Department of Finance: January Budget Was 'Snapshot in Time' — May 14 Revise Will Carry FULL H.R. 1 Fiscal Impacts (Material New Cuts Likely)

California Department of Finance officials told the Assembly Budget Subcommittee 1 (April 6, 2026 hearing) that the January Governor's Budget did NOT account for the full fiscal impacts of H.R. 1 — that those numbers will land in the May 14 Revise. ~500K Californians are projected to lose coverage in FY26-27 with no current backfill plan in the January baseline. LAO is on record explicitly recommending the Legislature avoid Medi-Cal final decisions until May 14. Total Medi-Cal projected to hit $222B / $49B GF — the highest ever — but without yet pricing in disenrollment churn, work-requirement administrative load, redetermination doubling, or county-administration capacity gaps. Strategic implication for FQHC executives: do NOT plan FY26-27 off the January budget. Expect material new cuts, restructured taxes, or revenue-raising proposals on May 14. CFOs should hold off final budget submissions to boards until after the May 14 release; CMOs should hold off on staffing model changes until DHCS publishes post-Revise UIS PPS / 6-month redetermination implementation guidance. The May 14 → May 15 Senate Appropriations suspense window is the single most important 24 hours of the FY26-27 budget cycle for FQHCs.