$1.8 Billion Error Adds To California Deficit Projection

SACRAMENTO, Calif. (AP) – Gov. Jerry Brown’s administration miscalculated costs for the state Medi-Cal program by $1.9 billion last year, an oversight that contributed to Brown’s projection of a deficit in the upcoming budget. The administration discovered accounting mistakes last fall but did not notify lawmakers until last week. The Medi-Cal program is jointly funded by the state and federal governments. The Department of Finance says it did not account for $487 million in rebates from drugmakers the state owes the federal government. The state also miscalculated $1.5 billion for the Coordinated Care Initiative, an experimental program in seven counties. Officials double-counted some of the expected savings and undercounted costs in two counties. Finance spokesman H.D. Palmer says the agency followed its normal practice by waiting to report the errors in the next budget.

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