 : $85B budget in CA; $24B deficit  18% decline in state revenues in previous 2 years  $87B budget Dec, 2011“triggers” : more cuts and increase CCs to $46/unit  $93B  Proposed $98B ▪ Projected$ 7B increase in revenues from Prop 30 and 39 ▪ Proposed spending is below , in adjusted dollars LAO: Projected deficit (“structural deficit”=consistently spend more than we have)

 CA’s top income tax bracket had fallen from 11% of income in 1983 to 9.3% in  In 1980 California corporations contributed nearly 15% of the state budget; today they pay 11%.  CA legislature has cut taxes for individuals, families and businesses by more than $12 billion over the past fifteen years

 UC ▪ Faculty and staff furloughs ▪ 32% increase in fees over 2 years ( now $12,900+) CSU Faculty and staff furloughs Fees increased 40% over 2 years ( now $5000+) Enrollment reduced by 40,000 over two years

 800 classes cut from % more classes/services cut for  Summer school 2010 cut (800 classes)  2011 restored (80%)  Faculty pay cut in  Faculty/staff layoffs

 Prop 30 Tax increase ($6B per year for 7 years)  Raises taxes on wealthy (over $250,ooo, top rate 13.3%)  Raises sales tax from 7.25 to 7.5% for 4 years  Prop 39 ($1B per year for energy efficiency and gen fund)  Eliminates corp tax loophole for out of state businesses  Taxes based on sales (70% of tax paid by large corps)

 Voters approve Prop A parcel tax by 72%  $14-16M per year for CCSF  $79 per year on each parcel in SF  Revenue begins in Dec, 2013

“Weighted Student Formula”  More money (“supplement”) for districts with low-income, ELL, or foster youth (+local control)  No district will receive less than it did in  Funding increase by $2700/student over 5 years for vast majority of districts  “Teaching in Compton is a much bigger challenge than teaching in Beverly Hills” - Gov. Jerry Brown

 Increases spending by 5 percent, to $98 billion in  Expands Medi-Cal, the state’s health care program for low-income Californians  Maintains last year’s funding levels for most parts of the budget, including child care  Pays down $4.2 billion in budgetary debt.

 Increase Fees /Increase Taxes  Layoffs vs. across the board pay cuts/Furloughs  Cut Services or cut salaries ?  statebudget-fl,0,95571.htmlstory statebudget-fl,0,95571.htmlstory

 Prop. 25 – changed 2/3 to simple majority to balance budget (passed in Nov. 2011) N/A to tax increases  Revenue increases (req. 2/3 vote of legis to put on ballot)  Oil and gas severance tax  Revise Prop. 13 to allow increase in commercial pty taxes (“split roll”)