10 Things to Look for in Gov Brown’s May Revise on Tuesday

By Jeff Gorell

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On Tuesday, May 14, probably around 11am, Governor Jerry Brown will host a press conference and release his revised 2013-2014 budget proposal, aka the May Revise. For policy geeks like me, here are 10 things to look for on Tuesday:

1. What specifically does Gov Brown intend to do with the $4.5 billion surplus funds that have come in since Jan over projections and any future unexpected revenues? Will he create a Rainy Day Fund? Pay down education spending deferrals? Spend more on agencies and programs that have been demanding more money than he outlined in Jan? What about refunding all or a portion back to taxpayers?
2. What, if anything, does he change in public safety realignment? Former Lt. Governor Abel Maldonado is using criticism of this policy, which was a keystone to Brown’s 2011 budget, to launch his GOP gubernatorial campaign. The governor might see realignment’s early weaknesses and propose spending more money on local programs or altering some of realignment’s policy constraints.
3. LCFF – In Jan, Governor Brown unveiled a controversial plan to shift greater levels of future money to SED Socio-economically disadvantaged school districts. Dubbed the weighted formula, or local control funding formula (LCFF), it has received the cold shoulder from most legislators. The May revise gives the Governor an opportunity to recalibrate the formula to make it more palatable and perhaps viable. Various legislators, including this author, have been brewing up alternate funding formulas for consideration.
4. Will state courts receive additional funds over the Jan proposal? The judiciary has been the most vocal when it comes to crying foul over funding deficits. The Chief Justice read the Governor and Legislature the riot act in their own house. Will courts get more money than proposed in Jan?
5. Will the Governor use the May revise to acknowledge the need for a tuition/fee cap at state colleges and universities in light of the incoming Prop 30 revenues? He has given the concept of a tuition cap lip service, but will he call for something more concrete? Note – his Jan budget proposal sends less than 50% of the new Prop 30 revenues to education. Most go to programs and services outside the education portfolio.
6. In light of the LAO’ criticism of the Governor’s specific plans to spend the Prop 39 (single sales factor initiative) revenues as a blanket appropriation to schools, will the Governor refine his plans for this money? At least 5 bills have been introduced to deal with Prop 39 funding streams, including input from the Speaker. If the Governor doesn’t hone his plan to make it more consistent with the language of the ballot initiative, he’s unlikely to get his way.
7. Any inclusion of budget transparency measures
in the budget process? In light of California’s recent D- grade for budget transparency, will Governor Brown call for any new rules, laws or processes that impose greater budget transparency? The mandatory 3-day waiting period before the budget may be voted on is gaining in visibility and popularity.
8. Will the Governor use the May Revise as an opportunity to acknowledge the misdeed by the Franchise Tax Board when it gutted a small business tax credit and sent 2,500 small business investors a 5-year retro-active bill and demanded penalties and Interest? This was at no fault of the taxpayers and has given the State’s business climate reputation a black eye. Rumor in the Capitol is that the Governor will absorb into his budget package the intent of two bills by Senator Ted Lieu and this author, Assemblyman Jeff Gorell, that would unwind the FTB decision and bar state tax agencies from seeking fines and interest against taxpayers who participate in good faith in a state tax incentive program like this one.
9. Raises for public employees? This year the Governor’s Administration is in negotiations with a number of the larger unions representing public employees. His Jan budget proposal did not identify any specific additional money for raises to avoid showing his cards before the bartering started. The unions have high expectations in this process having helped the Governor pass Prop 30 and having supported the Majority party in a historic 2/3rds pick-up of legislative seats last November.
10. How will the more liberal Democrats in the Legislature, and the spending interests in the 3rd House, respond to whatever plan the Governor advances on Tue? There will be increasing pressure for the Governor and legislative leadership to spend on new programs and benefits, and to raise new taxes and fees. Whether the Governor’s May revise is met with more resistance from the Reps or the Dems depends on whether it is truly an instrument of “austerity” or just pays the concept lip service. He may find allies in unusual places.

(Jeff Gorell is a State Assembly Member representing the 44th AD. He serves as vice-chairman of the Assembly Budget Committee)

Published in: on May 11, 2013 at 8:27 pm  Leave a Comment  
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Cal State Univ Chancellor Visits Camarillo, Supports Gorell Tuition Cap Bill

The Chancellor of California’s State University system Tim White visited Camarillo last week. Asked by reporters about Assemblyman Jeff Gorell’s bill, AB 67, which would cap fees and tuition at all state public colleges for 4 years, he said he supported the measure. Students all over California are supporting a Freeze on Fees and signing the online petition here.

http://www.thecamarilloacorn.com/news/2013-04-26/Schools/CSU_chief_makes_stop_in_Camarillo.html

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Published in: on April 27, 2013 at 8:18 pm  Leave a Comment  
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VC Supervisor Peter Foy Calls Out Whitman and Poizner on Prop 1A: Says He’ll “Take a Long Hard Look” at Runnning for Gov Against Them

Roberts and Trounstine of CALBUZZ Blog reported the following on our local Republican County Supervisor Peter Foy:

Sup. Peter Foy

Sup. Peter Foy

Republican Ventura County Supervisor Peter Foy, who has emerged as a leading conservative voice against Prop. 1A, says GOP millionaire wannabe governors Steve Poizner and Meg Whitman aren’t doing nearly enough to kill the May 19 election measure.

“Poizner and Whitman should be doing everything they can, they should be with us and they should be throwing money at it,” Foy told calbuzz.

“It’s going to hurt them in their campaigns,” he added. “We want someone who’s going to do something on this and isn’t squishy.”

Amid blogospheric buzz about the possibility that the Ventura supe might jump into the governor’s race, Foy left the door wide open when we asked him about it.

“Spending is out of control . . . and we need leadership in Sacramento on this,” he said. “On the Republican side, where’s Poizner, where’s Whitman, where’s Campbell? If that kind of leadership doesn’t rise up then you bet I will take a long hard look” at running for governor.

Foy’s comments to calbuzz are likely to stoke the unhappiness among red meat movement conservatives with the candidacies of Insurance Commissioner Poizner and former eBay exec Whitman. The two Bay Area moderates are both scampering to the right in an effort to capture the crucial GOP right wing in the 2010 primary.

Foy, who is scheduled to address a big “tea party” rally in Sacramento today, has hooked up with veteran anti-tax crusaders Jon Coupal and Ted Costa as a co-chair of an ad hoc committee to defeat 1A.

While former U.S. Rep. Tom Campbell has come out in favor of Prop. 1A, Poizner and Whitman have both declared they’re against it. But Foy insisted the true measure of their opposition is if either steps up with some cash for TV ads against it.

“Poizner’s done some things, but it’s not enough –- you have to be a leader,” he said in a telephone interview. “I got something, a little mailer from Steve Poizner –- come on, you have to put it on TV.”

Prop. 1A is the linchpin of five measures put on the May 19 special election ballot by Gov. Schwarzenegger and Democratic legislative leaders. Ostensibly intended to create a bigger state reserve fund by imposing restrictions on spending –- a feature which has drawn the ire of liberals –- it would also would extend for two years $16 billion worth of tax increases used to balance the budget in February’s deficit deal.

Asked what he would do as governor to close a deficit estimated to reach at least $12 billion if the ballot measures go down, Foy said, “There’s no question it’s going to be cuts.”

He argued that much of the budget problem came about because state government had hired “50,000 people in the last five or six years.” (According to the official state figures, however, state employment increased 31,352 between 2002-03 and 2007-08)

Foy also said that it would be necessary to impose cuts on public education. “because it’s the biggest numbers” in the budget. He said considerable savings could be found by “getting rid of layers and layers of middle management” and by privatizing services such as janitors, maintenance and cafeteria workers.

Asked what the chances are – on a scale of 1 to 10 — that he’ll run for governor Foy said “5 or 6.” He said he would decide what to do by “the first of summer.”

Published in: on April 15, 2009 at 8:27 am  Leave a Comment  

State Budget Still a Mess. Controller Calling for More Taxes.

Controller John Chiang

Controller John Chiang

In an article today in the San Francisco Chronicle, California State Controller John Chiang says the near future will require more taxes and spending cuts, despite the recent budget bill passage.  Click here for the article.

Even last month’s tortured budget process isn’t likely enough to get CA through the year.  Here are the details of the enacted budget. Track the ongoing budget crisis issue here on 805 Politics.

Published in: on March 8, 2009 at 1:19 pm  Leave a Comment  

State Budget to End Up in Courts?

Debating the CA budget

Debating the CA budget

Let’s see if this works …
Are the chances better than 50/50 that the California State Budget will end up being litigated in the courts?  Experts say yes.  Your thoughts?
Published in: on January 4, 2009 at 3:13 am  Comments (1)  
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