Governor Unveils 2012/13 Budget Proposal
Brown’s plan includes a tax initiative, massive cuts & continued hardship for the CSU
In a surprise turn, Gov. Jerry Brown unveiled his budget proposal
for the 2012/13 fiscal year Thursday rather than next week as had
been previously announced.
Brown framed his $92.6 billion spending plan as an either-or
decision dependent on his $6.9 billion initiative to increase
taxes on sales and the wealthy.
The governor’s budget blueprint includes major reductions in a
number of critical areas, especially support for low- and
middle-income Californians who need health coverage or child
care, help in moving from welfare to work, or help financing a
college education.
The governor's 2012/13 budget proposal can be viewed in its
entirety at www.ebudget.ca.gov
The plan includes no immediate cuts to the CSU but does include a
$200 million “trigger cut” should the tax initiative fail, as
well as a number of other funding “shifts” affecting how money is
allocated to the CSU that will need further careful examination.
The Governor’s allocation to the CSU’s base budget comes on the
heels of a $750 million reduction in enacted in 2011.
CFA President Lillian Taiz, a professor of history at CSU Los
Angeles, released the following statement this morning in regard
to the Governor’s budget plan:
“We agree with the governor, that any effort to put the
state’s fiscal house in order must include new revenue. We
welcome all serious efforts finally to address our state’s
problems by restoring revenue; as a state we must pay for the
public institutions and programs that make California great.
“While the budget proposal released by the Governor Thursday
appears to contain no immediate cuts to the California State
University, the proposal includes new shifts in costs that will
ultimately create a bigger hole in the public university’s
already stressed budget.
“After years of persistent funding cuts, and measures taken
by the university’s management that focus the cuts on classes and
students, we are running out of options.
“If this budget comes to fruition, an entire generation of
CSU Students will be forced to bear the burden of our state’s
continued disinvestment in public higher education.
“The plan released yesterday is just the opening salvo in the
state budget process. We look forward to working with the
Assembly Speaker, Senate Pro Tem and members of the legislature
over the coming months to ensure the needed financial support to
keep our institutions public university affordable and accessible
while providing the quality higher education that has made our
state great.”.
Details of the Governor’s Proposed Cuts
The governor's budget again takes aim at key anti-poverty
programs, including CalWORKs, Medi-Cal and supportive services
for homebound elderly and the disabled.
- CalWORKs would see a cut of $1.1 billion, in large part by
creating the first 24-month limit on cash benefits for parents
who do not meet work requirements.
- Parents whose aid is cut off after two years would still
receive benefits for their children, but those kids would see
their monthly checks cut from $463 to $392.
- Hundreds of thousands of developmentally delayed, homebound
elderly and disabled California residents would also see another
round of reduced cuts to services.
- Brown's plan to close one quarter of the state parks system
-- 70 of 280 parks -- by July 1 remained intact. He's also
calling for 20 percent of state park rangers and all seasonal
lifeguards to be laid off, saving a total of $8.7 million, if
voters do not approve his proposed taxes in November.
- The plan suggests purging the state of 39 departments,
offices, boards and commissions and wiping out nine state
programs.
- Brown proposes reducing the state's workforce by some 3,000
positions, mostly from the Department of Corrections and
Rehabilitation.
Details of the Governor’s Tax Initiative
Brown called for a budget that assumes passage of a tax measure
he plans to take to voters in November. The governor says passage
of the measure would wipe out a $9.2 billion deficit through
mid-2013 and give schools $4.9 billion more than this fiscal
year.
The proposed initiative – which he hopes to place on the November
ballot – would boost income taxes on those earning at least
$250,000 and raise levies on sales to 7.75 percent from 7.25
percent, to erase the state's $13 billion budget deficit.
If voters reject the taxes, new cuts of $5.4 billion – including
$200 million to the CSU – would be triggered, on top of the $4.2
billion in cuts that Brown has proposed for K-12. Those potential
cuts could reduce the school year by three weeks.
