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.
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.
- CalChannel.com: Video of May 14, 2012 press conference with Gov. Jerry Brown discussing his revised 2012-13 state budget
- May revision of Gov. Jerry Brown’s proposed state budget – summary (PDF)
- WhatTheFolly.com: Transcript: CA Gov. Jerry Brown on the May revised state budget for 2012-2013
- WhatTheFolly.com: Transcript: Press conference Q&A with Gov. Jerry Brown on the May revision of the 2012-13 California budget
- WhatTheFolly.com: Competing tax measures could jeopardize Gov. Jerry Brown’s ballot initiative
- WhatTheFolly.com: California confronted with higher deficit in updated 2012-13 budget
- WhatTheFolly.com: Revised 2012-13 California Budget: Sources of the higher deficit projections
- WhatTheFolly.com: Revised 2012-13 California Budget: Programs subject to trigger cuts if tax ballot measure fails
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