Proposition 56

In November 2016, the citizens of the State of California passed Proposition 56 (Prop 56), establishing the California Healthcare, Research & Prevention Tobacco Tax Act of 2016. In the statute, $40 million annually is provided to the University of California to “sustain, retain, and expand” Graduate Medical Education (GME) programs in California in order to increase the number of primary care (family medicine, internal medicine, obstetrics & gynecology and pediatrics) and emergency physicians in the state based on demonstrated workforce needs and priorities. Additionally, University of California Health (UCH) will review physician shortages across the state. Based on the review, funds may be used to expand GME programs that are intended to address such shortages.

In 2017-18, UC received $50 million from Proposition 56 funds to offset a $50 million reduction in State General Funds that the University had previously received. The University allocated these funds across five UC campuses to support graduate medical education programs, which train new primary care and emergency physicians each year.

In 2018, University of California Health (UCH) entered into a Memorandum of Understanding (MOU) with Physicians for a Healthy California (PHC) for the purpose of developing, administering, and managing a statewide Graduate Medical Education (GME) grant program (known as the “CalMedForce Program”) created and funded by Prop 56.

It was legislatively mandated that “each state agency and department receiving funds pursuant of this act shall, on an annual basis, publish on its respective Internet Web site and accounting of how much money was received from the California Healthcare, Research and Prevention Tobacco Tax Act of 2016 Fund and how that money was spent.

Use of Proposition 56 Funding

Annual Workforce Review

2020 California's Psychiatry Workforce Challenges (pdf)

2021 The State of California's Physician Workforce (pdf)

2022 Annual Report: Trends in Utilization of Urgent Care and Telehealth Services (pdf)

2022 Annual Report: Update on California's Physician Workforce (pdf)