In a move that has drawn both support and skepticism, California Governor Gavin Newsom’s administration is seeking a hefty $2.8 billion bailout for the Medi-Cal program, which provides healthcare to low-income residents, in addition to a previously requested $3.4 billion. This financial endeavor has raised eyebrows, especially considering that Medi-Cal has already expended $9.5 billion on health services for undocumented immigrants this year.
Newsom, addressing a gaggle of reporters, pinpoints the expansion of taxpayer-funded healthcare to undocumented immigrants as a contributing factor to this financial request. “It’s partial,” he noted, emphasizing his commitment to universal healthcare, which he describes as a fundamental principle of his governance.
However, the governor remains steadfast against reversing this expansion, claiming it is not on his “docket,” yet he has expressed openness to “changes.”
Currently, California is home to an estimated 1.9 million undocumented immigrants. With Medi-Cal’s spending on their healthcare averaging around $5,000 per individual this year, the financial implications are significant.
The typical undocumented worker in California earns about $13 per hour, which translates to an annual income of approximately $27,040 if they work full-time. If this income were subject to taxation, it would yield around $464 in state income taxes. Additionally, assuming that about 30% of their remaining income goes towards rent, they might contribute another $1,372 through state sales taxes.
In total, a working undocumented immigrant could contribute roughly $1,846 in state taxes each year—substantially less than the $5,000 Medi-Cal spends on their healthcare, not to mention the additional costs associated with programs like CalFresh, which provides nutritional assistance.
This fiscal reality has not gone unnoticed by critics, particularly among Trump-era Republicans, who argue that undocumented immigration is a financial burden on the state. They highlight the stark contrast between the high costs of services utilized and the relatively low tax revenue generated from even the employed and single undocumented individuals.
Assemblyman Bill Essayli, R-Corona, has been vocal in his criticism, asserting that Newsom’s commitment to providing free universal healthcare for undocumented immigrants is a reckless strategy that threatens California’s financial stability. “Newsom is doubling down on bankrupting CA,” he stated, questioning the governor’s fitness for leadership at both the state and national levels.
Syndicated with permission from The Center Square.
