April Revenue Bring May Revisions
Governor Jerry Brown continued his ongoing fiscal prudence in releasing his May Revision budget proposal on Friday, May 13. The Governor said that, with it’s notoriously volatile revenue stream, managing budgets in California, was like “riding a tiger.” He cautioned again that California is already into one of the longest periods of economic recovery in history–and that it can’t last forever.
CSAC Executive Director Matt Cate issued a statement following the release of the Governor’s May revision, indicating that Counties understand the need for fiscal prudence, and lauding the Governor for putting a high priority on housing, tree mortality and transportation issues.
California’s tax revenue took a hit in April as both sales taxes and—more importantly—income taxes came in below projections. The state’s major taxes had been slightly above estimates until last month, so the decline sent year-to-date revenue dipping nearly one percent ($869 million) below projections. State tax revenues are up about five percent compared to last year.
Some budget proposals counties will be watching carefully for changes include:
- Help dealing with the millions of dead and dying trees in foothill and mountain counties, where at least $150 million is needed to reduce danger from wildfires and limit greenhouse gas emissions.
- The Governor’s plan to increase transportation funding.
- $250 million in grants for counties to improve jails.
- Funding to implement required group home reforms by January 1, 2017.
- $100 million of cap and trade funds to expand waste management infrastructure and help counties achieve new organic waste recycling requirements.
- Another $100 million from cap and trade funds to implement a new, local agency-focused program for disadvantaged communities.
- Funding for the state’s PILT obligation.
- $25 million for reentry incentives.
- 19 million to combat child sex trafficking.
- $169 million for Medi-Cal administration
Look for more details in the CSAC Budget Action Bulletin Friday afternoon.