May 14: In his state budget May Revise presentation this morning, Gov. Jerry Brown called for a variety of solutions to help erase a budget deficit that has grown to $15.7 billion. His administration needs to bridge that gap in the state’s $91.4 billion 2012-13 general fund spending plan. Cuts include an increase in this fall’s trigger cut to the CSU budget from $200 to $250 million.
If voters reject the governor’s proposed temporary revenue initiative in the general election this November, the CSU budget is now set to be hit with a $250 million mid-year cut.
Asked what would change in California if the tax proposal goes down in defeat, the governor responded, “Schools will suffer. This is not good for the schools or universities. It will be felt at UC and the Cal State campuses.”
With voter approval of the tax measure, the CSU would receive an essentially flat budget with $2.06 billion in state funding.
Pending further financial analyses, the May Revise appears to have no other immediate impacts to the CSU system, though a proposed change to the statute on healthcare costs could make higher benefit contributions a bargaining issue in the future.
Also, the governor proposed additional cuts to Cal Grants for low-income students that would apply a stricter means test and impose new graduation requirements on schools.
Civil service impacts
A key part of the May Revise involves a five percent compensation reduction for state workers. That applies to civil service employees only and does not apply to the CSU. Subject to contract negotiations, civil servants will be asked to cut back to a 38-hour week.
Many cuts in health and welfare programs, as well as a restructuring of court system financing, were among the May Revise proposals. The governor said the state deficit had grown well beyond the $9.2 billion he originally estimated in January because of an overly optimistic revenue forecast and federal rejections of cuts in Medi-Cal and in-home care.
CSUEU supports the revenues initiative
“CSUEU wholeheartedly supports Gov. Brown’s ballot measure as a means to balance the budget,” says CSUEU President Pat Gantt. “Its passage will be crucial for minimizing state budget impacts to the CSU and ultimately to our members. Each of us needs to be ready to do our part to ensure this measure’s success.”
Read the governor's full May Revise presentation (PDF).
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Categories: CSU News, State Budget |
Posted: 5/14/2012 |