Wednesday, January 11, 2017

State budget announced (with video)

Governor Brown released his 2017-18 budget plan Tuesday January 10 amid deep uncertainty about how the state finances will be impacted by President-Elect Donald Trump's spending priorities.

It's down 2% from the current budget, but we're likely to see major changes when the governor revises his budget in May

For human services, California would spend roughly the same amount it’s spending this year. It would spend about $800 million more to cover the loss of some federal funding for the projected 4.1 million people added to the Medi-Cal rolls since 2014. The budget does not take into account the possibility that Congress will repeal and replace Obamacare with a law that provides less federal funding for that expansion than presently expected.

In Santa Barbara County, about 140,000 people, or one-third the population, now have health insurance through Medi-Cal. In rural and inland counties, the percentage is even higher: 55% in Tulare, 51.5% in Merced, 49.9% in Fresno (per California Budget Policy Center study).

Missed the live broadcast of the Governor’s budget announcement? No worries, we recorded it for you here: https://www.screencast.com/t/nOkgiGmFO

A more detailed analysis from the California Budget & Policy Center, and a link to register for their January 18 webinar, follows after the jump.




First Look: The Governor's Proposed 2017-18 Budget
The California Budget & Policy Center has published our "first look" analysis of the proposed 2017-18 budget that Governor Brown released this week. The executive summary of our report is below.

Also, we're pleased to announce that the Budget Center will hold a webinar on Wednesday, January 18 from 1:00 to 2:00 p.m. to discuss the Governor's proposed budget and the issues that will shape this year's budget debate. Executive Director Chris Hoene and our team of analysts will talk about the Governor's budget proposal and take your questions. Sign up for the webinar now.
 



Restrained Budget Proposal Reflects Uncertainty About Federal Commitments and Economic Conditions

Full report | Media statement (1/10/17)

On January 10, Governor Jerry Brown released a proposed 2017-18 budget that reflects both deep uncertainty about looming federal actions and a tempered economic and fiscal outlook for the state. The Governor forecasts revenues that are $5.8 billion lower — over a three-year period — than previously projected and proposes taking steps to address a $1.6 billion projected shortfall for 2017-18. The Governor’s proposal assumes current federal policies and funding levels, even as the Affordable Care Act and other federal programs face the prospect of cuts with President-elect Trump taking office.
As part of addressing the deficit that his Administration foresees, the Governor proposes to rescind several one-year spending commitments that had been part of the 2016-17 budget agreement, including $400 million for affordable housing programs and $300 million for renovation of state office buildings. The Governor also proposes to “pause” a multiyear plan for reinvesting in the state’s child care system.
The Governor’s proposal calls for continued funding of the California Earned Income Tax Credit (CalEITC) and also reflects the state’s increased minimum wage. However, this restrained budget proposal contains no additional investments in the welfare-to-work system (CalWORKs) or in basic income support for low-income seniors and people with disabilities (SSI/SSP). In addition, the Governor’s budget does not include proposals to address California’s affordable housing crisis.
The Governor’s proposal continues modest increases in funding for the California State University and University of California, but also reduces certain student aid programs. Lower revenue projections also mean slower growth in the Proposition 98 minimum guarantee for K-14 education spending.
The Governor’s proposal includes setting aside $2.3 billion as constitutionally required by Prop. 2 (2014), with half deposited in the state’s rainy day fund and half used to pay down state debts. Under the Governor’s proposal, state reserves would total $9.5 billion by the end of 2017-18.
With the near-term state budget facing many uncertainties, it is critical that California’s Congressional delegation and state lawmakers seek to protect the Affordable Care Act and the social safety net, and that state lawmakers ensure that California is well positioned to invest over the long term in education, child care, affordable housing, and other public services that help Californians advance economically.
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