Friday, May 13, 2011

Public Policy Insights for the Archdioces​e of Los Angeles - California Catholic Conference : Budget Debate

Budget Debate to Re-ignite Next Week


With the Governor scheduled to revise his budget proposal on Monday, Republican lawmakers released their own version of the budget this week – something they have not done since California first entered the current fiscal crisis more than four years ago.

Rejecting any tax extension, the GOP proposal eliminates reserves for First 5 (children’s health) and mental health programs. Both those moves would require voter approval but each was rejected during a 2009 special election. (Ironically, that’s the same election which Republicans point to as already rejecting the tax extension.) The plan would also cut state employee costs by 10 percent without specifying a mechanism and eliminate many of the duties of re-development agencies, siding at least partially with the Governor.

Even taking into account the $2.5 billion unexpected increase in revenue reported last week, the proposal still leaves a $6 to $7 billion deficit which the Republicans would address through additional cuts to health and social services programs. Many in Sacramento assumed that both the Governor and GOP would give the increase in revenue to education. And, in fact, the Republican plan does just that, except for $450 million allocated to law enforcement. (Such a choice – between education and law enforcement – illustrates just how basic and difficult the budget decisions are for California.)

The Governor’s May Revise was scheduled for release today but has been delayed until early next week. The Capitol has been “occupied” this week by advocates for the teacher’s union and a variety of other causes.

For more information, contact Steve Pehanich, spehanich@cacatholic.org.

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