CA Budget Update - July 22, 2009 |
| Posted By Rhonda Messamore (rmessamore) On Jul 22 2009 |
While full details are still emerging, here are the details that we have obtained thus far:
General Fund Program Cuts: ($15.5 billion) include, but are not limited to:
- Corrections: ($1.2 billion)* See below for more detail
- Healthy Families: ($226 million)
- Medi-Cal: ($1.3 billion over two years)
- Cal-Works: ($528 million)
IHSS: ($211 million) - through new background checks and fingerprinting requirements for IHSS providers and recipients; no cuts to provider salaries
Revenues: ($4 billion) - We expect two budget trailer bills involving revenues. Details about how they will be separated are still forthcoming. We know there is likely to be two trailer bills, one dealing with general "omnibus" revenues and a second dealing with "tax enforcement" issues.
- Increased personal income tax withholding (Governor and conference report proposals)
- Accelerated estimated tax payments (Governor and conference report proposals)
- Tranquillion Ridge Oil Drilling Lease (Santa Barbara)
- Department of Industrial Relations (DIR) fees
- Emergency Response Initiative (ERI) fees are NOT in the deal
- Local Government: ($4.3 billion)
- Prop 1A borrowing ($2 billion)
- Two-year borrowing of local gas tax ($1 billion per year)
Local redevelopment agencies ($1.3 billion)
- Williamson Act back in but with a 20% cut
General Borrowing: ($2 billion) plus an additional $1.5 billion in special fund shifts.
Education:
- K-14 ($6 billion)
- Higher Education ($3 billion)
- Note: Education cuts are roughly $680 million higher than budget conference report.
Reserve: Estimated in the neighborhood of $800 million.
Integrated Waste Management Board: Eliminated.
I will provide further information as it becomes available.
