California lawmakers are bracing for larger Medicaid costs next year as the state borrows billions from itself to cover the rise in health care coverage for illegal immigrants. 

Governor Newsom’s Department of Finance notified state lawmakers last week that it had dipped into the General Fund to borrow $3.44 billion, the maximum amount borrowable by law, to cover payments to health care providers from Medi-Cal, the state’s Medicaid program. The sum represents 10 percent of the total amount designated for Medi-Cal from state funding.