CSAC Weighs In on State Budget Priorities
Seeking Investment in Ways to Assist Counties with Realignment, ACA Obligations
As the release of the Governor’s May Revision to his initial Budget proposal nears, the State’s revenues continue to surpass expectations – coming in at over $1 billion beyond the Governor’s January projections. If this trend holds, the surplus could be as high as $7 billion. While nearly half of the expected surplus will automatically be directed to schools under the Proposition 98 guarantee, there promises to be an impassioned debate between the Governor and Legislature over the remaining surplus revenues as the June 15th constitutional deadline for budget adoption approaches.
The Governor intends to direct the remaining surplus towards a rainy day fund, spending down the wall of debt, and other one-time program expenditures. The Department of Finance is diligently working to ensure the plan fully realizes the Governor’s vision of fiscal prudence. There appears to be some support from the Legislature to direct funds for the same three general purposes as the Governor; however, we know there will be continued pressure to increase expenditures on programs, particularly in areas that were cut deeply during the recession.