“The governor’s budget proposal, and his state of the state message, represents the right moment for the governor to acknowledge that without a Prop 30 extension, the progress we have made over the past few years will be in jeopardy”.
Advertisement
California’s public schools and community colleges are seeing sizable funding increases for the second year in a row as state tax revenues soar during the economic recovery. The current managed care organization tax levies a 3.94 percent tax on health plans that serve people receiving Medi-Cal. The new fiscal year begins July 1.
The budget proposal for 2016-17 the governor released on Thursday puts $24.6 million and 126 state jobs toward the task of crafting the state’s first licensing and operating rules for marijuana growers, dispensaries, testing labs and other pot-related businesses.
Brown also proposed spending $100 million in bond funding to shore up Delta levees and $60 million to pay down deferred maintenance at state parks, such as repaving roads, fixing roofs and modernizing campgrounds. Governor Brown wrote that revenue losses can easily total $55 billion, over three years, during a moderate recession.
Brown has generally sought to restrain spending, sometimes clashing with fellow Democrats in the state Legislature who have called for expanding social welfare programs. When federal money and other sources are included, the state would have an estimated $14,550 to spend per student in 2016-17, up from $14,184 this school year.
The budget includes increases for education, health care, infrastructure, and the state’s rainy day fund.
“Democrats should pay attention to the legislative analyst and Governor Brown’s warnings about overspending, and balance the need to invest in critical infrastructure projects to improve our roads, schools and dams with one-time money”, Mayes said in a statement.
The budget allocates a $3.1 billion Cap and Trade Expenditure Plan that the governor predicts will reduce emissions through programs that support clean transportation, reduce short-lived climate pollutants, protect natural ecosystems and benefit disadvantaged communities. Brown said the tax is critical to maintaining the state health care program for the poor, which is projected to cover 13.5 million people by 2017, almost a third of the state’s population. These costs will grow to reach $1.8 billion General Fund by 2020-21.
Republicans have rejected tax increases, arguing there is enough funding elsewhere.
That’s well over $10,000 per student, which will elevate California’s per-pupil spending into the middle ranks of the states. Schools are guaranteed about 40 percent of general fund revenues under voter-approved Proposition 98.
The recession-era cuts left a $1.1 billion hole in the state’s Department of Health and Human Services, which won’t be restored by the budget proposal, even as the Golden State has built a surplus.
The budget announcement sets the stage for a months-long debate with lawmakers over spending priorities.
Advertisement
Some insurance industry and taxpayer advocates said the proposal sounded like a fair way to preserve Medi-Cal spending while ensuring that premiums for privately ensured consumers would not rise from a tax hike.
