As the budget deficit grew to an exorbitant $15.7 billion — far larger than $9.2 billion projected back in January — Governor Brown called today for further cuts to health and welfare programs as well as a 5% furlough for state workers.
Today’s announcement is one cog in the Democratic governor’s plan to better bridge the gap within the $91.4 billion spending plan, the main thrust of his plan depending on his proposed tax initiative on the November ballot calling for an income tax increase for the wealthy. The gap mainly grew because Brown over-estimated tax revenues by some $4.3 billion; this was paired with a federally-blocked $1.7 billion cut the State wanted to previously make.
Brown was not hesitant in coupling the State’s financial problems with that of the nation, stating that the budget “reflects the fact that the nation’s economic recovery is proceeding more slowly than anticipated.”
In his talk to the press today, here are some of the proposed tactics Governor Brown plans on implementing:
- 16% cut in funding on K-12 education
- cutting University of California funding by $38 million, effectively sidelining the $125 million needed by the UC in order to avoid a tuition hike of 6%
- California State University trigger cut growing to $250 million if tax initiative not met
- further cuts to the CalGrants program
- $500 million cuts to the court system, including a one-year freeze on all new construction projects
- Medi-Cal cuts heightened to $1.2 billion, including a 7% cut in hours for In-Home Supportive Services recipients and reduced monies to hospitals and nursing homes caring for Medi-Cal patients
- requiring state employees to work four-days-a-week with 9.5 hour shifts, effectively cutting two hours from their 40-hour work week
Brown’s budget still relies mostly on what he stated back in January, holding steadfastly to his $1.2 million cut in welfare programs that includes an overhaul that would reduce the amount of time recepients of welfare can stay in the Welfare-to-Work program. If his proposed tax initiative passes, he expects $8.5 billion from the income tax revenue.