Counties will recall that the state budget passed this summer
relied on further federal aid to avoid significant cuts and
deferrals. Today, October 15, is the deadline for receiving those
federal funds and with negotiations in Washington D.C. still
stalled, the $11.14 billion of cuts and deferrals now go
into effect.
For counties, the most direct impact will be related to
realignment funding. The unprecedented $1 billion realignment
backfill is partially dependent on the budget trigger. Without
it, the backfill will only total $750 million.
The other affected budget programs include $6.55 billion in
deferrals for K-14 education, a nearly $1 billion reduction to
higher education, $1.89 billion reduction to state employee
compensation, just under $1 billion in borrowing from special
funds, $200 million reversion from the infill infrastructure
grant program, $150 million reduction to the judicial branch, $90
million reduction to the Golden State Teacher Grant Program, a
child support agency $50 million reversion, and a $50 million
moderate income housing reversion.
With the October 15 deadline passing, but with a federal aid deal
still possible before the new year, it remains to be seen how any
relief funds received would be spent. The Legislature is in
recess until the newly seated members meet in early December,
though they could be called back if the Governor calls a special
session.
