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Governor Signs FY 2013–14 Budget Plan

June 27, 2013
Gov. Jerry Brown signed the FY 2013–14 budget this morning flanked by legislative leaders Senate Pro Tem Darrell Steinberg (D-Sacramento) and Assembly Speaker John A. Pérez (D-Los Angeles).
 
The Governor characterized the budget as an investment in education and health care that brings the state finances in very solid shape. The Pro Tem took to the podium following Gov. Brown and touted achievements in mental health and Medi-Cal dental spending; in a similar tone, Speaker praised the budget as a truly balanced plan that focuses on long term planning.   
 
2013–14 Budget Overview
 
The FY 2013-14 budget plan signed today outlines $96.3 billion in General Fund (GF) spending with a $1.1 billion budget reserve. Despite the appearance that state revenues are on a continued upward trend, the budget plan takes a somewhat modest approach in its proposals. Budget provisions take into account that future GF revenues may trail off due to the anticipated drop in capital gains tax receipts and federal spending cuts. It does not include the Governor’s original proposal to eliminate the state’s Enterprise Zone (EZ) Program. The Legislature recently introduced AB 93 (Committee on Budget), which eliminates the current EZ program and creates a new statewide system. For more information, please see “Enterprise Zone Elimination Bill Passes Senate Floor, Returns to Assembly,” CA Cities Advocate, June 26, 2013.
 
Major components of the FY 2013–14 include:
  • Increases funding for the Governor’s effort to reform K-12 education finance;
  • Implements the Local Control Funding Formula (LCFF) that directs more revenues to school districts with higher numbers of low-income and English learning students;
  • A state-based approach to implement Medi-Cal expansion under the federal Patient Protection and Affordable Care Act;
  • $500 million in additional Medi-Cal spending;
  • Enacting the Middle Class Scholarship Program;
  • $500 million loan from AB 32 Cap-and-Trade Program revenues to the GF;
  • Payments to pay down the state’s $35 billion “wall of debt;”
  • Major spending augmentation in mental health services.
For more information on the recently signed budget, please see “BUDGET UPDATE: Legislature Holds Rare Saturday Session to Meet June 15 Deadline,” CA Cities Advocate, June 17, 2013.
 


 
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