Friday, June 17, 2016

California budget approved, Fiscal Year 2016/17


Los Angeles Times/Chris Megerian, 6/15/16. "California Legislature approves $171 billion state budget."

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2016 Budget Passed, next...

"With concerns about the potential for another recession casting a shadow over this year’s budget negotiations, California lawmakers approved a new $170.9-billion spending plan on Wednesday (6/15/16) that increases some funding for social services but stashes more away in a rainy-day fund.


Although lawmakers are finishing their work on this year’s budget, some of the most consequential decisions for the state’s financial future may not be made until the November election. Voters will likely be asked whether to extend higher taxes on the wealthy, increase the levy on cigarettes or borrow billions of dollars to build and renovate schools. It’s a classic example of California’s dual-track system for managing its finances, with some decisions made in the Capitol and others at the ballot box. “It’s ultimately up to the people of California to make their own decision,” said Senate leader Kevin de León (D-Los Angeles).

 ....  The governor successfully convinced lawmakers to stash an extra $2 billion into the rainy-day fund, bringing the total to an estimated $6.7 billion by next summer. The budget includes another $1.75-billion cushion in case revenue runs lower or spending is higher than expected."  Read article.


Reference, State of CA/Dept of Finance: California State Budget.  Related, current news articles.  San Jose Mercury News/Jessica Calefati, 6/15/16, "California's new budget repeals welfare rule denying extra aid for newborns." "SACRAMENTO -- Capping a month of remarkably productive talks between Gov. Jerry Brown and Democratic leaders, lawmakers on Wednesday adopted a new state budget that repeals a harsh welfare rule advocates for needy families had fought against for years. Assembly members barely debated the $122.5 billion general fund budget, passing it 52-27. The Senate approved the spending plan 27-11 over the objections of most Republicans, who argued that the Legislature was a bit too generous this year and should have saved more of the tax revenue it collected. In passing the budget Wednesday, the Legislature met its June 15 constitutional deadline. Brown has until the end of the month to sign the spending plan."   KQED/Policy/Lisa Aliferis, 6/16/16, "California Budget includes limit on Medi-Cal estate recovery." ....   "Most states did not pursue this optional recovery program. .... ... Sen. Ed Hernandez (D-West Covina) said in a statement. “It is a huge victory that this year’s budget limits estate recovery so that people with modest family homes can pass it on to their children.”  Related, January, 2016 news articles. Educational News, 1/11/16/Grace Smith, "Brown's Proposed California Budget Includes Ed Increases." "California Governor Jerry Brown (D) has unveiled a record high $122.6 billion state budget for 2016-2017, which includes increased spending for education and a raise in earned income tax credit for the lowest-income working families. There will also be an increase in cost-of-living for the elderly, blind, and disabled — the first since 2006. The San Francisco Chronicle’s John Wildermuth quotes the governor: “The budget, relative to budgets of the past decade and a half, is in good shape.” Brown continued by warning that a recession might increase the budget into a $40 billion-plus deficit by the 2019-2020 fiscal year. He advised his audience at the Capitol news conference that if matters unfold as he wants them to, there will still be red, just not as much. He added that many changes could occur before the new spending plan takes effect July 1."   Note photographs. State Capital, Sacramento from ACLU/San Diego Lobby Day, 4/9/16. Governor Jerry Brown from the related Educational News/Grace Smith article.


Posted by Kathy Meeh

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