Department of Health Services' (DHS) Fiscal Outlook, Supplemental Information

 Download file    (.pdf, 96.3 KB)

Description:
This memorandum is a supplement to the Department of Health Services's initial January 26, 2010 fiscal outlook report that indicated an anticipated, significant negative impact from the proposed $750 million reduction in State General Funds for the Medi-Cal program. However, at the time the department could not determine an estimate without more detailed information. Subsequently, it has become clear that the Governor's proposed budget assumes continuation in FY 2010-2011 reductions to the Safety Net Care Pool (SNCP) and the South LA Fund, which will decrease our projected revenues for 2010-2011 by $24 million, resulting in a corresponding increase in the projected two-year cumulative deficit to $600.7 million. This reduction is in addition to any reductions which would result from the $750 million reduction, because it is already assumed in the base.