SACRAMENTO, Calif. (AP) – California Gov. Jerry Brown proposed a $122.5 billion state spending plan Tuesday and warned of a looming $2 billion deficit because of falling tax revenues.
The proposed budget was announced as the state faces uncertainty about changes to come from President-elect Donald Trump and the Republican-led U.S. Congress.
Trump has pledged to repeal President Barack Obama’s health care law, which California has embraced by enrolling about 5 million people in private health insurance or publicly funded Medi-Cal coverage. The budget assumes policies remain the same, but Brown noted the federal uncertainty is yet another reason to maintain the fiscal prudence for which he consistently advocates.
“If they do go down that road, it will be extremely painful for California,” Brown said.
About 1.4 million people signed up for coverage last year through Covered California, the insurance exchange created under the Affordable Care Act.