February 21, 2018

Gov. Jerry Brown's latest budget at a glance

13 May 2017, 10:44 | Rex Hubbard

Gov. Jerry Brown unveils his revised state budget on Thursday at the state Capitol

Gov. Jerry Brown unveils his revised state budget on Thursday at the state Capitol

"Over the past four years, we have increased spending by billions of dollars for education, health care, child care and other anti-poverty programs", he said in a release on the California government website. Though this would be a slight 1.4 percent increase from last year's general fund budget, it nevertheless represents record spending levels. "In the coming year, I don't think even more spending will be possible", said Governor Brown. "That is a staggering figure, it would be more than the state spends on higher education and corrections combined".

The California Academy of Family Physicians (CAFP) wasn't happy that the revised budget continues the January proposal's planned cut of more than $33 million next fiscal year for physician training.

Under current law, with the end of the Coordinated Care Initiative, county realignment funds would experience an increase in annual IHSS costs of about $600 million.

"Spending has gone up far more than anybody ever imagined", Brown said, citing a tax increase and improving economy. "Paying off future debt now is much smarter than creating new programs that inevitably are cut when budgets get tight again".

"That's why we are going to fight it", he said, blasting Republicans who voted for Trump's health care bill and turned their backs on constituents who rely on federally funded healthcare. "Voters were promised that these tax revenues would be used to pay for health care, dental care and education, yet the Governor's plan ignores that and redirects it for other purposes".

As California copes with a tempering of the revenue growth that's helped it reverse crippling budget deficits, it must also contend with uncertainty about federal policies on taxes and health care, which could squeeze its finances. This is based primarily on higher capital gains.

The release of Brown's revised $124 million spending plan kicks off a month of negotiations with the Democrat-controlled Legislature that must approve a budget by June 15.

Meanwhile state Senate Republican Leader Patricia Bates called the proposal a "lemon of a budget" saying that the state could not afford its increased spending.

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Reducing Pension Liabilities: The May revision proposes a $6 billion supplemental payment to CalPERS with a loan from the Surplus Money Investment Fund - a step that saves the state $11 billion over the next two decades while continuing to reduce unfunded liabilities and stabilize state contribution rates.

Brown is withholding $50 million from the UC system after a state audit found administrators hid $175 million in a secret account while asking students for more tuition money. Administration officials say under a bill passed by the House last week federal funding for Medi-Cal would fall by $6 billion in 2020 and by $24 billion by 2027.

For K-12 schools, Brown's budget calls for spending to increase by about $4,058 per student over levels from the 2011-12 school year. The reason is simple.

"We want the activists, we want the parents and the teachers to go to their local boards and put the pressure on them, using the transparent accountability plan", he said, explaining that advocates no longer need to go to Sacramento to lobby for specific expenditures.

Update 1:08 p.m.: California lawmakers are reacting in predictable ways, after Governor Jerry Brown released his revised spending proposal for the upcoming year.

President Donald Trump is also pressing for cuts to corporate and income taxes and eliminations of deductions that benefit residents in highly taxed states like California. As a result, revenue for the first 10 months of this fiscal year fell short by $136 million.

He announced Thursday a revised outlook for the budget year that starts July 1.

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