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Budget Watch
May 2012
Governor Brown
released the May Revise to his proposed 2012-13 state budget on May 14.
Since he first issued a draft budget in January, the state's projected budget
deficit grew from $9 billion to $16 billion. The increase is due to
revenues coming in below projections, and increased state spending.
To address the deficit, the governor plans to place a tax initiative on the
November ballot for voter approval. The plan would increase state sales
tax by a quarter-cent, and
raise personal income taxes on those earning more than $250,000 per year.
While raising revenue, the Governor also wants to make significant funding cuts
to reduce the deficit. Approximately $8 billion in reductions have been proposed
to a variety of state agencies.
The governor's budget plan contains automatic trigger cuts that would take
effect if voters fail to approve the tax initiative. The California
Community College system would see an estimated $300 million reduction in state
funding under the trigger cuts.
What's Next?
By law, the Legislature is required to pass a budget by June 15.
Legislators will stop getting paid if they miss the deadline. However,
since this is an election year, no significant budget decisions are expected
until after the June 5 primary.
Continue to monitor this site for timely updates, as well as suggestions for
getting involved and advocating for adequate funding for community colleges.
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