Wednesday, March 2, 2011

Key Points in Governor Brown's Proposed Budget


The budget Gov. Jerry Brown proposed in January includes program cuts, a June election to extend tax increases and a reordering of state and local government to close a deficit he estimated at $26.4 billion. The goal was to achieve a balance of +/- $12.5 billion in cuts and $12.5 billion in revenue.

Here are some of the elements:


Education: Provide K-12 schools with roughly the same spending as the current year. If June tax extensions fail, schools would likely see significant cuts.

Higher education: Cut $500 million each from UC and CSU systems. Savings: $1 billion.

Redevelopment: Eliminate hundreds of local redevelopment agencies, eventually redirecting property tax revenue they receive to cities, counties and schools. Savings: $1.7 billion.

Proposition 10: Ask voters to use cigarette tax money that now goes to First 5 commissions to pay for Medi-Cal services for children up to age 5. Savings: $1 billion.

Healthy Families: Increase premiums for families with incomes above 150 percent of the federal poverty level; increase co-pays for emergency room visits from $15 to $50; establish co-pays for hospital stays to $100 a day ($200 maximum per stay); eliminate vision care; make permanent fees paid by managed care plans. Savings: $135.7 million.

Welfare: Decrease time limits for CalWORKS recipients from five years to four years; cut grants for a family of three from $694 to $604 a month; continue reduced funding to counties. Savings: $1.5 billion.

Child care: Eliminate services for 11- and 12-year olds; decrease eligibility for subsidy from 75 percent of state median income to 60 percent. Savings: $750 million.

SSI-SSP: Cut grants to the federal minimum (by $15 a month, from $845 to $830) for low-income elderly, blind and disabled individuals in the program. Savings: $192 million.
In-home care: Reduce the number of hours In-Home Supportive Services workers could care for elderly and disabled residents by 8.4 percent across the board; require physician certification for all clients; cut domestic services in cases in which caregivers live in the same home as recipients. Savings: $486 million.

Developmental services: Make deep cuts to the system of 21 regional centers that oversee care for the developmentally disabled. Savings: $750 million.

Mental health: Use voter- approved Proposition 63 money to replace general fund money now spent on mental health programs. Savings: $861 million.

Foster care: Eliminate transitional housing aid for 18- and 19-year-olds. Savings: $19 million.

Governor's Office: Reduce budget by 25 percent; eliminate education secretary. Savings: $6.4 million.

Libraries: Cut most state funding for local libraries. Savings: $30.4 million.

Cal Fire: Eliminate the fourth firefighter on each engine, returning staffing to 2003 levels. Savings: $34.3 million.

Fairs: Cut all state funding for county fairs. Savings: $32 million.


Taxes: Ask voters in June to extend 2009 increases to sales, vehicle and income taxes for five years. Revenue: $11.2 billion over 18 months, $5.9 billion of it for local governments.
Corporations: Require all multistate businesses to calculate their tax liability solely on their sales in California. Businesses could no longer use an old formula that accounted for property and payroll size. Revenue: $1 billion.

Enterprise zones: Eliminate business tax relief in depressed areas that have been designated as enterprise zones. Revenue: $924 million.

Transportation: Use truck weight fees for debt service on state transportation bonds, circumventing Proposition 22's restrictions on taking local transportation dollars. Revenue: $1 billion.


Borrowing: Continue borrowing from special funds and take a portion of Indian gambling revenue to general fund. Revenue: $1.4 billion.

Amnesty: Settle pending corporate and personal income tax shelter cases. Revenue: $220 million.

Unemployment: Use the state disability fund to lend money to cover interest on borrowing for the deficit-ridden Unemployment Insurance fund. Revenue: $362 million.


Juveniles: Eliminate the state Division of Juvenile Justice by June 2014, instead sending money to local governments to house juvenile offenders. Savings: $78 million by June 30, 2012; $250 million ultimately.

Adult prisoners: Low-level, nonviolent, non-sex offenders without serious prior convictions would be housed in county jails. Money would be sent to local governments to increase jail capacity and bolster rehabilitation programs. Savings: $486 million by June 30, 2012: $1.4 billion ultimately.

Mandates: Reduce the number of services local governments are required to provide and perhaps give them greater latitude to raise revenue to pay for them. Savings: $372 million.

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