolution of this I think it will help,” he said.

Also at Tuesday’s meeting the board unanimously passed a $2.01 billion budget for operating costs for the county for the 2024-2025 fiscal year. The $2 billion budget includes a $1.24 billion general fund budget. The budget is balanced as required by law.

The county’s strategic reserve increased from $41 million to $50 million and the budget also includes paying down debt by $22 million. The budget increases funding retirement costs from $57.6 million to $64.4 million as well.

Townsend noted he was glad to see the reserve increase and added about paying down the debt, “a debt pay down is huge that’s been able to occur.”

He also said he was glad to see retirement benefits increase. “To ratchet those up just to keep up is great,” he said.