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Governor Brown Unveils Budget, Proposed Spending Cuts

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(Sacramento, CA)
Thursday, January 5, 2012

Governor Brown says California's budget deficit has dropped from more than 20-billion dollars to just over nine billion.  Now he's proposing more than four billion dollars in cuts-that would include reductions in Medi-Cal, Cal-Works, and subsidies for child care for the poor.  He acknowledged the cuts will be painful.

"When we have to reduce our spending that spending is going to come from programs that are doing good, in schools and health care and all the other areas that constitute public service…"

Brown's plan also relies on a proposed November ballot measure which would ask voters for increased taxes on sales and high incomes.  If that fails, Brown says he would cut another five billion dollars in spending including money for public schools and universities.


Lawmaker Reactions: Brown, Steinberg Split on When to Cut
By: Ben Adler

The governor wasn't planning to release his budget until next week - so Thursday's accidental early release caught lawmakers by surprise.  But it didn't take long for a disagreement to develop between Brown and a top Democrat.
Listen now:

Click to Listen

The governor wants lawmakers to pass the first round of cuts - like CalWORKS and In-Home Supportive Services - by March, rather than the start of the new fiscal year in July.

Brown: "If we don't make the cuts sooner, then you build up the deficit.  And when you finally have to pay the piper, you have to pay more."

Steinberg: "Not doing those cuts early in the year."

Senate President Darrell Steinberg wants to see if updated revenue projections in May make further cuts unnecessary.

Steinberg: "Enough bloodletting!"

Meantime, Republicans like Senator Doug LaMalfa continue to oppose new taxes.

LaMalfa: "Personally, I just wish he would start with the Plan B approach - assuming that the voters are not going to support the tax increase.  And then coming in with a budget plan that reflects that."

Democratic leaders say they plan to start budget hearings soon even if the cuts don't come until later.
Listen to Governor Brown's press conference (29:30)
Listen now:

Click to Listen

0105 Brown Budget ImageClick here to view the complete 168-page budget proposal (pdf)

Follow this link to view the Department of Finance Summary and Detail of Governor Brown's proposed budget.

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