California Senators Float Tax for Firms With Workers on Medi-Cal

California labor groups are working to get a one-time billionaire’s tax on the ballot in November to cover health care funding gaps. The state’s Senate will soon look at another option for offsetting shortfalls.

Senate Democrats included in their proposed budget Thursday a new tax on large companies whose employees are enrolled in the state’s health care plan for low-income residents, Medi-Cal.

“In a difficult time when the state is dealing with a structural problem, we worked hard to ensure the solutions did not fall on the backs of our most vulnerable communities,” said state Sen. Caroline Menjivar (D), chair ...