Revised 2021/22 State Budget Proposal Summary

As anticipated, this month, Governor Newsom released his proposed May Revised Budget Summary for FY 2021/22. In this revision, the initiatives specific to the Medi-Cal program, such as the $5 million in one-time funding to establish professional learning networks to increase capacity for LEAs to access federal Medi-Cal funds and, funding of $250,000 for a lead COE to provide guidance for Medi-Cal billing, were removed. Additionally, the funding proposed to expand certain telehealth flexibilities authorized during COVID-19 has also been removed. However, in none of these cases do we anticipate any negative impact. For example, while the telehealth funding is removed this will not remove your LEA’s ability to continue to claim for the telehealth services you are providing.

Furthermore, initiatives surrounding student mental health services were also revised. These revisions include $4 billion towards a Children and Youth Behavioral Initiative, which focuses on increasing access to behavioral healthcare through an online platform, school-based services, and other methods; and an increase of $30 million over five years (initially $25 million) to expand the existing Mental Health Student Services Act Partnership Grant Program that supports the mental health needs of students.

The budget is anticipated to be passed this summer. In the interim, Paradigm will continue to monitor and provide updates accordingly.

For additional information and to review the full Revised Budget Summary, click here.