“Fiscal discipline is not the enemy of democratic governance, but rather its fundamental predicate.” Governor Jerry Brown, January 10, 2013
“The deficit is gone,” is the major headline coming out of Governor Jerry Brown’s release of his 2013-14 spending plan. But that surprising declaration is backed by some major hedging – it only comes to fruition if all goes well with expected revenue from the federal government, that new taxes recently passed by voters come in at planned levels, and that the price tag of health reform is not beyond the numbers penned by budgeteers.
In a press release the Governor stated, “The budget cuts made in the last two years and the passage of Proposition 30 make it possible to both live within our means and to increase funding for education.”
When Governor Brown took office, the state faced a $26.6 billion budget deficit and estimated annual gaps of roughly $20 billion. The first two state budgets under Governor Brown’s watch eliminated these deficits with billions of dollars in cuts as well as temporary revenues. The 2011-2012 and 2012-2013 budgets provided three dollars of spending cuts for every dollar in temporary tax revenues approved by the voters.
To maintain the fiscal stability that has been achieved, the budget reflects the continuation of spending cuts made in the last two years, continues to pay down the “wall of debt,” and recognizes risks that remain.
Click here to read the full statement from the governor and get more information about the budget.
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