On January 10th, 2011 Governor Jerry Brown released his proposed budget for the 2011-12 fiscal year. California is faced with a budget gap of $25.4 billion. This gap is made of a current-year shortfall of $8.2 billion and a budget-year shortfall of $17.2 billion.

The Governor's spending plan includes $12.5 billion in cuts and $12 billion in revenue increases by asking the voters to extend existing temporary taxes for five years. The spending plan aims to restore decisions and give authority back to cities, counties and schools to "create greater transparency and community involvement" at the local level.

The Governor started achieving these savings by eliminating the Office of the Secretary of Education, the Inspector General's Office for the American Recovery and Reinvestment Act, and reducing the Governor's Office budget by 25%. In addition, the Governor has directed Agency Secretaries and Department Directors, in consultation with the Department of Finance, to immediately review their operational costs and identify options to generate savings. As part of this effort, specific reorganization proposals will be developed to consolidate or eliminate departments, programs and functions.

Governor Jerry Brown's 2011-12 spending plan proposes the following:

K-12 Education

Maintains funding as in 2009/10 and extends the categorial flexibility reforms adopted in 2009.
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Community Colleges

Proposes a $400 million reduction, provides a 1.9% enrollment growth providing $110 million, and increases fees to $36 per unit, generating an additional $110 million.
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Higher Education

Proposes a $500 million reduction in CSU and a $500 million reduction in UC.
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Enterprise Zones

Proposes a $924 million reduction. Governor Brown noted they don't add to the general economy of the state and they just move money around. He also added that if local government cleans up their regulatory field they would be able to support local economic development and/or local voters would be given the option of raising revenue to provide support.

Redevelopment

Proposes a $1.7 billion reduction.

Veterans

Proposes the elimination of General Fund Support for County Veterans Services Offices in 2011-12 and Operation Welcome Home.

CalWorks

Proposes a $1.5 billion reduction by reducing eligibility, the amount of time a person can spend on welfare and childcare subsidies.

Medi-Cal

Proposes a $1.6 billion reduction.

In-Home Supportive Services

Proposes a $500 million reduction.

Childcare

Proposes a $316 million reduction.

To view the entire 2011/12 budget, visit the California Budget website.

2010-11 State Budget

The 2010 Budget Act marks the third year in a row that the Governor and the Legislatire have taken unprecedented steps to bring the state Budget into balance. After having to close a $24.3 billion budget gap in 2008 and a gap of $60 billion in 2009, the 2010 Budget Act closes a budget gap of $19.3 billion - an extraordinary three-year period in the state's fiscal history totaling budget solutions of $103.6 billion. The 2010 Budget Act hold General Fund spending essentially flat compared to the prior year - $86.6 billion in 2010-11 compared to $86.3 billion in 2009-10.

The Budget Act closes an estimated budget gap of $19.3 billion by a combination of expenditure reductions, federal funds, and other solutions.

View 2010-11 State Budget 

Governor’s December 2010 Special Session Proposals

On December 6, 2010, Governor Schwarzenegger declared a fiscal emergency and called the new Legislature into special session to address the anticipated 2010‑11 General Fund deficit—estimated by our office at $6.1 billion. The Governor’s special session proposals would decrease the gap between General Fund revenues and expenditures by $1.9 billion in 2010‑11 and by $8 million in 2011‑12, thereby reducing the $25.4 billion budget problem that we have identified to $15.5 billion. The Governor's proposals consist of $7.4 billion of expenditure-related reductions and two major revenue proposals. Essentially all of these proposals were rejected earlier this year by the prior Legislature.

The Governor also proposes to transfer vehicle weight fee revenues to the General Fund. This would achieve an estimated $850 million in budget solutions in 2010‑11 and $727 million in 2011‑12 by reimbursing the General Fund with weight fee revenues for certain transportation bond debt service costs, and also loaning a portion of the weight fee revenues to the General Fund. Under the proposal, the fuel tax revenues that would have helped the General Fund prior to Proposition 22 would now be available for transportation programs.

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Small Business Programs

On Tuesday, October 19th, 2010 Governor Schwarzenegger signed AB 1632, a measure that supports small business economic recovery and promotes economic development throughout the state. Four small business programs are included in this measure: the California Capital Access Program, Small Business Loan Guarantee Program, Small Business Development Centers and the Procurement Technical Assistance Technology Program.

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