LOS ANGELES — California Gov. Jerry Brown received largely positive responses for his
The May revise budget proposal for fiscal 2016 offers a state earned income tax credit, a freeze on tuition growth at the University of California, and a large increase in K-12 education spending that was largely dictated by a constitutional spending formula.
"The Assembly has made clear our budget priorities include reducing poverty, restoring funding for schools and early childhood education, improving higher education funding, building reserves and paying down debt, and providing a down payment for transportation infrastructure," Assembly Speaker Toni Atkins, D-San Diego, said in a statement. "The governor's May Budget revision makes significant progress in these areas."
But lawmakers may want more spending than the governor is offering.
"The proposed budget and revenue scenarios reflect the improved state of our economy, but we know many Californians have been left out of this resurgence," said Senate President pro Tempore Kevin de Leon, D-Los Angeles.
"The Senate will continue to fight for access and affordability in higher education," De Leon said. "We are pleased UC students and their families will avoid paying higher tuition next year, but [California State University], the workhorse of our higher education system, has been shortchanged."
The Brown administration says it is being prudent with revenue windfalls that won't last forever.
"Another recession is on the way — we just don't know when. That's why this budget locks billions into the Rainy Day Fund and pays down debt," Brown said in a statement. "At the same time, this budget spends more than ever on schools and creates a new tax credit to help California's working poor."
As part of an agreement with the University of California, the state will provide temporary funding from Proposition 2 debt funds to assist in paying down the UC system's unfunded pension liability — as it imposes a pension cap consistent with the state's 2012 reform law.
For community colleges in 2015-16, the May revision provides more than $600 million above the governor's January proposal.
When Brown took office, the state faced a $26.6 billion budget deficit and estimated annual shortfalls of roughly $20 billion. These deficits, built up over a decade, have now been eliminated by a combination of budget cuts, temporary taxes and the recovering economy, according to the governor's office.
Brown's newest budget proposal sets aside $3.8 billion consistent with the voter-approved Proposition 2 Rainy Day Fund. Of this amount, $1.9 billion is directed to pay down existing debt and long-term liabilities. The other $1.9 billion would move into the Rainy Day Fund, bringing its balance to $3.5 billion. In addition, the May revision repays $765 million owed to local governments.
Compared to the governor's January budget, the May Revision increases spending for K-12 schools and community colleges by $6 billion, including $5.5 billion from the General Fund; the plan would fully repay past-year payment deferrals to local school districts.
The governor's budget revision also adds $1.2 billion from cap-and-trade auction proceeds, for a total of $2.2 billion, to expand programs to reduce greenhouse gas emissions.
As California continues to a drought conditions, the revision also includes a total of $2.2 billion, largely from bond funds, for programs to conserve water, respond to emergency conditions and expand local water supplies.
"I applaud the governor's commitment to invest in water recycling, water conservation, disadvantaged communities, farmworker assistance, and other efforts to deal with this historic and challenging drought," said Assemblymember Marc Levine, D-San Rafael, who chairs the Assembly Committee on Water, Parks and Wildlife.
"Overall, the governor has proposed a sound spending plan anchored in pragmatism and fiscal stability," said State Controller Betty Yee.
"We are happy to see the governor is interested in keeping the promises to invest in education, payoff state budget debts and liabilities, and save money for a rainy day," said Senate Republican Leader Bob Huff, R-Diamond Bar. "The plan does miss an opportunity by failing to invest more in California working families."
