{"id":12214,"date":"2017-01-10T12:23:06","date_gmt":"2017-01-10T19:23:06","guid":{"rendered":"http:\/\/plantingseedsblog.cdfa.ca.gov\/wordpress\/?p=12214"},"modified":"2017-01-10T12:23:06","modified_gmt":"2017-01-10T19:23:06","slug":"governor-brown-proposes-2017-2018-state-budget","status":"publish","type":"post","link":"https:\/\/plantingseedsblog.cdfa.ca.gov\/wordpress\/index.php\/2017\/01\/10\/governor-brown-proposes-2017-2018-state-budget\/","title":{"rendered":"Governor Brown proposes 2017-2018 state budget"},"content":{"rendered":"

SACRAMENTO\u2014Governor Edmund G. Brown Jr. today proposed a balanced state budget that eliminates a projected $2 billion deficit and bolsters the state\u2019s Rainy Day Fund while continuing to invest in education, health care expansion and other core programs.<\/p>\n

In a letter to the Legislature<\/a>, the Governor explained that while this year\u2019s budget \u201cprotects our most important achievements,\u201d it is also \u201cthe most difficult that we have faced since 2012\u201d and \u201cuncertainty about the future makes acting responsibly now even more important.\u201d<\/p>\n

Significant details of the Governor\u2019s 2017-18 State Budget include:<\/p>\n

Keeping the Budget Balanced<\/strong><\/p>\n

The budget proposes $3.2 billion in solutions to ensure a balanced budget. By tempering spending growth rather than cutting existing program levels, these actions minimize the negative effects on Californians. The solutions include adjusting Proposition 98 spending, recapturing unspent allocations from 2016 and constraining some projected spending growth. In total, General Fund spending remains flat compared to 2016-17.<\/p>\n

Bolstering State Reserves<\/strong><\/p>\n

Proposition 2 establishes a constitutional goal of having 10 percent of tax revenues in the state\u2019s Rainy Day Fund. With a $1.15 billion deposit in the budget, the Rainy Day Fund will total $7.9 billion by the end of 2017-18, 63 percent of the constitutional target. While a full Rainy Day Fund might not eliminate the need for further spending reductions in case of a recession or major federal policy changes, saving now would allow the state to soften the magnitude and length of necessary cuts.<\/p>\n

Increasing Education Funding<\/strong><\/p>\n

K-14 funding is expected to grow to $73.5 billion in 2017-18, up 55 percent \u2013 or $26.2 billion \u2013 from 2011-12. For K-12 schools, funding levels will increase by about $3,900 per student in 2017-18, over 2011-12 levels. This reinvestment provides the opportunity to correct historical inequities in school district funding with continued implementation of the Local Control Funding Formula.<\/p>\n

Continuing Health Care Expansion<\/strong><\/p>\n

Under the optional expansion provisions of the federal Affordable Care Act, the budget increases enrollment of this Medi-Cal population to 4.1 million Californians, with the state\u2019s General Fund share of cost increasing from $888 million to nearly $1.6 billion.<\/p>\n

Counteracting Poverty<\/strong><\/p>\n

California has an extensive safety net for the state\u2019s residents who live in poverty. Since 2012, the General Fund has invested about $18 billion annually to help those in poverty. The budget continues to fund:<\/p>\n