News Archive - December 2011Contents:
December 14, 2011 Budget Triggers to be Pulled by Governor Yesterday, December 13, 2011 Governor Jerry Brown announced that he will cut $1 billion in spending from the current budget. In the Department of Finance letter, DOF's December 2011 forecast is $2.205 billion less than the Budget Act forecast. When compared to the projections for the state's biggest three tax sources, the December 2011 forecast is $1.8 billion above the Budget Act. "We're pulling our budget into line," said Governor Brown "At least we got half the revenue," he said. "By and large, it was much wiser to assume the $4 billion than to make $4 billion in cuts. That would have been immediate devastation to many." "The trigger is the trigger," said Senate President pro Tem Darrell Steinberg at a Capitol event before the governor's announcement. "It's already been legislated." Five months ago Governor Jerry Brown signed a budget with an optimistic assumption that California would receive $4 billion in extra revenue, thus balancing the budget. Since this additional $4 billion in revenue was speculative, the Legislature built in automatic mid-year budget cuts, to occur in January 2012 if revenues are projected to be lower than the budget estimate. All of Tier 1 cuts were pulled, and part of the Tier 2 cuts will occur. Here are the revenue projections:
To read the Department of Finance's forecast letter click here: http://www.dof.ca.gov/documents/2012_Rev_Forecast_Determination.pdf. To view the Governor's press conference yesterday click here: http://www.calchannel.com/channel/viewVideo/3192. CCDAA will keep members updated as we receive more direction from CDE on how the cuts will be enacted. |