Governor proposes $122.6 billion California budget

“It also goes without saying that we should be chipping away at the $72 billion unfunded liability that weighs down our retiree health system”, he continued. But the governor cautioned the Legislature against big spending proposals.

“The Governor is continuing to devote more revenues to high-quality learning that prepares children for 21st century careers and college, including an additional investment of $300 million in career technical education that emphasizes hands on learning”, said State Superintendent of Instruction Tom Torlakson. The new tax must hit all plans whether they accept Medi-Cal patients or not.

“While his budget includes a proposal to improve our state’s bad roads, we must do more to reform government and streamline existing transportation spending to provide the long-term funding that our roads need”, said Sen.

California Governor Jerry Brown was in his element when he introduced his annual January budget proposal yesterday at the state Capitol. The current sum proposed for the courts is a $330 million increase.

Brown called special sessions a year ago to address health care and transportation, but neither gained traction. “We can not continue to delay the rebuilding of our transportation infrastructure”, continued Cannella.

The Governor also highlighted the $900 million in competitive matching grants for career technical education, many of which should address areas of high youth unemployment and high dropout rates. “I look forward to working with the governor and my colleagues to continue to prioritize higher education”. Brown said that permanent programs would be disastrous if a recession is coming, which he spoke of as if it were a certainty. Our students deserve better. Judges and court clerks recoiled at the idea of having their carefully built reserves stripped away, but the measure passed as part of the 2012-13 budget package over their objections and remains a part of the judiciary’s statewide fiscal policy.

The current tax, which is paid only by managed Medi-Cal insurers, will end in June. Less than half of health plans in the state operate Medicaid MCOs.

Brown calls for retaining funding for in-home caretakers, but it’s only if lawmakers agree to broaden a tax on managed health care plans. These costs will grow to reach $1.8 billion General Fund by 2020-21.

Several student leaders expressed concern about the viability of increasing student enrollment given the funding offered from the state when the UC Regents approved a plan in November that aims to increase resident enrollment in the UC by 10,000 students over the next three years.

The state’s economy is highly reliant on volatile capital gains revenues from the wealthy, which are soaring along with the state’s economy, and Brown warned again Thursday of the inevitable boom-and-bust cycle, proposing to end the fiscal year with an $8 billion rainy day fund.

Brown’s proposal also would keep tuition flat at University of California and California State University schools. Over the next decade, $36-billion would also be spent on state infrastructure to improve our highways and roads. Just under 70 percent of the General Fund – the state’s main coffer, which includes sales, personal income and corporate tax revenues – comes from personal income taxes.

The dark cloud hanging over the flush educational budgets of the last few years is Prop 30, a tax increase that has flooded the state with additional billions for schools but is due to begin sunsetting this year unless voters approve an extension that may be on the ballot this November.

Low-income seniors and disabled people in California will receive a cost-of-living increase from the state, the first since 2006.

Even though General Fund spending is projected to rise by more than $9 billion over the past two years, actual spending is held in check.