|Governor Brown’s May Revision Released|
, “Lower tax revenues, coupled with federal government obstructions that blocked billions in necessary cuts, have created a deeper budget hole. More painful reductions will be necessary as a result, but education and public safety must be protected.”
To make up the difference, the governor has proposed an additional $4.1 billion in cuts from his January budget to state employee compensation, welfare, health care, higher education, courts, and other government programs. He also stressed that cuts alone will not solve the problem, and that additional revenue must be found in order to close the gap. The governor’s initiative on this November’s ballot seeks to provide this additional revenue through temporary tax increases but can only be implemented if approved by the voters. If the governor’s tax initiative does not pass, an additional $6 billion in cuts will go into effect January 1, 2013.
The May Revision proposes legislation that creates a framework for successor agencies of RDAs to transfer cash assets not obligated or reserved for legally authorized purposes to cities, counties, special districts, and K-14 schools in 2012-13. These funds will be allocated consistent with the State Constitution.
Other key details of the revised budget include an increase in K-12 education funding by 16 percent from last year (subject to voter approval), protection for public safety through a permanent funding structure for local governments implementing realignment, a five percent cut to state employee compensation costs, and finding alternative funding sources for trial courts. To see the complete, revised budget click here or visit the Department of Finance’s budget website at www.dof.ca.gov/budget.