6.17.2015 On Tuesday, June 16, the Governor and the State Legislature announced their 2015-16 state budget agreement. The agreement is the result of negotiations between the Governor and legislative leadership and continues to reflect the Governor’s commitment to austerity and a reduction of state debt. The agreement maintains many of the same fiscal assumptions made in the May Revision, including revenue forecasts, overall spending, debt repayment and investments in the Rainy Day Fund.
For more background information on the 2015 May Revision, take a look at CFPA’s recent analysis. link
The Governor also announced that he is calling for two special sessions to address challenges with state infrastructure and the Medi-Cal program.
CFPA applauds the Governor for his commitment to the creation of a California EITC to assist the state’s lowest-income workers and for the expansion of Medi-Cal coverage to low-income immigrant children. The state EITC will alleviate deep poverty and help provide families with essential resources to avoid hunger and food insecurity. While the expansion of health coverage will ensure that more Californians are able to meet their basic needs and thrive in good health. Both are important steps toward ensuring the overall health and well-being of all Californians.
However, we must continue to push for a state budget that does more for the millions of Californians who continue to live in poverty and struggle with food insecurity. California must increase its investment in vital public programs that reach the range of Californians who struggle to make ends meets.
Enacting the 2015-2016 Budget
The new fiscal year begins on July 1. The Governor is expected to sign the budget bills and accompanying trailer bills by this date.
The Budget Agreement and Nutrition for Californians in Need
California EITC: Similarly to the May Revision proposal, the budget agreement includes implementation of the California Earned Income Tax Credit (EITC). The state EITC will provide a tax credit for the state’s poorest working families.
Early Childhood Education (ECE): The budget agreement newly includes a $265 million allocation to fund an addition 7,000 preschool and 6,800 child care slots and a rate increase for all providers. Budget detail is not yet available, but there is no indication that the agreement includes restoration of the state meal reimbursement for meals served through the Child and Adult Care Food Program.
SSI/SSP: Regardless of extensive advocacy and interest from the State Legislature, the budget agreement does not include an increase in the state contribution to the SSI grant. State funding remains at the minimum level required by federal law. SSI/SSP has yet to have any cuts made during the recession restored.
Public Benefits for Immigrants: As mentioned above, the budget agreement includes an additional allocation to expand health care coverage, through the Medi-Cal program, for low-income, undocumented immigrant children effective May 1, 2016.
Questions? Contact Alexis Fernandez at alexis@cfpa.net or 510.433.1122 ext. 111
