May 18, 2026 · Local Government · 3,570 words · 18 speakers · 61 segments
Thank you. Come to order. Good afternoon and thank you for joining us. The Senate welcomes the public in person and we are holding our committee's hearings here in the Capitol Building. I ask all members of the committee, I think they're almost here, to be present in room 112 so we can establish our quorum. We have one bill on today's agenda, AB 1768 by Assemblymember Bryan. We will establish a quorum. before you read the presentation. Senator Starazzo?
Here. Starazzo here.
Choi? Aye.
Choi here. Avelline?
Present. Avelline here.
Ashby?
Cervantes?
Laird?
Sayarto? Here.
Sayarto here. You have a quorum. Thank you. And so I think a quorum has been established, and we'll begin with Assemblymember Bryan. You may present your bill, AB 1768.
Welcome. Thank you, Madam Senator. I think this might be my first time before this particular Senate committee.
We're the best.
Always, always good to be with you. the most vulnerable communities in california continue to be attacked by the federal administration as we saw as recently as last week 1.6 billion dollars in medicaid reimbursements are being withheld from california los angeles county projects losing a total of 2.4 billion over the next three years without additional local revenue sources these cuts will affect the county departments that focus on providing angelinos with quality health services the county is already instituting hiring freezes and has warned of potential layoffs affecting as many as 5,000 workers who keep the system running every single day. More than nine clinics have already closed in Los Angeles County. Contra Costa County faces similar cost pressures as federal cuts cascade through Medicaid, SNAP, and other social safety nets. AB 1768 is a simple bill. It's about whether local jurisdictions have the state's authorization to respond to federal funding cuts in the way that their voters and their constituents choose to. I think that it's important to maintain this kind of local control. In fact, in many ways, the government should get out of the way of local jurisdictions and let them make the decisions that are most needed in this important time. This bill left the state assembly floor last week with a supermajority of bipartisan support. I respectfully ask for your support today. With me to testify are Angela Pontes, the Senior VP of Government Affairs at Planned Parenthood California, and Dennis Cuevas Romero, the VP of Government Affairs at the California Primary Care Association.
Thank you, Assemblymember. Go ahead, you may begin.
Good afternoon, Madam Chair and members. Dennis Cuevas Romero, Vice President of Government Affairs with the California Primary Care Association, the statewide association that represents community health centers and clinics in the state. Appreciate the opportunity. As you know, community health centers serve the most vulnerable or the backbone of our community. As the Assemblymember mentioned, the impacts of, you know, HR1 and state budget decisions are already being felt. Clinics have closed in Los Angeles County. There's staff shortages, reduced capacity to meet the needs of the primary care and behavioral health services. And these impacts will only continue to grow. So this bill, as the Assemblyman mentioned, is in a tax. It really empowers the community to make a decision to make sure that they continue to provide care for the safety net. And for those reasons, CPCA is in strong support and sponsoring the bill. So we ask for your aye vote. Thank you.
Good afternoon. Angela Pontus on behalf of Planned Parenthood Affiliates of California in support of AB 1768. In just LA County, two Planned Parenthood affiliates together operate 28 health centers and 26 school-based sites. This is one quarter of all Planned Parenthood health centers in California. When the president signed H.R. 1 into law last year, Planned Parenthood health centers were immediately federally defunded. We know that H.R. 1 also included many other devastating impacts to health care programs across the state. In response, LA County proposed a local solution by placing the Essential Services Restoration Act on the June ballot. If passed, this measure may raise about $1 billion to support health care services that were impacted by H.R.1 in LA County, including Planned Parenthood. AB 1768 will empower voters to decide how to address these federal cuts by facilitating the measure to be implemented legally if it is approved by the voters in June. We ask for your aye vote.
Thank you very much. Is there anyone here in opposition? Oh, I'm sorry. In support? Not yet.
Thank you, Madam Chair and members. Megan Subers on behalf of the California Professional Firefighters in strong support.
Thank you.
Madam Chair and Senators, Terry Brennan on behalf of SEIU California. Strong support. Thank you.
Thank you.
Good evening, Madam Chair and members. Connor Gustman on behalf of Teamsters, California, in strong support.
Thank you.
Madam Chair and members, Sarah Flox, California Federation of Labor Unions, in strong support.
Thank you.
Alison Ramey on behalf of the State Pipe Trade Council and the State Association of Electrical
Workers, in support.
Jeff Neill representing Contra Costa County, also in support.
Thank you.
Good evening, Madam Chair and members.
Jessica Hay with AFSCME California in strong support Thank you Okay now is there anyone in opposition to this bill AB 1768
Nobody in opposition. Okay. Okay, go ahead.
Good evening. Kiera Ross on behalf of the cities of Glendale and Burbank in opposition.
Burbank and Glendale. Okay, thank you very much. Anyone else in opposition? Seeing none. Questions or comments from the dais? Somebody? Senator Ciardo?
Okay.
Thank you.
So normally on these bills, I try to defer to the district. I figure if they want to do this to their constituents, then that's on them. However, when it comes to L.A. County, it's a little personal. Part of that personal is that I have a tremendous amount of family and friends that live in that district. And one thing, and they cross both lines. They're Democrats, they're Republicans, they're people in the middle. And one of the things that is constantly expressed to me at just about every gathering that we have is they are so sick and tired of not having a voice that says it pushes back on all these attempts to raise their taxes, to raise the cost of living. and usually they don't see the return in investment from what they're promised on the glossy flyers that come out from the citizens for whatever it is. Raising the sales tax another half percent from its 2% that has already been raised. Where is the line where we start being more responsible with how we spend money? L.A. County's difficulties and the state's difficulties as far as health care started long before H.R. 1. That was our own doing. We expand health care beyond what we could afford. But that being said, $220 billion, especially $20 billion more from the federal government for Medi-Cal, is not a cut. $20 billion more than last year. That's what we're anticipating this next year. So it's hard to say that we're getting cut. And the people that read the newspaper every day and start planning their retirement for outside of California because of what's happening to them. From them, I would say a resounding no. Let's see some responsible spending before that. One other thing. I know that every time we have one of these tax measures, and I used to resent this as a firefighter. They plaster the firefighters all over that. Why? Because they're popular. Because people don't want to say no to a firefighter. And I resent being used like that. There are plenty of ways for us to prioritize and fund the things that are very important in the state and also in these counties. And we're not doing that. And instead we're relying on this constant push to raise taxes. A lot of people have said enough is enough. Their property taxes are just, I mean, their properties have, their values have gone way beyond what these properties should be valued at. And therefore their property taxes for people buying new homes are way beyond what normal people, what other people pay in taxes. Our gas prices, when you're talking about sales tax impact, our gas prices are the highest in the nation, especially in L.A. I was there last week or two weeks ago. I was paying $6.75 a gallon for gas. That's all sales tax. So it's pushing that even. So, you know, we have a lot of self-inflicted wounds. Yes, we can try to blame the federal government for all our problems, but it is not the source of all of our problems. There are some issues that we have that have created, exacerbated some of our problems, but they are not the source. We are the source, and we keep pushing measures that make that worse. So on behalf of all those people that I don't represent officially, but I get to hear at the dinner table, I will not be supporting this. Thank you.
Well, thank you, Madam Chair. I'm proud to be a co-author of this bill, and as the only member from Contra Costa County who serves on this committee. There's another county that is included in this bill. It's not just Los Angeles. It's also Contra Costa County, and I think the author did a good job of putting this in context. This administration announced last week that they're withholding over a billion dollars in funding for Medicaid over allegations, mind you, allegations of fraud in terms of how the state is administering Medicaid benefits. There's no proof that fraud does exist in harming people that rely on those benefits for essential health care services. I wish that we didn't need this bill. I wish that this administration and the Republican majority in Congress did not pass H.R.1, which created huge impacts on the delivery of health care and other essential services for people in California and throughout this country. but sadly we're in the situation where we need to do everything we can to make sure that our residents have access to health care and nutrition assistance and other essential social services that they rely on for their livelihood. And all this bill does is give the voters of Los Angeles County and Contra Costa County the choice about whether they want to approve a sales tax increase beyond the current limit. Just to put this in context in terms of the impact on Contra Costa County, in terms of the impact of HR1 on Medicaid enrollment. And I'll also put this in context, I represent West Contra Costa County, a third of the county, which is the poorest part of Contra Costa County, and also where we have the largest number of Medi recipients So this disproportionately impacts my constituents which is why I a fierce advocate for this bill and why it needs to pass 93 people in Contra Costa County 93 are at risk of losing their Medi-Cal coverage because of H.R.1. In terms of CalFresh, an estimated 17,600 residents will lose their eligibility. We know that we can't backfill the impact of those cuts. In terms of the impact on our hospitals and clinics, 500 million in funding reductions over the next five years, and a projected $1 billion in operating deficits for hospitals and clinics in Contra Costa County alone, not even taking account Los Angeles County or other counties in the state of California. Nothing's more fundamental to our responsibility as elected officials than public safety and health care. And right now, our health care system in both these counties and throughout California is at risk, which is why the voters of these two counties will be considering a measure and why this bill is essential to give them the ability to raise the funds necessary to make sure that we can maintain essential health care access for people in these two counties. I strongly urge my colleagues to support this bill, and I move the bill to the appropriate time. Thank you, sir.
Thank you. Senator Choi.
We talk about a lot of affordability. That's not just a conceptual abstract policy discussion. We know how cost of living has reason, and gasoline price alone is L.A. and North County area, so $6, $7 per gallon. And we add extra burden for many different reasons so we can come up with the extra tax burden for our citizens. and already working families feel that they are already paying enough tax. According to the PPIC statewide survey, the survey says 70% or more people feel like we are already paying enough share of their tax burdens for many different areas. But now, just because of HR1 excuse, we try to add extra burdens. Once we allow these two counties, every other city will come up with a special request. we are in the same situation as the Casa Contra and Los Angeles and allow us. Then what do we do? I don't think this is one regional issue. This is a statewide issue that this is not the perfect time to raise and add additional burden for citizens with extra taxation. So for that reason, I won't be able to support.
Thank you. Any other comments? Yes, Senator Sayardo.
Based on the comments about the Medicare tax. Two years ago, before you were here, Senator, we mulled over the MCO tax. And the reason we're mulling over the MCO tax, and I was talked down to a lot about this, because I said, you know, that sounds a lot like we're trying to trick the federal government into paying for something that they have never paid. The federal government has never paid through Medicaid for people that were not citizens of the United States. And we added them anyway, knowing that that is a state burden, a state burden. They've never, ever done that. when we did the MCO tax and doubled our tax higher than anybody else in the country so that we could collect more from the federal government, supposedly making that into a reimbursable expense, they figured it out, which is exactly what I warned the body that they would probably do, is they'll figure it out later on. And guess what? That's what they did. And that's the cut you're seeing. Not the $20 billion. If they're really cutting, they get rid of the $20 billion. The other thing I would say is perhaps then based on the discussions about not being able to pay, and it's a $1.6 billion, we need to look at what our May revise is talking about. The governor was on TV the other day touting upwards of $25 billion, of which 12 of it is discretionary that we didn't anticipate that we would be getting. So we have some choices there, and we all have ideas about how we should go about looking at those choices. But I think raising taxes at this point should be something that we put on hold from our perspective until we have a good grasp on what is supposed to be a very balanced budget from here until 2029, according to the governor. So we have money, apparently, and we need to make sure that we are paying for what we decided. California decided that that's the road we wanted to go down and add people onto the rolls. And that's our burden. And we can accept that, but we just have to be honest with our taxpayers and say, yes, we're the ones who did that. and therefore we are going to take responsibility and figure out how to do it. Hopefully not by raising people's taxes again. That's my comment about that subject.
Yes, sit down again and then we're going to stop.
I don want to have a back and forth but I feel since my name was invoked I should respond I was not here but I would have gladly voted to expand Medicare access to ensure that all people regardless of their citizenship status are covered And you right that did have a budget impact, which is why we made certain changes last year when we adopted the budget. What I'm talking about is the impact of H.R.1 and the ripple effect that's had in counties throughout California. And once again, this bill is not the state of California imposing a tax increase on LA or Contra Costa County. It's letting the voters of those counties make their own decision about whether to approve a tax increase or not. That's all this measure does. And frankly, respectfully, the administration and the Republican majority in Congress broke our system. And now you're not letting us, the counties, make their own decision on how to fix it to make sure that people are going to be able to maintain health care coverage and maintain nutrition assistance and other essential safety net services that people need. For me, it's an easy decision, but I certainly respect your perspective on this issue.
Thank you. I also want to add on to that. This is, make it really clear. This is not making the decision to increase the sales tax today. This is about allowing the voters of LA County and Contra Costa County to make that decision. And so I trust they will make the decision. I may like the outcome. Maybe I won't like the outcome. But I still trust that they have the right to vote on this, and that's what we're deciding today. We've done this with several other counties in the state. It's not the first time it's coming before us. And the voters, you know, it just reminds me of our metro system. Our voters decided several times because they saw the results. They saw that it was working. We have a public transportation system that is really wonderful. And however this potential tax increase gets handled, it's up to the voters. That's the most important thing to remember, and that's what we're voting on today, not yes or no on implementing a sales tax increase. It's on whether or not the voters get to decide. So with that, Assemblymember, you can wrap up.
Thank you, Madam Chair, and thank you for the conversation. I actually agree with my colleague from Orange County. I think this is a statewide issue, and I think when we talk about accountability, I think some of us need to be accountable for the person who's in the White House who's making the kind of decisions that have driven up our gas prices five cents a day for the last several weeks. In fact, told us just recently, a few days ago, that the financial strain on Americans is not his top concern right now, which is slightly different than what he ran on. I think the chair was very clear, and I agree with her. This is not about whether we support attacks or not. It's about whether we believe that the people of Contra Costa and the people of L.A. County have the right to step up for themselves at a time when the federal government has targeted their residents, their most vulnerable and their sickest residents. Make no mistake, if we don't allow L.A. County to have this conversation at all, a county hospital will close. And when a county hospital closed, that impacts every part of the county ecosystem, including the firefighters who have extended wall times because they have no place to take anybody. It also results in very difficult decisions. Do you cut from our fire safety and our emergency responses? Do you cut from our child welfare system and the foster children who are in it? Or do you allow our health care infrastructure, which is already not robust enough, to crumble under the weight of a federal government that has targeted it? I don't want LA County to have to make those choices when the voters are asking for the right to make a different choice. I trust them, and I think we should as well, and I respectfully ask for your aye vote. Thank you very much.
Do we have a motion? Senator Arraguin moves the bill. And, Assistant, will you please call the roll? The motion is due passed to the Senate floor. Senator Serrazo?
Aye.
Serrazo, aye. Choi?
No.
Choi, no. Arraguin?
Aye.
Arraguin, aye. Ashby?
Aye.
Ashby, aye. Cervantes?
Aye.
Cervantes, aye. Laird? Cigarto?
No.
Cigarto, no. Thank you. We're going to hold it. 4-2. We're going to hold it. The bill is on call at 4-2. He said he was going to come. Thank you. Okay. Okay. Go ahead. Yes. I'd like to. Item number one, AB 1768. The motion is do pass to the Senate floor. Senators Laird?
Laird, aye.
Thank you. 5-2. The vote is 5-2. Bill is out. Oh, oh, oh, oh, oh. This is it. Thank you to all the individuals who participate in public testimony today. If you're not able to testify, please submit your comments or suggestions to the Senate Local Government Committee. Your comments and suggestions are important to us. Thank you for your patience and cooperation. Thank you for the committee staff. Appreciate all of your work. Oh, we're adjourned. Thank you.