Revised 2012-13 California Budget: Sources of the higher deficit projections
California Gov. Jerry Brown’s January budget projected a $9.2 billion shortfall; however, the May revision estimated that the budget gap will grow to $15.7 billion.
The revised budget attributed the $6.5 billion deficit increase to three factors:
- Overly optimistic tax revenue forecast – $4.3 billion
- Increase in Proposition 98 obligations for K-14 education – $2.4 billion
- Failure to obtain Medicaid waivers from the federal government to allow the state to reduce its Medicaid matching funds – $1.7 billion
These figures add up to $8.4 billion. Factoring in the $1.9 billion in cost savings that resulted from lower-than-expected Medi-Cal (California’s Medicaid program) caseloads, the state budget gap is widened by $6.5 billion for fiscal year 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: Proposed cuts to bridge the additional $6.5 billion shortfall
- WhatTheFolly.com: Revised 2012-13 California Budget: Programs subject to trigger cuts if tax ballot measure fails
Category: Current Events, Economy, Election 2012, Government, Health care, Local, News, Politics, Social Services, State, Tax Dollars at Work, U.S. · Tags: budget, California, California governor, deficit, Education, federal government, Gov. Jerry Brown, health care, Jerry Brown, K-12, Medi-Cal, Medicaid, Proposition 98, public debt, public school education, State, state budget, state services, tax revenue