Sacramento, Calif.-Governor Brown revealed his 2013-2014 budget proposal Thursday and the mantra is 'fiscal discipline'. The state budget proposes to boost investment in education, implements health care reform and attempts to keep California on a path to fiscal stability. This budget builds on the work of the last two years to eliminate the ongoing deficit.
In a press conference at the Capital Thursday the Governor said, "the budget cuts made in the last two years and the passage of Proposition 30 make it possible to both live within our means and to increase funding for education."
When Governor Brown took office, the state faced a $26.6 billion budget deficit and estimated annual gaps of roughly $20 billion. The first two state budgets under Governor Brown's watch eliminated these deficits with billions of dollars in cuts as well as temporary revenues. The 2011-2012 and 2012-2013 budgets provided three dollars of spending cuts for every dollar in temporary tax revenues approved by the voters.
Yet the state has a structural deficit that lawmakers must address. The Governor's proposal reflects the continuation of spending cuts made in the last two years, and attempts to pay down the "wall of debt" and recognizes risks that remain.
The Governor went on to say, "fiscal discipline is not the enemy of democratic governance, but rather its fundamental predicate. In fact, it is through fiscal discipline that this budget can invest in education, expand health care and provide a safety net for the most vulnerable."
Some significant efforts by this 2013-2014 state budget proposal:
By aligning spending with revenues, paying down debt and creating a $1 billion reserve, this budget will seek to provide long-term fiscal stability.
This budget proposal seeks to increase state funding per student in K-12 schools – $2,700 by 2016-2017. Funding for K-12 and community colleges increases by $2.7 billion next year, and by $19 billion by 2016-2017.
This budget proposes to increase state funding for UC and CSU by an additional $250 million or 5 percent. It proposes a multi-year stable funding plan to strengthen our higher education system, ensure affordability and reduce student indebtedness.
This budget seeks to expand access to health care for Californians by implementing federal health care reform. It expands coverage by simplifying Medi-Cal eligibility and extending coverage to childless adults and uninsured parents. Given promised federal funding, the budget outlines two alternative pathways. It also recognizes that implementation of health care reform will require changes in the respective responsibilities of the state and the counties.
