Governor Rolls Out Revised State Budget

Gov. Jerry Brown unveiled a revised state budget proposal Monday that slashes spending by $8.3 billion and relies on increased revenues from a November ballot measure to bridge a $16 million deficit.

The revised budget proposes an additional $4.1 billion in cuts beyond those proposed in the governor’s January budget. The cuts affect nearly every area of government, including state employee compensation, social services, education and courts.

If the governor’s proposed tax initiative does not pass in November, another $6 billion in “trigger cuts” are proposed, primarily in K-12 education.

At a Capitol press conference, the governor called the proposed budget a “day of reckoning” for California. The $9.2 billion budget gap estimated in January has grown to 15.7 billion today, he said, with revenues lagging due to the struggling economy and court decisions preventing the state from imposing cuts approved earlier this year.

The governor acknowledged the pain associated with additional cuts, and called on voters to approve the November tax measure to spare even more devastating reductions.

“We can’t balance the budget with cuts alone; that would further undermine public safety and schools,” Brown said. “My initiative is modest, fair and temporary. It won’t solve all of the state’s problems, but it will help dig us out of a deep hole and protect our schools until the recovery is complete.”

ACWA is analyzing the revised budget and will provide an update soon.