Governor Releases Cautious Budget Proposal
Directs Revenue to Reserve, Deferred Mainentance
The Governor released his proposed budget for the 2016-17 fiscal year on January 7.
CSAC’s summary of the Governor’s proposal outlines the many areas that would affect counties.
Highlights include the following:
- $250 million in General Fund revenue for improved jail capacity.
- $170 million for Medi-Cal Administration Costs.
- $3.1 billion plan for Cap and Trade auction revenues, including:
- $100 million for Climate Communities program for the state’s top 5 percent of disadvantaged communities for energy, transportation, water, waste reduction and other GHG reducing projects
- $150 million for CAL Fire to address forest health and tree mortality.
- $29.3 million in Proposition 47 savings for mental health, substance abuse treatment, reduced truancy, and improved victim services.
- One year for Payment In Lieu of Taxes (PILT).
Two of CSAC’s top priorities were included in the budget proposal: new transportation funding to address the significant funding backlog at both the state and local level as well as a revision of the MCO tax. Both of these issues remain a priority for the Governor and he intends to focus on them in the next month.
Matt Cate, CSAC’s executive director, released the following statement: “The Governor’s budget proposal recognizes that while revenue is up, there are still economic uncertainties and being prudent with the resources we have now is the key to long-term stability. In the long run, stable funding remains essential to successfully develop and deliver the important programs and services we provide, including health care, behavioral health, public safety, transportation, and more.”
Read CSAC’s full budget summary for more details about these and many other items in the Governor’s proposal.