Proposition
44Requires nonprofit community health clinics to spend 90% of revenue on health care services
Our readLean no
Clinics must spend 90% of revenue on care. The pay problem is real, but the sponsor union allegedly offered to drop it for members.
Key findings
- The pay problem is real. In 2024 the CEOs of AltaMed and North East Medical Services each made about $1.95M. Three other clinic CEOs made $667K to $730K. [1]
- None of the 7 clinics funding the No campaign meets 90%. Their combined ratio is 77.4% on $3.28B in revenue, and two are under 65%. Several ran 14–17% surpluses. [1]
- LAO: clinics report spending an average of about 80% of revenue on health care services, though it varies by clinic. [2]
- The sponsor is a union that tried the same rule as a bill (AB 1113), which died in committee (filed away Feb 2, 2026). [3][4] Clinics allege in federal court that it offered to drop Prop 44 for union membership. The union calls that "categorically false." [3]
- The same union is behind Prop 40 [3], and its dialysis measures failed three times (43%, 37%, 32% yes in 2018, 2020, 2022). [5]
Track record
Clinics funding the No side (2024 filings)
| Clinic | Share of revenue on program services | Notes |
|---|---|---|
| AltaMed | 83.9% | $1.72B revenue; CEO $1.95M; gave $6.1M to No |
| WellSpace Health | 77.9% | 16.6% surplus |
| TrueCare | 73.8% | CEO pay in the $667K–$730K range |
| North East Medical Services | 73.5% | CEO $1.95M (over $1M of it deferred/retirement) |
| Neighborhood Healthcare | 72.0% | 14.4% surplus |
| Innercare | 64.7% | 29.8% on management and fundraising |
| Family Health Centers of San Diego | 64.5% | 16.3% surplus |
| Single-year numbers can include one-time items like capital grants, and the Attorney General would decide what counts. [1][2] |
Money and conflicts
- Yes $16.9M, all from SEIU-UHW. No $38.6M, led by AltaMed ($6.1M) and the clinic association. [6][1]
- Both sides have a stake. The clinics are fighting a rule they'd fail. The union represents health workers and has sponsored initiatives aimed at health care employers before (the dialysis measures).
- The clinic association's claim that "nearly half of clinics could close" (with $1.7B in first-year penalties) comes from a study it paid for. [3]
Does it solve a lasting problem?
- It targets a real issue (executive pay, surpluses, overhead) with a blunt rule. It's unclear exactly which costs would count as health care services; the Attorney General would define that. [2] A disclosure-and-audit approach could address pay without risking clinic cuts.
If you vote yes: accountability
Bottom line: The Attorney General would define what counts as "health care services," and that definition decides which clinics pass. [2] The clinics fighting the measure combined spend 77.4% of revenue on care, so watch whether they cut overhead or care. [1]
Who's accountable
- The Attorney General writes the definitions. That race (Bonta vs. Gates) is on this ballot.
- The state checks compliance using the financial reports clinics already file with the federal government, and collects fees from clinics to cover enforcement. The measure doesn't name a department. [2]
- Clinic boards. Most are private nonprofits, so they aren't covered by the Public Records Act, but their federal tax returns (Form 990s) are public.
What to watch
- Waivers: the measure allows temporary waivers, but doesn't say who grants them or on what grounds. [2]
- Whether clinics close or cut services, as the clinic association predicts (in a study it paid for), or whether executive pay and surpluses shrink. [3]
Who to press, and what to ask for
- Attorney General candidates: will the definitions of "health care services" be written in public, with draft rules and comment periods?
- Your local clinic's board: ask for its ratio of care spending to revenue, and its executive pay, both reported on its Form 990.
Records to look up
Anyone can file a California Public Records Act request (the state's version of FOIA), with no reason required. Agencies must respond within 10 days, or 24 in unusual cases. [7] For private clinics, use public Form 990s instead, which you can search on ProPublica's Nonprofit Explorer. [8]
To the Attorney General's office (after passage): Under the California Public Records Act (Gov. Code § 7920.000 et seq.), I request all draft definitions, public comments, and communications with clinic operators or SEIU-UHW about defining health care services under Proposition 44.
What it does
- Private nonprofit safety net clinics must spend at least 90% of revenue on health care services, with other costs like administration capped at 10%. California has about 2,000 safety net clinics in all. [2]
- A shortfall is paid as a penalty. It's refunded if the clinic complies within 5 years; otherwise it goes to clinic workforce programs. Waivers are possible. [2]
- State enforcement costs run in the low tens of millions a year, paid by clinic fees. [2]
Both sides
- For: SEIU-UHW. It would put more money into patient care and less into executives, which matters more as federal cuts hit.
- Against: the clinic association, CMA, Planned Parenthood [6], the Hospital Association, the Democratic, Republican and Working Families parties, and the editorial boards of the Sacramento Bee, SF Chronicle, OC Register and SD Union-Tribune. They say it would cut services or close clinics. [3]
- Poll: about 1 in 3 support it (PPIC, Sept 2026). [3]
Sources 13
- ^ a b c d e California Today, Prop 44 guide with Form 990 data californiatoday.com Other
- ^ a b c d e f g h i LAO, Prop 44 analysis Legislative Analyst Official
- ^ a b c d e f g CalMatters, union and Prop 44 (Oct 7, 2026) CalMatters Reporting
- ^ Digital Democracy, AB 1113 status calmatters.digitaldemocracy.org Reference
- ^ SoS Statement of Vote, 2018 Prop 8 elections.cdn.sos.ca.gov Official
- ^ a b Official Voter Guide, Prop 44 arguments vig.cdn.sos.ca.gov Official
- ^ First Amendment Coalition, CPRA deadlines firstamendmentcoalition.org Other
- ^ ProPublica Nonprofit Explorer (Form 990 search) projects.propublica.org Other
- · CalMatters guide, Prop 44 CalMatters Reporting
- · SoS, Prop 44 contribution totals (through Oct 22, 2026) Secretary of State Official
- · SoS Statement of Vote, 2020 Prop 23 elections.cdn.sos.ca.gov Official
- · SoS Statement of Vote, 2022 Prop 29 elections.cdn.sos.ca.gov Official
- · Wikipedia, SEIU-UHW history (secondary) Wikipedia Reference