Governor Releases 2009-10 Budget Proposals, from the California Budget Project, reports on the governor's proposed budget. The governor plans to close the predicted $39 billion budget shortfall (which includes last year's budget shortfall) by cutting spending ($17 billion), raising revenues ($14 billion), and borrowing ($10 billion). The governor proposes to:
Revenues
- Temporarily increase the sales tax by 1.5% and charge sales tax on some services, such as car repair, amusement parks, and sporting events
- Reduce the tax credit claimed for children and other dependents
- Impose a 9.9% oil severance tax
- Increase alcoholic beverage taxes by a nickel a drink
Changes to First 5 and Prop 63 funds (would require voter approval)
- Eliminate the First 5 California Commission and redirect state funds and 50% of county funds to children's programs under the Department of Social Services
- Divert Prop 63 mental health funds to reduce state's costs for mental health managed care
Health
- Eliminate Medi-Cal dental and other benefits for adults
- Restrict Medi-Cal eligibility for low-income adults with children, keeping an estimated 429,000 low-income parents off of Medi-Cal
- Reduce health services provided to some legal immigrants
- Restrict access to health care services for undocumented immigrants
- Eliminate the California Food Assistance Program, which provides food assistance for some legal immigrants who are not eligible for federal food stamps
- Cut funding for Regional Centers, which coordinate services for people with developmental disabilities
CalWORKs
- Suspend the July cost-of-living increase
- Cut CalWORKs grants by 10%
- Eliminate cash assistance
--> for children in CalWORKs "safety net" program if their parents don't work enough hours.
--> after 60 months for some children whose caregivers are ineligible for CalWORKs
--> for some CalWORKs families if an adult fails to attend a "self-sufficiency review"
Early care and education
- Increase child care fees for families up to a maximum of 10% of their income
- Reduce reimbursement rates for providers in voucher-based programs
- Suspend the 2009-10 cost-of-living increase
Schools
- Reduce Prop 98 funds to the minimum required
- Reduce "revenue limit funding" for districts and county offices of education as well as funds for a number of educational programs
- Use some public transit funds to pay for transporting kids to and from school
- Eliminate cost-of-living increases for K-12 educational programs
- Allow districts to cut the school year by five days
- Eliminate the High Priority Schools Grant Program
- Suspend almost all education mandates
For more info
Labels: budget, calworks and welfare reform, early care and education, health, poverty, schools