|
Today, the first iteration of the FY 2010-11 State Budget was unveiled by the Governor, and the negotiations are officially under way. Faced with a projected state deficit of $20 billion, the Governor's proposed budget calls for permanently cutting state worker salaries, deep reductions to Medi-Cal and welfare and numerous other cuts while simultaneously seeking to procure supplementary revenues from the federal government. While just days removed from a State of the State Address that -- in a sentiment echoed by Democratic Assembly Leaders -- pledged to keep local government coffers intact in this year's state budget, several provisions of the Governor's proposed budget do directly impact local funding streams. From a local government standpoint, a key provision of the proposed budget is a restructuring of Prop 42 funding, essentially replacing the current sales tax on gasoline sales with an excise tax that can be more tightly controlled by the state. Early analysis of this proposal suggest this could lower the per gallon cost of gasoline, while also eliminating a $1 billion revenue stream for public transit. The legality of this proposal has come under immediate question from transportation advocates and some local government analysts. The Governor also pledged to be "relentless" is getting California its due from the federal government, noting that he is not looking for any handouts, rather that he is seeking money California is owed as a donor state. Some quick notes on the Budget proposal: - The Budget calls for $8.5 bil cuts, $6.9 bil in additional funding from the federal government and $3.9 bil "alt funding" (swaps, fees, etc)
- Under the governor's plan, state funding formulas would be tweaked in a way to reduce payments to schools by $2.4 billion.
- The proposal resurrects plans for offshore drilling off the Santa Barbara coast
- From the LA Times "While the plan lacks broad-based tax hikes, it does include a 4.8% surcharge on residential and commercial property insurance to pay for fire protection, reviving a past proposal that lawmakers have rejected. The surcharge would raise $238 million this fiscal year and $479 million in the next one."
- The first words out of Senate Pro Tem Darrel Steinberg's mouth upon seeing the Governor's budget was "You've got to be kidding." Assembly Leader Karen Bass echoed by calling it a "pile of denial."
The full budget can be viewed in pdf format here. Read additional analysis from the OC Register and the LA Times.
|
