UC claims Gov. Brown's proposed funding increase is less than anticipated


The biggest battle in this year's California budget process is likely to be about what to do with an estimated $7.5 billion budget surplus.

Sacramento-During Wednesday's announcement, Governor Jerry Brown's budget calls for $131.7 billion dollars in spending with a focus on education.

Mr. Brown has been preaching frugality for years - he kicked off one past budget talk with Aesop's fable about the thrifty ant and the lazy grasshopper. "That is just the reality". "Fiscal restraints are needed more than ever as California approaches the peak of the business cycle".

In May 2011, Governor Brown identified a $35 billion Wall of Debt - an unprecedented level of debts, deferrals and budgetary obligations accumulated over the prior decade.

Gov. Jerry Brown wants to change community college funding by giving extra money to schools that serve low-income students while also creating a new online community college for those who can't attend brick-and-mortar campuses. His proposal convoys $5 billion into a rainy day fund generated by voters in the past with the objective of passing the fully furnished $13.5 billion fund to his successor.

Democratic legislative leaders applauded Brown's proposal. I applaud the Governor for bringing our budget reserve to 10% of the total state budget. Holly J. Mitchell (D-Los Angeles), the chairwoman of the Senate's budget committee, hinting that she and her colleagues will be pushing for deeper investment in program funding.

Total California spending (general and nongeneral funds) has risen 44 percent under Brown, 2011-2018.

The much-outnumbered Republican caucuses have their own ideas for the surplus. As a result, the budget continues to bank higher revenues into reserves and pay down debts and liabilities. The entire state budget is $190 billion, which includes bond revenue and special funds. And it would allocate an additional $3 billion to K-12 school districts, completing a funding formula for local schools two years ahead of schedule.

"The next governor is going to be on the cliff", he said.

Brown's presentation warned that leaner times are near.

"We can't turn on a dime in a downturn", he said.

"The key to this budget is to fill up the rainy day fund", he said.

"In the 1960s, we spent over 20 percent of state revenue on infrastructure", Obernolte said. That's less than the $1 billion from earlier estimates.

"We have to set some money aside whether it's for wildfire costs or Medicare", Cohen said.

Brown stated that they haven't collided with recession yet but soon will.

The University's framework with the governor calls on the state to provide continuous funding while the UC takes steps to lower internal costs.

The governor is also proposing $4.6 billion in additional transportation funding from a massive transportation package passed past year.

The budget includes $1.2 billion in new funding from a hike in gas taxes and vehicle registration fees approved previous year.

"I can sum up the governor's budget in one word: smart", Yee said.

Brown's budget proposal comes amid federal budget uncertainty.

A plan in the state Senate would allow people to work around the change by making a charitable contribution to the state in lieu of state taxes.

The state's fiscal health is especially crucial as it faces myriad challenges: record natural disasters, housing shortages and changes to federal tax regulation - all while it ramps up opposition to the Trump administration on several major policy fronts.

Personal income taxes came in 25% higher at $11 billion in December.

Under Brown's plan, the state's General Fund grows to $131.7 billion, up about $6 billion from a year ago.