SACRAMENTO (AP) — One of California’s chief budget writers says the state is bracing for a much smaller budget surplus next year because of its ongoing feud with the Trump administration about a tax involving Medicaid.
Nearly $2 billion of California’s projected $7 billion surplus would come from a tax on the companies that manage the state’s Medicaid program.READ MORE: Supply Chain Issues: 'There Really Are Problems Everywhere,' Even For Small Companies
But California needs permission from the Trump administration to impose the tax.READ MORE: Thousands In Bay Area Still Without Power Following Bomb Cyclone, Atmospheric River
State Assembly Budget Committee chairman Phil Ting told reporters Monday that lawmakers are not planning on the federal government approving the tax, saying the Trump administration has tried to thwart many of the state’s policy goals.MORE NEWS: Deputies: 4 Women Sought In Robbery Of Millbrae Halloween Store
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