SACRAMENTO, CALIF  (CDCAN) [Updated 12/09/2010  Thursday  08:45 PM   (Pacific Time)]  -  Governor-Elect Jerry Brown’s second budget briefing is scheduled for December 14^th, Tuesday at UCLA in Los Angeles that will focus on K-12 and higher education budget issues under the shadow of a staggering projected State budget shortfall of over $25 billion and on-going deficits of over $20 billion through at least 2016 unless permanent action is taken by the Legislature and Governor. 

The event, like Brown’s December 8^th budget briefing in Sacramento, is by invitation only, though the forum is expected to be live webcasted.   California Department of Justice staff who handle meetings and events are handling the arrangements.  Brown remains as Attorney General until his term expires on January 2. 

No other details are available yet, but the forum – like the Sacramento briefing – is not expected to focus on any solutions at this point in time – but on defining the scope of the budget crisis facing education.

Brown’s budget briefing on December 14^th and a possible third forum after that may be the only statewide budget events occurring between now and when he takes office on January 3.  Both the State Senate Budget and Fiscal Review Committee and the Assembly Budget Committee held brief informational hearings on Governor Arnold Schwarzenegger’s special session budget proposals today – but adjourned the hearings without taking action and plan on reconvening in January – after Brown takes office. 

Governor Schwarzenegger met with legislative leaders earlier today to urge them to take swift action on his proposals before January – but there appears to be no chance of either the Assembly or State Senate coming back into session before then, with Democrats preferring to consider what the new Governor will propose instead. 

Education Budget Issues Have Major Impact On Students With Disabilities, Mental Health Needs, the Blind and their Families in Special Ed & Higher Education

K-12 (Kindergarten through 12^th grade or high school) budget issues has major impact on the over 650,000 children with disabilities and mental health needs, the blind and their families in special education programs, covered under the federal Individuals with Disabilities Education Act (IDEA).   In addition, adult education programs – which were cut significantly in the 2009-2010 State Budget – has major impact on many programs that serve adults with developmental disabilities, seniors and others. 

Higher education budget issues that include community colleges, California State University system and the University of California system impact students with disabilities, mental health needs, the blind and their families.   Community colleges were hard hit by budget reductions in 2009 – including those impacting Disabled Student Services. 

How education budget issues are eventually resolved or proposed – given that it is about 40% of the State general fund budget, will have impact on the other budget areas, including the next largest – health and human services, which includes Medi-Cal, CalWORKS, In-Home Supportive Services, regional centers & developmental centers, mental health, senior programs, foster and adoption assistance programs and more. 

It is not clear yet if those education issues and its impact on students with disabilities, mental health needs, the blind, and others will be a part of the December 14^th budget briefing [CDCAN sent a letter to the Governor-Elect’s transition office urging that those issues be brought up]

A Third Forum May Focus on Health & Human Services

Brown plans to hold possibly three budget briefings or forums – to help focus attention by the public and policymakers on the size and on-going nature of California’s budget crisis.  A third forum – if held – may possibly focus on health and human services.   No information has been released yet on any forum beyond December 14^th. 

Budget Shortfall Could Grow Larger Than $25 Billion

Brown, who takes office on January 3^rd,  said at yesterday’s budget briefing that the State’s projected budget deficit could grow by another $2.7 billion to about $28 billion between now and the end of the 2011-2012 State Budget year that ends June 30, 2012.  Brown said that the swelling of the projected State budget deficit could happen due to changes in federal estate and inheritance tax laws that the US Congress is considering in the final days of its “lame duck” session that will end before Christmas. 

Mac Taylor, Legislative Analyst, however said today at the special session budget hearing held by the Senate Budget and Fiscal Review Committee that the impact of the possible changes in federal estate and inheritance tax laws pending in Congress on the overall State deficit total would probably be lower than Brown’s estimate – perhaps $1 billion.  Taylor said his office previously placed the issue as one of the risks the State faces in the coming year in terms of impact on the budget shortfall – but that without seeing  the final details of whatever is passed – makes it difficult to come up with a accurate figure.  [CDCAN Note: The issue is currently part of the over-all compromise reached by the President and Republican Congressional leaders on the Bush-era tax cuts.  The outcome is not certain, with House Democrats rejecting the compromise in a procedural vote of the Democratic caucus. The US Senate has not yet voted on the compromise]

It appears certain that Brown, when he takes office next month, will submit a proposed budget that will call for major permanent spending cuts – both immediate (mid-year) and for the State budget year that begins July 1, 2011, given the immense size and on-going nature of the State’s shortfall. 

He appears likely to do so even if he decides to consider raising taxes – an issue that he promised in the campaign last fall that he would submit to the voters for approval in a special statewide election likely in June. 

NEXT STEPS

• December 14, 2010 (Tuesday) – Second Budget Briefing/Forum Hosted by Governor-Elect Brown in Los Angeles at UCLA
• January 1, 2011 (Saturday) – Bills passed in the 2010 legislative session and signed into law by the Governor takes effect on this day (except for “urgency” bills which take effect immediately.
• January 2, 2011 (Sunday) – Last full day in office for outgoing Governor Arnold Schwarzenegger (term expires at the end of this day)
• January 3, 2011 (Monday) – Governor-Elect Brown (and all other statewide elected officials) take office.   Legislature reconvenes at State Capitol in Sacramento.
• January 4, 5 or 6, 2011 (Tuesday, Wednesday or Thursday) – Governor Brown will likely (not yet officially announced) give his first “State of the State” address. This address – which will likely be brief – should provide some outlines of what he intends to propose when he releases his proposed State Budget the following week.
• January 10, 2011 (Monday) – Governor Brown will release – as required by the State Constitution – his proposed State Budget for the 2011-2012 State Budget year (the state budget year begins July 1, 2011 and ends June 30, 2012).  He will also likely propose mid-year (special session) budget proposals to address the shortfall in the current 2010-2011 State Budget year that ends June 30, 2011.   Brown could also issue a new proclamation replacing the one issued by Governor Schwarzenegger on December 6^th calling a special session and declaring a budget or “fiscal emergency” under the State Constitution.  Declaring a “fiscal emergency” sets a 45 day deadline for the Legislature to respond by sending a bill or bills to the governor (if they fail to do so, they cannot adjourn or take up other business – though there is not much happening in January in terms of legislation.)  Under the December 6^th proclamation the 45 deadline would fall about January 21^st. 
• June 7, 2011 – Likely date for statewide special election, if one is called by Governor Brown.

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