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Governor Releases "MayRevision" Of Budget
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May 13, 2014      


 FROM:           Mike Dillon, CLA Lobbyist                        
                        Christina DiCaro, CLA Lobbyist  

 RE:                 News From the Capitol    


This morning Governor Jerry Brown presented his “May Revision,” which reflects changes to his 2014-15 January Budget.  The “May Revision,” or “May Revise” as it is also termed, is the annual report issued by the Governor’s office to provide a more accurate analysis of the state’s fiscal condition, particularly after the April tax receipts have been accounted for, and it offers a comprehensive assessment of the slowly improving economy.  While the May Revise notes an additional $2.4 billion in increased revenues collected over the original revenues forecast in January, expenditures are also keeping pace with that figure.  The Governor proposes a prudent spending approach, and most of his targeted spending is directed toward a 46% increase ($1.2 billion) in Medi-Cal to cover increasing enrollment as a result of the state’s adoption of the expansion under the Affordable Care Act.  Another significant adjustment is the inclusion of an increase of $659 million for the Proposition 98 (school funding) minimum guarantee due to the change in state revenues, lower property taxes, and higher K-12 enrollment.     

 Over the next week and a half, the Budget Subcommittees will debate the Governor’s May Revision and then the powerful two house Budget Conference Committee will be activated in early June in order to negotiate some of the remaining, conflicting major issues.  The Constitutional deadline to pass a Budget is June 15th, and Governor Brown cautioned this morning that the legislature should use restraint: “Take a look at the big picture – not for 5 minutes, not for 5 months, but for 5 years.  A long-term picture.”  Added the Governor, “If you can find more cookies in the jar, then ‘Hallelujah.’”   

The Governor’s May Revise does not propose any additional funding for public libraries, beyond that which is provided in his January Budget for the proposal to link all public libraries to the high-speed, broadband backbone operated by the Corporation for Education Network Initiatives in California (CENIC).  You will recall that Governor Brown proposes that $2.25 million in ongoing General Fund money be allocated for this purpose, and he identifies an additional $1 million in one-time money for the purpose of connecting libraries that may have some difficulty joining the CENIC backbone.  As of this writing, the broadband proposal has been approved in a bi-partisan fashion by the Senate and Assembly Budget Subcommittees on Education Finance and, barring any unforeseen circumstances, it will be included in the Budget bill sent to the Governor for his signature.