California Governor Jerry Brown on Thursday filed an emergency petition with the state’s Board of Equalization to slash Medicaid by $1.2 billion, the biggest Medicaid cuts since 2009.
Brown has called the cuts “an enormous crisis.”
The state’s Department of Finance estimates that California’s Medicaid population will decline by about 10.7 percent over the next decade, while the state would lose nearly $6 billion in economic activity.
The state will lose more than $1 billion in revenues over the same period, with the average monthly bill expected to jump to $1,966.
That would make California the second-largest state in the country with a net loss of about $1 million per month.
The $1-billion cut would apply to state programs that help low-income adults pay for medical expenses and help families get through difficult times.
Brown has proposed cutting $5.5 billion from the programs over the coming decade.
“California is a state with a deep-rooted economic and social crisis.
It is time to do what we can to end this crisis and make our state a better place to live, work, and raise families,” Brown said in a statement.
The California legislature approved the budget last week, but Brown is expected to sign it into law this week.