1.12.2015 Last week, Governor Brown released his 2015-16 state budget proposal. The $113.3 billion budget prioritizes continued austerity and the reduction of state debt. Despite higher than projected revenues, the Governor’s budget proposal does not go far enough to restore years of cuts to California’s safety-net programs or to reduce poverty in California.
While the current budget proposal is balanced and includes $2.4 billion to build the reserve, it does not account for additional funding that has created a greater than anticipated budget surplus. Recent estimates through November 2014 identify $1.2 billion above projected revenue for the 2014-15 budget. Additionally, the Legislative Analyst’s Office (LAO) announced that December’s revenue was $2.4 billion more than expected. This brings unanticipated revenue to a total of about $3.6 billion above original 2014-15 budget estimates. The budget proposal does not include any of this additional funding.
Even with increased revenue, the proposed budget does not include any new proposals that are aimed at strengthening the safety-net and reducing poverty in California. Nearly a quarter of Californians live in poverty and at least 4 million continue to struggle with food insecurity. As state revenues increase, the budget should focus not only on shrewd savings and debt repayment, but also on investments in vital public programs that help struggling Californians get back on their feet.
In order to fully realize the Governor’s vision of long-term fiscal stability for all Californians, the 2015-16 state budget must address the growing inequities faced by California’s low-income families. The economic recovery has yet to reach many Californians and the budget does not include solutions to major challenges, such as high rates of poverty and unemployment and a safety-net that has been weakened by years of cuts. The budget should reflect a long-term plan to address these challenges by investing in public services and systems. We now look to the Legislature to take action on behalf of low-income Californians as several months of budget negotiations get underway.
With respect to access to nutrition and income support for low-income Californians, there are few budget highlights.
CalFresh: The budget invests $9.2 million from the General Fund for a state energy assistance subsidy benefit to continue the Heat and Eat Program for low-income Californians. The state investment will draw down hundreds of millions in federally-funded CalFresh benefits. This is not a new proposal, rather an extension of commitments made in the 2014-15 budget.
CalWORKs: The budget does not include a CalWORKs grant increase for 2015-16. The 5% increase mentioned in the budget proposal was approved in the 2014-15 budget and goes in effect in April 2015.
SSI/SSP: SSI/SSP funding will increase by 1% due to caseload growth, but there is no increase in the state contribution to the SSI grant. State SSP funding remains at the minimum level required by federal law. Grants levels continue to leave recipients below the federal poverty level.
Early Childhood Education: The budget does not include any major restorations to the field of early childhood education (ECE) and maintains funding at nearly the same level as the 2014-15 budget.
The Legislature will begin discussing state budget proposals this month. The Governor will release his revises budget by May 15. The final budget must be presented to the Governor by June 15.
Read the Governor’s Proposed 2015-16 Budget. link
Questions? Contact Alexis Fernandez at 510.433.1122 ext. 111
