Tuesday, February 1, 2011

What’s up in Budget Menu for California?

A 266 page budget proposal was released by Gov .Jerry Brown on Jan 10 for California. Fingers are crossed with high expectations as things are looking to come up after recession.

Some of the key features of the proposal are

* Strong explanation for reducing or increasing the allowances or realigning the responsibilities
* As of now proposals are only for financial term of 2011-12 & it might change in coming years
* Change in policies has been mentioned in proposal

With revenue of 2010-11 falling short of expectation by $3.1 billion, the projections for year 2011-12 is $25.4 billion.

Some of the state sponsored institutes & programs are facing with massive cut in their allowances. These include Medi-cal, California’ s welfare-to work- program , University of California, Department of development services , state operation & employee compensation. Medi-cal being the biggest casualty by facing a cut of $1.7 billion.

It’s also proposing to borrow some funds from Property Tax Shift & “Special Funds”.

More responsibilities will be aligned to respective counties. They will be accountable for Child Welfare Services, Adult protective services, funds of court security. They will be also provided support in terms of Fund s for alcohol & drug rehabilitation.

One of the areas of concern in the age of global warming is cut of $12.8 million towards Environmental protection. Local governments will be in charge of fire protection & medical help in forest & wildlife areas, by doing so they will be saving the funds required for Fourth Fighter of CAL FIRE.

Education is another area not having much change; K-12 allowances are still the same from previous budget. A cut of S1.7 billion towards total funding of General fund for higher education.

This being just a preview of the budget, you can go through PDF of the proposal uploaded at governor’s website Ebudget.Ca.Gov/

Hope everyone from California is able to digest this Budget Menu.

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