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Governor Brown Releases Updated 2016-17 Budget

Friday, May 13, 2016   (0 Comments)
Posted by: CLA Staff
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GOVERNOR BROWN RELEASES UPDATED 2016-17 BUDGET
He recommends no new spending with tax revenues down $1.9 billion 

5/13/2016 - This morning Governor Jerry Brown appeared before the press corps at the State Capitol to release his “May Revision” of the 2016-17 State Budget.  The “May Revision” or “May Revise” is an annual document that is prepared by the Governor, which seeks to update the Governor’s January Budget, to reflect the state’s current fiscal condition after April tax receipts have been accounted for and various state and national financial factors are incorporated.   Governor Brown’s May Revise notes that the “tax revenue forecast has been reduced by $1.9 billion, reflecting poor April income tax receipts and more sluggish sales tax receipts than expected.”  The Governor spent a significant amount of time referring to a series of charts that predicted past economic turn-downs, and he cautioned, “Like everything else, things don’t last forever.  We need to prepare for our time of necessity.”  The “Revise” also warns, “By 2019-20, the annual shortfall between spending and revenues is forecast to be over $4 billion.  This shortfall does not take into account the likelihood of an economic slowdown or recession.”  The predicted shortfall is partly due to the Proposition 30 taxes that will expire unless the voters approve the extension via an initiative this November.  In light of this, the “Revise” states, “Until the voters decide this important question, no significant new ongoing spending commitments should be made.  The May Revision reflects this principle.”....[read more]