The nonpartisan Legislative Analyst’s Office on Wednesday released its budget forecast for this year and beyond. The grim bottom line: Revenue for the current fiscal year is projected to fall $3.7 billion short. If the state finance department concurs in its report due next month — a likely scenario — the deficit will trigger at least $2 billion in midyear cuts, including more than $1.3 billion to public education. That would translate to five school furlough days between February and June and the elimination of bus transportation.
Meanwhile, the Legislature remains in recess until early next year. Brown should call lawmakers back into a special session to deal with this calamity.
Plenty of people saw it coming. Economists said the revenue projections for the state budget were wildly optimistic, and several reports earlier this year raised alarm. Yet Brown and Finance Director Ana Matosantos expressed confidence that the midyear trigger wouldn’t need to be pulled. Read more






Even as UDW and other IHSS stakeholders fight through the courts to prevent a 20 percent across the board cut in IHSS already mandated in the current state budget, Gov. Jerry Brown’s proposed 2012-2013 budget recommends even more cuts to the program.
Enacted in July of this year, the state budget included an assumption that the state would receive $4 billion in additional tax revenue during the fiscal year (July 1, 2011 to June 30, 2012). This estimate was based on what appeared to be a growing trend of increased tax collections. The budget, however, also included provisions that should revenue not materialize at the anticipated levels it would “trigger” additional spending cuts to account for that lost revenue. The budget instructed the Department of Finance to determine by December 15, 2011 if these trigger cuts would take place. 





