The Administration released the Governor’s 2014-15 Proposed Budget Wednesday evening, nearly 40 hours earlier than anticipated. California’s budget picture has improved dramatically over the past 18 months as personal income tax receipts have exceeded even modest expectations due in large part to capital gains revenue.
Furthermore, strong assessed real property valuations, primarily along California’s coastal counties, have also contributed to an improved state budget picture. According to the Governor, state General Fund expenditures will grow from $98.4 billion in 2013-14 to $106.8 billion in 2014-15. The proposed Budget assumes a near $1 billion reserve, and a deposit of nearly $1.6 billion into the state’s rainy day fund. The majority of the increase in General Fund spending will be devoted to public education (K-12 and higher education) and paying down debt obligations the Governor has prioritized.
Key Issues/Changes for RCRC Member CountiesUnder the Governor’s proposed Budget:
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State Payment In Lieu of Taxes (PILT) program is not funded;
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Williamson Act subventions are not funded;
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Support for Fairs is not provided;
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Funding allocations for the Governor’s recently-released Water Action Plan are identified;
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State Responsibility Area fees continue to serve as a major source of funding for State programs;
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Payments for pre-2004-05 local government mandate claims continue to be deferred; and,
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Local jail construction application funding is increased.
The 2014-15 Proposed Budget can be accessed here.
For additional information, please contact RCRC Senior Legislative Advocate Paul A. Smith at 916.447.4806 or psmith@rcrcnet.org.