Governor Brown Signs 2012-13 Budget

Office of Governor – Summary

SACRAMENTO – Governor Edmund G. Brown Jr. on Wednesday signed a balanced state budget that protects funding for education and public safety while cutting $8 billion from government to close a $15.7 billion deficit and build a reserve of nearly $1 billion.

The budget slashes spending in almost every part of state government and enacts significant welfare reform while increasing funding for K-12 education by 14 percent, pending voter approval of the Governor’s initiative.

“This budget reflects tough choices that will help get California back on track,” said Governor Brown. “I commend the Legislature for making difficult decisions, especially enacting welfare reform and across-the-board pay cuts. All this lays the foundation for job growth and continuing economic expansion.”

“My revenue proposal is fair and temporary,” said Governor Brown. “Our state budget problem was built up over a decade, and it won’t be fixed overnight. These temporary increases will ensure funding for our schools until the economy improves.”

The budget builds on the significant progress that has been made in tackling the $26.6 billion deficit inherited from the previous administration. Last year’s budget slashed $16 billion and shifted California’s credit outlook from negative to positive.

Last year’s budget cut funding for dozens of state programs, made state government more efficient through consolidation and reorganization and moved government closer to the people through Realignment.

San Jose – The budget is predicated on voters approving the Schools and Local Public Safety Act this November. If it fails, the budget includes a proposed trigger reduction of approximately $5.5 billion for K-14 education.

While the state continues to face budget pressures, this budget — with the passage of the revenue initiative — puts California on its most stable footing in years.

The Governor did use his line item veto authority to trim an additional $195.7 million from the final budget. While most of the components of the education budget remained intact, the Governor made the following reductions specifically related to education and child care programs:

Early Mental Health Initiative – Eliminates $15 million for the Early Mental Health Initiative program. In his veto message the Governor stated that he appreciated the importance of prevention and early intervention services, but believed that school districts are in the best position to determine whether these services should be funded at the local level.

Child Care and Preschool Education -Reduces child care and preschool programs by $30 million or 8.7 percent across the board. The Governor indicated that this reduction was necessary to help bring ongoing expenditures in line with existing resources.