Governor Releases May Revision: Signals Progress on Medi-Cal Expansion, Commitment to School Finance Proposal, and Weakened Fiscal Outlook

The California Budget Project (CBP) released its analysis of the Governor’s May Revise of the proposed 2013-14 California state budget, released on May 14, 2013.

“On May 14, Governor Jerry Brown released the May Revision to his 2013-14 budget proposal. This May Revision improves on the Governor’s January budget proposal in some important ways, but also underscores key challenges still facing our state.

The May Revision moves California toward a state-led expansion of Medi-Cal and affirms the Governor’s proposal to restructure school finance to provide additional dollars for districts with high concentrations of disadvantaged students. The May Revision revamps the Governor’s January proposal to restructure adult education in California, while putting forth major reforms to the state’s Enterprise Zone Program. The Governor’s revised budget reflects a fiscal and economic outlook for the coming year that is worse than had been expected, due to recent federal actions and weak economic growth. The Governor’s revised budget does not include any major restorations in funding for health and human services programs. This is at a time when poverty and long-term unemployment are still high in the wake of the Great Recession, and with the safety net and critical employment services severely weakened by recent years’ spending cuts.

The following sections offer an overview of economic and revenue projections provided in the May Revision, highlight key changes and new policy proposals in the revised budget, and discuss the issues they raise for the state budget debate. The CBP will release additional commentary and analysis in the coming days…”