Governor Releases May Revision: Tax Collections Down and Deeper Cuts Proposed

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Date: 05/14/12 Publisher: California Budget Project

Type: Policy brief Level: State

Description:
Policy brief addressing the May Revision of Governor Jerry Brown's proposed 2012-2013 budget proposal. The May Revision estimates a two-year budget gap of $15.7 billion, up from a $9.2 billion gap as estimated in January. The Governor outlines $16.7 billion in “solutions” to close the budget gap and provide a $1.0 billion reserve. The May Revision assumes that voters pass a tax measure that the Governor is attempting to place on the November 2012 ballot. The measure would temporarily increase personal income tax rates on very-high-income Californians and boost the sales tax rate by one-quarter cent, raising an estimated $8.5 billion in 2011-12 and 2012-13 combined. Regardless of whether voters pass the tax measure, the May Revision proposes $8.3 billion in spending reductions; a $1.2 billion cut to Medi-Cal, an $879.9 million reduction to the California Work Opportunity and Responsibility to Kids (CalWORKs) Program, and deep cuts to IHSS, child care, the courts, and the Cal Grant college financial aid program.

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