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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.