Governor Brown Sequesters $50 Million from University of California funding

(S) Gov Brown revised budget 5-11-2017 (1 of 1)
Photographer: Steven Styles/ Belator Media

In  today’s press conference–open to credential media only–Governor Brown unveiled a revised state budget for California, including less of an expected budget shortfall:

Under the May Revision, the $5.8 billion revenue shortfall forecast in January is now a $3.3 billion shortfall – based primarily on higher capital gains. Even so, the budget is considerably more constrained than in any year since 2012.

Aside from the expected cautious spending allocations, the budget included a surprising action regarding the UC Audit scandal. Governor Brown’s budget press release included this line:

In response to the State Auditor’s review of the University of California (UC) Office of the President, the May Revision sequesters $50 million in UC funding until such time that the Auditor’s recommendations and other UC commitments are implemented.

(S) Gov Brown revised budget 5-11-2017 (2 of 1)
Photographer: Steven Styles/ Belator Media

Reporters fired off rounds of questions including the governor’s decision to  give a $6 billion supplemental payment to CalPERS with a loan from the Surplus Money Investment Fund a step that–according to the governor’s press release–will “save the state $11 billion over the next two decades while continuing to reduce unfunded liabilities and stabilize state contribution rates.”

(S) Gov Brown revised budget 5-11-2017 (10 of 1)
Photographer: Steven Styles/ Belator Media

The governor’s plan to reimburse the payment will come from “Proposition 2’s revenues dedicated to reducing debts and long-term liabilities.” (Proposition 2 established a state constitutional goal of having 10 percent of tax revenues in the ‘Rainy Day Fund’.)

The governor predicts that by the end of 2017-18, the state’s Rainy Day Fund will have a total balance of $8.5 billion, or 66% of the constitutional target).

(S) Governor Brown Becerra Press Conference 12-5-2016 (45 of 1)
Photographer: Steven Styles/ Belator Media

The governor’s revised budget also includes $6 Million for Attorney General Xavier Beccera’s office to help ‘fight’ the Trump administration on immigration & sanctuary cities.

The federal government is contemplating actions – such as defunding health care for millions of Californians, eliminating the destructibility of state taxes and zeroing out funding for organizations like Planned Parenthood – that could send the state budget into turmoil. (Source: governor’s office press release on revised May 2017 budget)

In January’s budget, The Governor called for a one-year delay in providing rate increases to child care providers that were reflected in the 2016 Budget Act, but this May Revision proposes to restore and maintain the $500 million child care funding package from the 2016 Budget.

Article by L. R. Styles/ Belator Media; Photographer: Steven Styles/ Belator Media

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