On Monday, June 27, 2016, the Governor signed SB 826, the 2016-17 Budget Act, and a number of trailer bills to implement policy changes in the budget. For the first time since the 1980’s, the Governor did not exercise his line-item veto authority to reduce or eliminate any of the budget appropriations passed by the Legislature.
The budget includes $122.5 billion in General Fund expenditures, $51.6 billion of which is slated for K-12 education programs. The budget prioritizes preparing for the next economic downturn, one of the Governor’s top priorities, by placing an extra $2 billion into the state’s Rainy Day Fund, bringing the total fund balance to $6.7 billion. The budget also addresses one of the Legislature’s top priorities by including $400 million for affordable housing, tied to future regulatory reform, and authorizing development of a $2 billion bond program to address homelessness for individuals with mental health needs. Details of this program are still being negotiated.
On Thursday, June 9, 2016, the Legislature and Governor announced the framework for a deal on the FY 2016-17 budget. Some details are still being refined, and the deal still must be approved by both houses of the Legislature. We expect the Legislature to take up the budget bill and related trailer bills in time to meet the June 15 constitutional deadline. The deal reflects one of the Governor’s top priorities, placing an extra $2 billion into the state’s Rainy Day Fund. The deal also addresses one of the Legislature’s top priorities by including $400 million for affordable housing, tied to future regulatory reform.
On Sunday June 15, 2014, the Legislature approved the FY 2014-15 State Budget Act as well as a number of accompanying trailer bills in order to meet the June 15 constitutional deadline (see C.A.S.H. article on June 16, 2014 entitled “Legislature Passes Budget – Education and Facilities Impacts”). These bills will now be sent to the Governor for his consideration. The Legislature’s approved budget package includes $188.1 million in one-time funds for Emergency Repair Program (ERP) projects. Furthermore, in both his January Budget and the May Revision, the Governor stated his intention to fund the remaining $272 million worth of ERP projects in the 2015-16 State Budget.
On Thursday May 8th the Senate Budget Subcommittee #1 on Education held a hearing that included the Governor’s budget proposals on Proposition 39, the School Facilities Program (SFP), and the Emergency Repair Program (ERP). The following is a summary of these budget items that were discussed in committee, as well as C.A.S.H.’s testimony on each item.
Today the Legislative Analyst’s Office released the five-year revenue and expenditure estimates for California’s State Budget. This is the most optimistic projection since 2007-08. We hope that it will not suffer the same recession battered fate as the 2007-08 projection.
The top line is State General Fund revenue growing by $27.1 billion between now and 2019-20 (even after the end of the Proposition 30 sales and income tax increases). Of this, the 2013-14 revenues are expected to be $4.7 billion above the Governor’s Budget projection, while 2014-15 will be $5.8 billion greater than 2013-14. Continue reading →
We reported to you previously that, as part of the enacted 2013-14 Budget, Routine Restricted Maintenance contributions and the Deferred Maintenance Program matching requirement local set-aside were eliminated. However, upon further analysis of the LCFF and its implications, it has come to our attention that the minimum requirements for Routine Restricted Maintenance Account contributions still remain in the law.