Revised 2012-13 California Budget: Proposed cuts to bridge the additional $6.5 billion shortfall

Faced with an additional $6.5 billion deficit, Gov. Jerry Brown has proposed another $4.1 billion in cuts to balance the state budget. This would bring the total budget cuts to $8.3 billion for fiscal year 2012-13.

Read more: California confronted with higher deficit in updated 2012-13 budget

Some of the additional spending cuts include:

  • $1.4 billion from redevelopment agencies.
  • $544 million from local trial courts – a one-time reduction.
  • $402 million from state employee compensation by reducing work hours and pay by 5%.
  • $396 million from Medi-Cal by reducing payments to hospitals and nursing homes. Medi-Cal, the state’s Medicaid program, provides health care coverage low-income families and individuals. This would bring the total Medi-Cal cuts to more than $1.2 billion for 2012-13.
  • $292 million from the recent National Mortgage Settlement to “offset existing General Fund costs for assisting homeowner and protecting consumers, rather than creating new programs.”
  • $99 million from In-Home Supportive Services (IHSS) for seniors and disabled individuals by reducing service hours by 7%. This would bring the total IHSS cuts to $224.5 million for 2012-13.

SOURCE: Gov. Jerry Brown’s Budget May Revision 2012-13 (pages 5 – 6)

SOURCE: Gov. Jerry Brown's Budget May Revision 2012-13


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