Proposed Calif. Budget Cuts From Universities
SACRAMENTO, Calif. – California Gov. Jerry Brown announced a proposed budget that would cut $12.5 billion from the state’s budget, with $500 million in cuts from the University of California and another $500 million from the California State University system.
With additional proposed cuts of $1.7 billion from Medi-Cal, $1.5 billion from welfare-to-work programs and 10 percent cuts in pay for some state workers, the budget would eliminate an 18-month budget gap estimated at $25.4 billion, according to a statement from the governor’s office.
Brown also seeks voter approval to extend some taxes for five more years while the state pays off its debt. If the legislature approves the budget by March, a tax extension of current personal income taxes, sales taxes and license fees for vehicles will go on the ballot in a June election.
The governor’s office said his budget would also create a $1 billion “rainy day” reserve fund.
The realignment plan, which the governor called “vast and historic,” will return decisions and authority to cities, counties and schools, and will “allow government at all levels to focus on core functions and become more efficient and less expensive” by reducing duplication of services and administrative costs, the statement said.
Despite cuts in higher education, the one area of state spending that won’t be cut is kindergarten through 12th grade education.
“Schools have borne the brunt of spending reductions in recent years, so this budget maintains funding at the same level as the current year,” the Governor said.
The budget plan proposes total spending of $127.4 billion for the 2011-12 fiscal year, with $84.6 billion allotted to the General Fund. Brown also plans to trim state government operations by $200 million through reorganization, consolidation and other actions, as well as reductions in corrections, the judiciary and other resources.
The budget also proposes to change the role that state and local governments play in local development activities by eliminating state tax benefits for enterprise zones and phasing out the current funding mechanism for redevelopment agencies, returning return billions in property tax revenues to schools, cities and counties and help pay for public safety, education and other services, according to the statement.
“These cuts will be painful, requiring sacrifice from every sector of the state, but we have no choice,” said Brown. “For 10 years, we’ve had budget gimmicks and tricks that pushed us deep into debt. We must now return California to fiscal responsibility and get our state on the road to economic recovery and job growth.”