What’s in the budget?

by David Siders, Sacramento Bee

Here are highlights of the proposed state budget for the fiscal year that begins July 1. Lawmakers approved the measures Friday and Saturday. Gov. Jerry Brown has 12 days to act after receiving the bills.


Includes an extra $15 billion in revenue through June 2014 due to voter approval of Proposition 30, which increased income taxes on high earners and raised sales taxes.


Spending on schools would grow by about $1 billion over two years to $55.3 billion for the new fiscal year. It also provides $1.25 billion for schools to implement Common Core standards and about $2.1 billion that would be allocated under Brown’s proposed “local control” formula that sends more money to schools serving economically disadvantaged students. Provides $4.3 billion to repay money deferred from schools in previous years.


Proposes an average 5 percent general fund increase to California State University, the University of California and community colleges. No fee increases are envisioned through 2016-17. Authorizes scholarships, beginning in the 2014-15 academic year, for UC and CSU students whose families earn as much as $150,000 a year. Rejects governor’s January proposal to cap the number of credits students can take at the resident tuition rate.


Extends a tax on managed care plans – using the state sales tax rate starting in 2013-14 – providing the state $343 million. Estimates that federal changes to Medicaid will cost the state about $224 million extra in 2013-14. Restores dental care for adults beginning in May. Repeals the seven-visit annual limit on doctor’s office visits.


Increases monthly grants by 5 percent beginning March 1, 2014. Continues major changes from last year that created a two-year time limit for adults to get cash grants and work assistance, but provides an extra $143 million to expand county-run employment services and case management. Provides an additional $48 million to identify potential employment barriers for individuals and subsidize employers who hire welfare recipients.


Proposes to spend $200 million more based on new projections that more people will be certified for care than once thought. Budget incorporates lawsuit settlement that reduced a cut in providers’ hours and wages from 20 percent to 8 percent.


Includes $63 million to partially restore cuts from previous years.


Assumes size of state workforce will remain flat, but includes money for previously approved salary increases. No new salary increases or furlough days are anticipated during the fiscal year, but Brown and the largest state employee union, SEIU Local 1000, have tentatively agreed to a 4.5 percent raise that would be implemented on July 1, 2014 and July 1, 2015.


Provides $142 million to establish crisis intervention centers and fund mobile crisis teams.


Provides $71 million above the governor’s plan, including $30 million for 8,100 part-day subsidized slots for children of pre-school age, $25.6 million for 3,300 full-day slots and $15.8 million to make up for federal child care cuts due to sequestration.


Provides half of Proposition 39 funding – $428 million this year – to school energy efficiency projects outlined in the ballot measure that closed a tax loophole for out-of-state companies.


Provides $6.5 million for a DMV office in Grass Valley. Prohibits owners of Anaheim’s Honda Center from obtaining enterprise zone tax credits if they lay off workers and replace them with lower-wage workers. Approves $1.5 million to begin construction of a veterans cemetery at Fort Ord in Monterey. Authorizes a new building at UC Merced to accommodate increased enrollment. Provides $17 million to replace four CHP aircraft.