Governor Brown Unveils Revised Budget

5-16-2011

Governor Edmund G. Brown, Jr. today unveiled a revised state budget that reduces by nearly $3 billion the amount of taxes needed to balance the budget, spurs job creation through new tax incentives and pays off most of the $34.7 billion debt built up over the last decade.

“California’s economy is growing, but we still face a $10 billion structural deficit and a wall of debt for years to come,” said Brown. “California’s finances were plunged into turmoil by the Great Recession and a decade of short-term fixes and fiscal gimmicks. This is not the time to delay or evade. This is the time to put our finances in order.”

The revised budget also downsizes state government and protects education and public safety. Since taking office in January, Brown and the legislature have cut spending by $9 billion and have taken other steps to reduce the deficit.

Key Highlights of Governor Brown’s May Revision Budget

Reduce the amount of taxes required to balance the budget. Californians will pay $2 billion less in income taxes this year than proposed in the January budget.

Increase spending on K-12 education. For years, the state has shortchanged public education in order to balance the budget, forcing school districts to borrow in order to balance their budgets. The revised budget increases funds for public schools by $3 billion. Even with this new infusion of funds, California schools are still owed billions by the state.

Spur job creation through tax incentives. The revised budget restricts Enterprise Zone credits to create new jobs only; spurs investments in California jobs through mandatory single sales; encourages manufacturing jobs through reduced sales tax on equipment purchases; and revamps a hiring tax credit to encourage additional job creation.

Create a long-term strategy to address California’s Wall of Debt. California has accrued $35 billion in budgetary debt by borrowing from future generations. The May Revision lays out a plan to pay off at least $29 billion in looming state debt by 2015.

Cut state government. The revised budget eliminates 43 boards, commissions, task forces, offices and departments that represent an inefficient use of taxpayer dollars. As services are returned to the local level, the Departments of Mental Health and Alcohol and Drug Programs will be eliminated. The revised budget also proposes to merge the Healthy Families Program into the Medi-Cal program, reducing costs and creating a single health care program for low income families

Improve debt management. More than $11 billion in cash from bond sales is sitting in department accounts, where it costs taxpayers more than $700 million a year in debt service for projects that have yet to be completed, creating an unacceptable burden on taxpayers. The revised budget proposes expediting projects, moving cash out of accounts and into projects that create jobs and improve state infrastructure as taxpayers intended.

Restore honesty to the budget process. Last year’s budget underfunded the costs of both the Department of Corrections and Rehabilitation and Department of Mental Health by $465 million. The revised budget addresses the shortfalls in these departments and establishes controls to prevent future overspending.

Sell underutilized state properties. The revised budget proposes the sale of state-owned properties like the Los Angeles Coliseum, the Montclair Golf Course in Oakland, the Capital Area Development Authority in Sacramento and the Ramirez Canyon property in Southern California. These properties serve no state function and should be sold off to pay debt.

The May Revision can be found here：http://www.ebudget.ca.gov/

State Funds：2011-12*
	Total Dollars $11,629,298  Total Personnel  Years 131,992.7
	State Funds by Department All Funds by Department Personnel Years by Department Additional Information

Higher Education

Higher Education provides the adult population with basic and career skills, postsecondary, graduate and doctoral instruction, and research to develop the workforce, intellectual capital, and innovations necessary to promote the economy and well being of the state's citizenry. The specific missions for each of the three publicly funded higher education systems, including the California Community Colleges, the California State University, and the University of California, are addressed in those segments' mission statements. The Student Aid Commission ensures financial assistance for needy students.

AGENCY'S PORTION OF THE BUDGET（State Funds）
The following charts represent the Agency's portion of the 2011-12 Budget. These totals do not include federal funds, certain non-governmental cost funds, or reimbursements.

Proposed（January 2011）	Revised（May 2011）

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STATE FUNDS BY DEPARTMENT Back to Top
The following table presents proposed and revised budget year expenditures for each department in this agency area. These totals do not include the expenditure of federal funds, certain non-governmental cost funds, or reimbursements.

Code	Department	January '11 Proposed Total State Funds*	May '11 Revised Total State Funds*	Change*	% Change
6420	Postsecondary Education Commission	$1,927	$1,927	$-	0.00%
6440	University of California	2,566,372	2,660,712	94,340	3.68%
6445	Institute for Regenerative Medicine	321,173	321,173	-	0.00%
6600	Hastings College of the Law	6,935	6,935	-	0.00%
6610	California State University	2,311,423	2,321,103	9,680	0.42%
6870	Board of Governors of Community Colleges	3,889,943	4,220,638	330,695	8.50%
6874	General Obligation Bonds-Hi Ed-CC	251,042	250,201	-841	-0.34%
6878	Retirement Costs-Hi Ed-CC	105,730	102,836	-2,894	-2.74%
7980	Student Aid Commission	577,553	1,250,796	673,243	116.57%
7996	General Obligation Bonds-Hi Ed	504,724	492,977	-11,747	-2.33%
Totals, Expenditures		$10,536,822	$11,629,298	$1,092,476	10.37%

ALL FUNDS BY DEPARTMENT Back to Top
The following table presents proposed and revised budget year expenditures for each department in this agency area. Total All Funds include state funds, federal funds, other non-governmental costs funds, and reimbursements necessary to support the operations of department programs.

Code	Department	January '11 Proposed Total All Funds*	May '11 Revised Total All Funds*	Change*	% Change
6420	Postsecondary Education Commission	$10,570	$10,570	$-	0.00%
6440	University of California	22,459,330	22,823,429	364,099	1.62%
6445	Institute for Regenerative Medicine	321,173	321,173	-	0.00%
6600	Hastings College of the Law	68,688	68,688	-	0.00%
6610	California State University	7,353,502	7,363,182	9,680	0.13%
6870	Board of Governors of Community Colleges	6,487,849	6,888,062	400,213	6.17%
6874	General Obligation Bonds-Hi Ed-CC	251,042	250,201	-841	-0.34%
6878	Retirement Costs-Hi Ed-CC	105,730	102,836	-2,894	-2.74%
7980	Student Aid Commission	1,597,768	1,497,713	-100,055	-6.26%
7996	General Obligation Bonds-Hi Ed	504,724	492,977	-11,747	-2.33%
Totals, Expenditures		$39,160,376	$39,818,831	$658,455	1.68%

PERSONNEL YEARS BY DEPARTMENT Back to Top
The following table presents proposed and revised budget year personnel years for each department within this agency area.

Code	Department	January '11 Proposed Total Personnel Years	May '11 Revised Total Personnel Years	Change	% Change
6420	Postsecondary Education Commission	20.3	20.3	-	0.00%
6440	University of California	85,882.2	85,882.2	-	0.00%
6445	Institute for Regenerative Medicine	47.5	47.5	-	0.00%
6600	Hastings College of the Law	259.0	259.0	-	0.00%
6610	California State University	45,533.4	45,533.4	-	0.00%
6870	Board of Governors of Community Colleges	145.7	146.6	0.9	0.62%
6874	General Obligation Bonds-Hi Ed-CC	-	-	-	-
6878	Retirement Costs-Hi Ed-CC	-	-	-	-
7980	Student Aid Commission	100.8	103.7	2.9	2.88%
7996	General Obligation Bonds-Hi Ed	-	-	-	-
Totals, Personnel Years		131,988.9	131,992.7	3.8	0.00%

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布朗預算修正案 延稅不鬆口

布朗州長周一提出下年度預算修正案，因稅入增加，所以將預算赤字下調為96億元，不過他仍建議以延稅的方法去籌集所需的100億元款項（美聯社）

　　布朗州長16日提出了下年度的預算修正案，由於州政府的稅收比五個月前的估計增加了，因此修正案將下年度的赤字下調為96億元，而且會增撥30億元作教育經費，但修正案仍然建議實施延稅措施，以籌集彌補赤字所需的約100億元。

　　布朗說本年度餘下的兩個月，再加上下年度的12個月，稅收將會比今年1月時的估計增加66億元，因此下年度的赤字將減至96億元。今年1月時，布朗政府估計，下年度的赤字為266億元，其中的112億元府會已經同意以削減的方法處理掉，但還剩下154億元沒有著落，現在因為稅收增加，得以減為96億元。

　　布朗建議，以延稅的方法去籌集108億元，並且將其中的12億元撥作為儲備金，30億元撥作學校經費。

　　今年1月時提出的延稅計畫，原要延長三項於今年6月30 日期滿的臨時加稅措施，這三項措施為提高銷售稅、個人所得稅和汽車牌照費，但布朗現在建議，取消個人所得稅的一項，只保留銷售稅和汽車牌照費兩項。

　　布朗又計畫，先要求州議會同意這兩項延稅措施，然後才再將兩項措施交給加州選民公投。他沒有說，為公投而設的特別選舉，將於什麼時間舉行。

　　反對加稅的州議會共和黨人已表示，稅收增加令州政府無須延稅。布朗為加稅辯護說：「有人說我們已經脫困，這是不對的，我們仍有很嚴重的結構性預算赤字。」

　　除了延稅，布朗還提出其他彌補赤字的措施，包括了將健康計畫（Healthy Families）與加州醫療補助計畫（Medi-Cal）合併（前者為低收兒童提供健保，後者為低收入家庭提供健保）。

　　另外，布朗建議取消43個州政府的委員會；至於1月時提出的取消各地重建局的計畫，則繼續保留。

　　修正案還建議修改公司稅法，以便增加13億元稅收，另外又建議取消一項給商業的抵稅額（tax credit），除非有關商業開始招聘新員工，才可繼續得到抵稅額。