“NO” on 44 – Requires Community Health Clinics Spend 90% Of Revenue on Program Services

Note: this post will be periodically updated! (10/07/2026)

VOTER GUIDE – QUICK LINKS:

90%? Seriously? Clinics have to pay rent, utilities, maintenance, janitorial services, insurance and more! SEIU – We love you, but this proposition is too extreme!

Seriously, work on capping executive salaries for clinics that use public funds, if that’s the real issue!

Watch this video at the noprop44.com site.

Keep California’s safety net!

What’s the Background? Federally Qualified Health Centers (FQHCs) that receive federal funds and FQHC “look-alikes” that receive Medi-Cal/Medicaid reimbursement are operated as non-profits and serve as a safety net to provide primary and preventive care to low-income and underserved populations. Non-profit boards review and approve CEO and CFO compensation for FQHCs, and clinics already file annual IRS Form 990 reports, undergo federal and state audits, and answer to the Attorney General. A handful are genuine outliers on executive pay, but the current average spend ratio is 80% for program services and 20% for administrative and management costs. Proposition 44 would raise that bar to 90% – measured against each clinic’s total annual revenue, not its expenses. A one-time capital grant, a bequest, or the sale of a building inflates revenue for a single year and can push a clinic below the line even though its patient-care spending never changed. The question is not whether executive pay deserves scrutiny, but whether a blunt statewide formula backed by penalties is the right tool – or whether it closes the clinics our most vulnerable neighbors depend on.

What would Proposition 44 do?

  • Require non-profit FQHCs and “look-alikes” – roughly 200 organizations statewide – to spend at least 90% of their total annual revenue on program service expenses directly related to their exempt mission.
  • Authorize the Attorney General to publish guidance on which expenses count as program services – creating uncertainty about what will and won’t be a covered expense.
  • Cap administrative and management costs – including rent, utilities, insurance, and IT – at no more than 10% of revenue.
  • Assess monetary penalties equal to the difference between the 90% requirement and the clinic’s actual mission spending that year. Penalties go to a state fund, refunded only if the clinic reaches compliance within five years.
  • Allow the Department of Public Health to grant temporary waivers of the 90% requirement for exceptional circumstances or where a clinic’s finances threaten regional access to care.
  • Assess criminal penalties for directors, officers, or agents of the clinic who knowingly misreport expenditures or revenues.
  • Cost the state in the low tens of millions of dollars to enforce each year – recovered through fees on all affected clinics, not just those out of compliance – per the Legislative Analyst’s Office (LAO).
MythsFacts
Public funds are being siphoned off for bloated administrative costs and executive pay.Although the percentage varies wildly from one clinic to the next, the LAO reports that FQHC and FQHC “look-alike” clinics spend an average of about 80% of revenue on health care services. Outliers exist and should be addressed – but Prop 44 imposes one rigid formula on roughly 200 organizations to reach a handful of bad actors.
Clinics that simply spend more on patients have nothing to fear.A clinic can spend every available dollar on care and still fail, because the test measures spending against revenue. An analysis of IRS Form 990 data commissioned by the No campaign projected 183 of 202 FQHC organizations would fall short in one year.
The measure will not cut clinic funding or reduce services patients rely on.Capping management and administrative costs at 10% sweeps in rent, utilities, and IT – operating costs that clinics cannot stop paying. The No campaign’s commissioned study projects $1.7 billion in first-year penalties, pushing 161 of 183 non-compliant organizations into negative margins. The LAO, which takes no side, likewise warns some clinics might close.

Prop 44 is sponsored by: Service Employees International Union – United Healthcare Workers West (SEIU-UHW) and SEIU 721

Vote No is joined by: the California Democratic Party, Planned Parenthood Affiliates of California, CA Medical Association, and others

CADEM
Los Angeles dem. Party

https://www.pivotnetwork.org/news/2026/9/11/pivot-statement-pivot-stands-alongside-our-community-and-the-community-health-centers-that-serve-them-to-oppose-prop-44
equality CA
League of Women Voters CA
Cause action fund
NATIONAL UNION OF HEALTH WORKERSNATIONAL NURSES

NO” Recommended by the following organizations:

Physician Organizations
California Medical Association
American Academy of Pediatrics, California
American College of Obstetricians & Gynecologists District IX
American College of Emergency Physicians, California
America’s Physician Groups
California Academy of Family Physicians
California Chapter of the American College of Cardiology
California Dental Association
California Neurology Society
California Radiological Society
California Otolaryngology Society
California Podiatric-Medical Association
California Society for Addiction Medicine
California Society of Pathologists
Children’s Specialty Care Coalition
California Society of Plastic Surgeons
Kern County Medical Society
North Valley Medical Association
Northern California Rural Medical Association
Orange County Medical Association
Physician Association of California
Riverside County Medical Association
Sierra Sacramento Valley Medical Society
San Bernardino County Medical Society
San Diego County Medical Society
San Francisco Marin Medical Society
San Joaquin Medical Society
San Mateo County Medical Association
Stanislaus County Medical Society

Women’s/Reproductive Health Organizations
Planned Parenthood Affiliates of California
Black Women for Wellness Action Project
California Latinas for Reproductive Justice
Hospitals/Health Care Districts 
Association of California Healthcare Districts
California Children’s Hospital Association
California Hospital Association
Canyon Ridge Hospital
Casa Colina Hospital and Centers for Healthcare
District Hospital Leadership Forum
United Hospital Association
Torrance Memorial Health
Community Groups
Alcar Health
ABRAZAR, INC.
API Council
Asian Americans and Pacific Islanders For Civic Empowerment
Asian Law Alliance
Asian Pacific Islander Initiative
Bring California Home Coalition
California Association of Nonprofits
California Human Development
Catholic Charities San Francisco
Canal Alliance
Center for Empowering Refugees & Immigrants
Central Valley Opportunity Center
Ceres Community Project
Communities United for Restorative Youth Justice
Community Action Marin
Community Agency for Resources, Advocacy and Services
Concilio of Yolo County
Corporation for Supportive Housing
East Bay Asian Youth Center
East County Transitional Living Center
El Centro del Pueblo
Encompass Community Services
Family Paths
Equality California
First Day Foundation
Health Professionals for Equality and Community Empowerment
Hermandad Los Angeles Economic and Community Development Corporation
Hermandad Mexicana Nacional
Hijas del Campo

Inland Empire Community Health Initiative
Los Amigos de la Comunidad
La Cooperativa Campesina de California
Los Cien Sonoma County
La Luz Center
Little Tokyo Service Center
The San Diego LGBT Community Center
Mothers of East Los Angeles
NAACP California Hawaii State Conference
NAMI San Diego & Imperial Counties
North County LGBTQ Resource Center 
Omid Multicultural Institute for Development
Peers Envisioning & Engaging in Recovery Services
Proteus, Inc.
Reach Out
Sacramento Homeless Union
SF Human Services Network
San Francisco Senior and Disability Action
San Diego for Every Child
San Diego Hunger Coalition
Serving Seniors
San Diegans for Healthcare Coverage
TELACU Industries
The Los Angeles Trust for Children’s Health
Venice Community Housing Corporation
Wonder Wood Ranch

Health Care Organizations
Advocates for Community Health
Alzheimer’s Orange County
Ascend Healthcare Inc
Association of Asian Pacific Community Health Organizations (AAPCHO)
California Association of Alcohol & Drug Program – Executives
California Behavioral Health Association
California Black Health Network
California Coverage & Heath Initiatives
CalPACE
California Primary Care Association
California Primary Care Association Advocates
Cardiovascular Institute of San Diego
CBO Medi-Cal Coalition
The Behavioral Health Collaborative of Alameda County
Health Improvement Partnership of Santa Cruz County
Heart & Wellness Center
Liver Coalition of San Diego
National Association of Community Health Centers
National Association of Social Workers, California Chapter
Valley Care Community Consortium
Vision y Compromiso
UHC Solutions

Labor
California Teachers Association
Peace Officers Research Association of California

Education/Youth
California Alliance of Child and Family Services
California Association of School Counselors
California School Nurses Organization
California School-Based Health Alliance

Political Organizations
Avance Democratic Club
California Democratic Party
California Republican Party
California Working Families Party
Courage California
Democratic Party of Sacramento
Democratic Party of Orange County
Indivisible Marin Steering CommitteeIranian American Democrats of California
League of Women Voters of California
Libertarian Party of California
Los Angeles County Young Democrats
PICO California Action Fund
Progressive Democratic Club
PowerCA ActionSan Diego County Democratic Party
Santa Clara County Democratic Party
Solano County Democratic Central Committee
United Democratic Club of San Francisco

Local Government
City of Escondido
Business
California Chamber of Commerce
Carlsbad Chamber of Commerce
LA County Business Federation
LAX Coastal Chamber of Commerce
Sacramento Metropolitan Chamber of Commerce
Santa Cruz Area Chamber of Commerce
San Diego Regional East County Chamber of Commerce
San Jose Silicon Valley Chamber of Commerce
San Marcos Chamber of Commerce
West Ventura County Business Alliance

Community Health Centers & Clinics
AACI
Achievable Health
Alameda Health Consortium
Alcar Health
Aliados Health
All-Inclusive Community Health Center
AltaMed
Altura Center for Health
Ampla Health
Anderson Valley Health Center
Angeles Community Health Center
APLA Health
Aria Community Health Center
Arroyo Vista Family Health Center
Asian Americans for Community Involvement (AACI)
Asian Health Services
Asian Pacific Health Care Venture, Inc.
Axis Community Health
BARTZ-Altadonna Community Health Center
Baywell Health (formerly West Oakland Health Council)
Big Sur Health Center
Blessing Community Health
Calexico Wellness Center 
Camarena Health
Camino Health Center
Castle Family Health Centers
Celebrating Life Community Health Center
Central Neighborhood Health Foundation
Central Valley Health Network
Chinatown Service CenterClinica De Salud Del Valle De Salinas
Clinica Monsenor Oscar A. Romero
Clinicas del Camino Real
Coalition of Orange County Community Health Centers
Communicare + OLE
Community Clinic Association of Los Angeles County
Community Health Association Inland Southern Region
Community Health Partnership
Community Health System
Community Medical Centers Inc.
Complete Care Community Health Center
Comprehensive Community Health Centers
DAP Health
Davis Street Community Health Center
Dientes Community Dental Care
East Valley Community Health Center, Inc.
Eisner Health
El Dorado Community Health Centers
El Proyecto del Barrio, Inc.
Elica Health Centers
Equity Health
Families Together of Orange County
Family Health Care Centers of Greater Los Angeles
Family Health Centers of San Diego
Father Joe’s Village
Friends of Family Health Center
Gardner Health Services
Garfield Health Center
Greater Fresno Health Organization, Inc
Golden Valley Health Centers
Harbor Community Health Centers
Harmony Health Medical Clinic and Family Resource Center
Health Alliance of Northern California
Health and Life Organization, Inc. – Sacramento Community Clinic – Explorer 
Health Center Partners of Southern California
HealthRIGHT 360
Herald Christian Health Center
Hill Country Community Clinic
Hurtt Family Health Clinic, Inc.
Indian Health Council, inc. 
Inland Behavioral Health Services
Innercare
JWCH Institute/ Wesley Health Centers
Kedren Community Health Center
Korean Community Services
Korean Health, Education, Information & Research Center
La Clinica de La Raza, Inc.
La Maestra Community Health Centers
Livingstone Community Health Clinic
Long Valley Health Center
Los Angeles Christian Health Centers
Marin Community Clinics
Mendocino Coast Clinics
Mendocino Community Health Centers
Mission City Community Network
Mission Neighborhood Health Center
Mountain Valley Health Centers
Neighborhood Healthcare
Nhan Hoa Comprehensive Health Care Clinic
North Coast Clinics Network

North East Medical Services (NEMS)
Northeast Valley Health Corporation
Northeastern Rural Health Clinics
Obria Medical Clinics of Southern California
One Community Health
Open Door Community Health Centers
OPSAM Health
Parktree Community Health Center
Peach Tree Healthcare
Peninsula Healthcare Connection, Inc.
Petaluma Health Center
Prime Wellness Community Health Center
Redwood Coast Medical Services
Redwoods Rural Health Center
Roads Foundation
Saban Community Clinic
SAC Health
Samuel Dixon Family Health Center, Inc.
San Benito Health Foundation
San Fernando Community Health Center
San Francisco Community Clinic Consortium
San Ysidro Health
Santa Barbara Neighborhood Clinics
Santa Cruz Community Health Centers
School Health Clinics of Santa Clara County
Share Our Selves Corporation
Shasta Cascade Health Centers
Shasta Community Health Center
Shingletown Medical Center
Sierra High School: School Based Health Center
Fairchild Medical Center
Sonoma Valley Community Health Center
Southern Indian Health Council
South Central Family Health Center
Southside Coalition of Community Health Centers
St. Jude Neighborhood Health Centers
Tarzana Treatment Centers
TCC Family Health
The WeCare Group
TrueCare
UMMA Health

Unicare Community Health Center
United Health Centers of the San Joaquin Valley
Universal Community Health Center
Valley Community Healthcare
Venice Family Clinic
Via Care Community Health Center
Vista Community Clinic
Watts Health Center
WellSpace Health
West County Health Centers, Inc.
Western Sierra Medical Clinic – Grass Valley
Westside Family Health Center
White Memorial Community Health Center
Wilmington Community Clinic
Winters Healthcare Foundation

“YES” Recommended by

San Diego & Imperial Counties Labor CouncilCentral Coast Labor Council
IFPTE Local 21AFL-CIO Inland Empire Labor Council