Calif. budget plan boosts spending but Democrats seek more

Gov. Jerry Brown warned stakeholders not to get giddy over increased revenues as he released his 2016-17 budget proposal, a plan that calls for shoring up California’s rainy day fund and increasing education spending.

Gov. Jerry Brown holds a chart as he discusses his proposed 2016-17 state budget at a news conference Thursday, Jan. 7, 2016, in Sacramento, Calif. Brown proposed a sweeping $122.6 billion budget plan for California on Thursday that includes billions more in spending for education, health care and state infrastructure, increases the state rainy day fund to $8 billion and takes steps to pay down debts.

The budget plan also reflects Brown’s transportation proposal to spend $3.6 billion a year on infrastructure improvements, funded through a combination of vehicle registration fees, increases to the diesel and gas taxes, and diverting money from the fees charged to polluters. It would impose a surcharge on high-value properties to raise an estimated $7 billion for a variety of health, welfare and educational programs.

The minimum wage will increase at the start of this year to $10, but given the high cost of living throughout the state, some are pushing it even higher. “I look forward to working with my colleagues on a budget that moves California in the right direction”. The UC will receive a total of $3.41 billion in state funding if the proposal is approved.

K-12 per-pupil spending would increase to $10,591 under Brown’s plan, a $368 per-pupil increase over 2015-16.

(State Budget proposed)…Governor Edmund Brown Jr. announced the proposal Thursday morning.

But in 2005, when the Republican governor championed measures to weaken teacher tenure, restrict union dues collection, cap state spending, and take away the Legislature’s authority to draw the state’s political map, labor unions clobbered the initiatives and Schwarzenegger saw his approval rating plummet in the process. Brown said using the budget history as a template, his team predicted the effects of another budget shortfall, which could happen soon.

“There is plenty of money available if we redirect those monies that should be going to transportation… not spending them elsewhere”, said Republican Senator Jim Nielsen of Gerber. The broader managed-care organization (MCO) tax would replace a narrower levy set to expire at the end of June. The three-year tax reform package is the culmination of months of negotiations between the governor and the health insurance industry. According to “State of Health”, the cost is projected to account for $1.9 billion from the general fund (“State of Health”, KQED, 1/7).

California’s economy is on the mend and revenues are fat, but Gov. Brown offered some words of gloom as he unveiled a $171 billion budget blueprint for the fiscal year beginning July 1. For example, the increase to $10 an hour has raised General Fund costs by over $250 million annually.

While some advocates praised the proposal for providing health care coverage for the state’s children, others said it could do more.

The budget also includes an extra $57 million for counties to continue processing enrollment applications.

The budget proposes a one-time sum of $323 million to address drought in the coming fiscal year.

• University of California and California State University tuition would be kept at 2011-12 levels for another year. With reservoirs and groundwater supplies “significantly depleted”, the budget proposes protecting water supplies, conserving water and providing emergency assistance to farm workers, fish and wildlife. However, they criticized proposed fee and tax increases to address growing road maintenance demands.

Brown was similarly unenthused about a proposal to continue the income taxes on high earners, which were initially approved by voters under Proposition 30 in 2012.

Contributing reports by Allison Ong, Bruin reporter.