Calling it a “Tough budget for tough times,” Governor Jerry Brown released the first spending plan of his third term less than one week after being sworn into office. The Governor’s Budget proposes total spending of $127.4 billion for the 2011-12 fiscal year, $84.6 billion of which is from the State’s General Fund.
The spending plan seeks to eliminate an 18-month budget gap, estimated at $25.4 billion, with $12.5 billion in spending reductions, $12 billion in taxes, and $1.9 billion in other solutions.
The major program cuts proposed include $1.7 billion to Medi-Cal, $1.5 billion to California’s welfare-to-work program (CalWORKs), $750 million to the Department of Developmental Services, $500 million to the University of California, $500 million to California State University, and $308 million for a 10 percent reduction in take-home pay for some state employees. Brown also plans to trim state government operations by $200 million through a variety of actions, including reorganizations, consolidations and other efficiencies.
The Governor is starting with cuts in his own office. He has ordered an immediate cutback of 25% ($4.6 million) in his own staff operations, eliminated the Office of Secretary of Education ($7 million), and used only 16% of the funds budgeted for the Gubernatorial Transition.
The taxation proposal in the budget calls for an election in June 2011 where voters will be asked to continue personal income and sales taxes as well as the Vehicle License Fee rate, both of which are set to expire this year, for an additional five years. Finally, the budget also requires all corporations to use a single sales factor when measuring income attributable to California.
Click here for full information on Governor Brown’s budget proposal.
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