June 1 Letter to delegation - State Budget Priorities

June 1st, 2026

Senator Mike McGuire
1021 O St., Suite 8518
Sacramento, CA 95814

Assemblymember Damon Connolly
1021 O Street Ste. 5240
Sacramento, CA 95814

RE: Marin County Budget Priorities in Response to May Revision, Legislative Budget Proposals

Dear Senator McGuire and Assemblymember Connolly,

On behalf of the Marin County Board of Supervisors, thank you for your continued partnership to understand the far-reaching impacts of H.R.1 on the ability of counties to maintain and improve community health and well-being. While the Governor’s May Revision included positive developments regarding the state’s fiscal outlook, we are concerned about the lack of meaningful investment in a number of programs that serve our most vulnerable residents.

We write to respectfully share Marin County’s most urgent priorities and echo the advocacy by our state-wide partners as the Governor and Legislature prepare the final FY26-27 budget. 

Marin County Budget Priorities

H.R.1 Impacts on CMSP counties

Due to the passage of H.R.1, single adult Medi-Cal enrollees will face new federal Medicaid work requirements starting on January 1, 2027. Individuals that are unable to meet these new requirements – estimated at 6,708 in Marin County – will be disenrolled, many returning to rely on indigent coverage provided in Marin County by the County Medical Services Program (CMSP). As you know, with the expansion of Medi-Cal under the Affordable Care Act (ACA), Health Realignment funds were redirected from CMSP counties and the CMSP Governing Board to the State because the resources were no longer necessary. 

With many Medi-Cal enrollees losing coverage, we support the California State Association of Counties (CSAC) revised budget proposal and direct ask for the state to establish a limited, emergency-only Medi-Cal benefit for two years, managed by the state. This would allow for a more seamless re-enrollment in Medi-Cal when work requirements or other eligibility is met. This is critical to support – even at a more limited coverage – and track some of the most vulnerable in our community, such as individuals experiencing homelessness. CSAC has requested $50 million in FY 2026-27 and $462 million in FY 2027-28 in order for this emergency-only Medi-Cal benefit to be implemented. 

We support the partial inclusion of this request in the Assembly Budget proposal, and we urge the adoption of this solution in the final budget, funded at the full amount needed.

Marin County and CSAC also continue to be concerned that the May Revision does not include ongoing funding to support counties’ increased administrative costs. We appreciate the one-time $262 million in FY 2026-27 ($33 million in FYs 2027-28 and 2028-29), but this does not address the significant, ongoing cost burden shifted to counties for the administration of new CalFresh and H.R.1 work requirements. 

We support the increased funding for Medi-Cal and CalFresh eligibility staffing in the Senate and Assembly budget proposals. 

Homelessness and Housing Funding

Marin County has fully embraced a Housing First model and has made demonstrable progress in reducing homelessness – thanks to state investments and your support – particularly through the Homeless Housing, Assistance, and Prevention Program (HHAP) and Encampment Resolution Funding (ERF). 

Since 2022, chronic homelessness among individuals in Marin has declined by 37%. Prior year state investments are actively resolving encampments and reducing unsheltered homelessness, and we urge consideration for the following investments to continue this progress:

• Restore investment in HHAP to $1 billion, up from $500 million; and
• Continue ERF funding beyond Round 5.

Our Board was proud to be the first in the state to endorse Proposition 1, and we did so knowing it would stretch limited behavioral health resources across a broader population. We cannot simultaneously reduce homelessness funding without severely jeopardizing overall progress on housing and behavioral health.

We support the increased allocations to HHAP in the Senate and Assembly budget proposals and continue to call for $1 billion in FY 2026-27.

Behavioral Health Funding

Marin County supports a systems-oriented approach to behavioral health reform and policy development, recognizing importance of cohesive policies and programs and appropriate funding that empowers counties to deliver targeted, effective, flexible, and cohesive care to individuals most in need. Marin County was recently designated as one of ten “CARE Champion” counties by Governor Newsom as a leader in the state for successful implementation of the CARE Act. To continue delivering a high standard of care, we urge consideration for the following investments:

• Reverse the proposed conversion of the Mobile Crisis Benefit to an optional benefit. This is a vital program that Marin County has invested significantly in to assist individuals in behavioral health crisis access treatment and housing;
• Behavioral Health Services Act (BHSA) fund stabilization to address existing funding volatility and allow for long-term planning; and
• Ongoing funding for Behavioral Health care needs in light of Proposition 36, SB 43, the CARE Act, CalAIM and other programs that have impacted limited behavioral health resources. Despite a one-time allocation that was made from the State’s General Fund in the 2025 Budget Act, the Governor’s Budget proposal currently does not include any additional funding to address county implementation costs.

We support continued funding for the Mobile Crisis Benefit as included in the Senate and Assembly budget proposals. We also support the renewal of $100 million to Prop 36 implementation funding proposed in the Senate Budget Proposal.

Health Access Concerns

Among the proposals in the Governor’s Budget released in May, there are two key concerning cuts that would most affect vulnerable populations in Marin.

• Removal of the state’s share of costs for In Home Supportive Services (IHSS) hours-per-case-growth. This is estimated at a $233 million shift to counties. IHSS is highly utilized in Marin County given our high population of older adults and generous contribution to the program from the County General Fund.
• Lack of renewed funding for the California Nutrition Incentive Program (CNIP) “Market Match” program which provides CalFresh recipients with money to purchase fresh fruits and vegetables at farmers markets. This program drives health equity, and economic development in rural areas such as West Marin.

We support the rejection of proposed cuts to the IHSS program by the Senate and Assembly budget proposals. 

We appreciate your leadership in the State Legislature to raise the important perspective of counties that are providing critical services to our shared constituents. We remain committed to being a strong partner to State decision-makers and endeavor to communicate the critical nature of these priorities. 

Sincerely,

Eric Lucan, President

Marin County Board of Supervisors

CC:       Marin County Board of Supervisors