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|April 20, 2018|
Governor's budget erases $2 billion deficit
SACRAMENTO - (INT) - Governor Brown says the state's financial outlook is the worst in five years. He is proposing a 2017-18 budget that eliminates a $2 billion deficit.
Brown declared that “uncertainty about the future makes acting responsibly now even more important.”
His spending plan announced Tuesday bolsters the state’s Rainy Day Fund while continuing to invest in education, health care expansion and other core programs.
Brown says his budget proposes $3.2 billion in solutions to ensure a balanced budget. By tempering spending growth rather than cutting existing program levels, these actions minimize the negative effects on Californians.
Solutions include adjusting Proposition 98 spending, recapturing unspent allocations from 2016 and constraining some projected spending growth. In total, General Fund spending remains flat compared to 2016-17.
The budget continues to fund:
The rising state minimum wage, which is scheduled to increase to $11 per hour in 2018 and $15 per hour over time.
California’s Earned Income Tax Credit.
The first cost-of-living adjustment for Supplemental Security Income/State Supplementary Payment recipients since 2005.
The repeal of the maximum family grant rule in CalWORKs, which denied aid to children who were born while their parents were receiving aid.
Increases in child care and early education provider rates and children served totaling $837 million.
Story Date: January 15, 2017