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Governor Brown releases 2013-14 budget proposal
 
1/10/13

Today, Governor Brown released his 2013-14 budget proposal. Thanks to the hard work of CSEA volunteers who helped pass Proposition 30, the budget scenario has changed dramatically.

In stark contrast to the budget introduced two years ago to address a $26 billion deficit, the 2013-14 proposal predicts that the state will eliminate the budget year deficit and future budgets will continue to be balanced. True to his commitment, the Governor's budget proposal continues to protect education funding, pays down the debt and expands health care coverage as the state implements federal health care reform. 

Prop. 98 Funding Increase
Increase in Proposition 98 funding of approximately $4.5 billion over 2012-13. The increase will be allocated as follows:

  • $ 2 billion ($1.6 for K-12 and $400 million for Community Colleges) for program expansion. For K-12 the funds will be allocated through the Local Control Funding Formula.
  • $1.8 billion to further reduce deferrals.
  • $450 million for energy efficiency projects and training pursuant to Proposition 39.
  • $300 million for Adult Education.

Local Control Funding Formula (formerly the Weighted Student Funding formula)
The Governor proposes to allocate a portion of the increase in funding through a new formula consisting of a base grant that is augmented by the percentage of students who are English learners, eligible for free or reduced price meals or foster youth.

Transportation
Home-to-School Transportation and the Targeted Instructional Improvement Programs are funded outside of the Local Control Funding Formula; however, the funding is completely flexible.

Categorical Programs
Special Education, Child Nutrition and Afterschool Programs (Proposition 49) would be funded as categorical programs outside of the Local Control Funding formula. A COLA of 1.65 percent is provided only for a select group of categorical programs including Special Education, Child Nutrition, American Indian Education Centers and American Indian Early Childhood Education Program.

County Offices of Education
County Offices of Education will receive an increase of $28.2 million to support the implementation of a new funding formula.

Community Colleges

  • The budget proposal provides an increase of $196.9 million (3.6 percent) to base apportionments; an increase of $133.2 million to reflect reduced property tax estimates (plus $47.8 million for 2012-13 to offset lower-than-anticipated property tax revenues from the elimination of redevelopment agencies); and a decrease of $12.6 million to reflect revised estimates of student fee revenue, resulting from lower-than-anticipated Board of Governors' fee waivers.
  • Provides $179 million to reduce the CCC deferral balance to $622 million.
  • Proposes phased-in changes to Census Accounting Practices by focusing on completion at the end of the term, as opposed to counting attendance at the early weeks of the term. Shifts responsibility for the Adult Education and Apprenticeship programs from K-12 to CCC.
  • Provides $49.5 million for Proposition 39 clean energy efficiency projects.


Other Budget Proposals
Governor Brown indicated that he will be calling a special session on health care at the end of January to pass needed conformity legislation for the federal Affordable Care Act, including the following changes to the Medi-Cal Program:

  • Making conforming changes to the eligibility and enrollment process so it is easier and faster for people who are currently eligible for Medi-Cal to enroll in the program.
  • Proposing the expansion of the Medi-Cal Program for the May Revise. The expansion will cover adults up to certain income levels. Currently, the program only covers income eligible adults if they are disabled, elderly or have an eligible child. The expansion will also cover families at greater income levels. This expansion is a part of the Affordable Care Act and is optional for states.
  • Continuing the Healthy Families program transition to be phased in this year.


What's Next?

Now that the Governor has introduced his budget, the Legislature will begin their analysis of those proposals over the next several months to craft a legislative budget.

The Legislature has until June 15th to present a budget to the Governor. Under the requirements of Proposition 25, the Governor must sign the budget by June 30th.

CSEA will be reviewing the detail of the budget to analyze the impact to schools and community colleges.


Caution:
This report is based on a preliminary analysis of the budget. Some proposals may change as additional details become available.