State Health and Social Spending

A proposed California ballot initiative backed by SEIU‑United Healthcare Workers West would impose a one‑time 5% wealth tax in 2027 on the state’s roughly 255 billionaires, raising what the Legislative Analyst’s Office says could be tens of billions of dollars, with about 90% of proceeds earmarked for health care and the rest for food assistance and education. The measure would tax assets such as businesses, stocks, bonds, art and intellectual property (excluding real estate and most retirement accounts), is framed by sponsors as a way to backfill an estimated $190 billion, decade‑long Medi‑Cal shortfall from federal Medicaid cuts, and is drawing opposition from Gov. Gavin Newsom and wealthy investors like Bill Ackman who warn it could drive billionaires out of the state.