Governor’s Proposed Budget 2015-16 – ITUP Summary
|January 12, 2015||Posted by Lucien Wulsin under Health Financing, State Budget||
Download the Full Summary Here: ITUP Summary of Governor’s Proposed Budget 2015-16
The Governor’s Budget proposes to spend $113.3 billion General Fund, a small increase from the prior year’s $111.7 billion General Fund. General Fund spending will grow by 1.7% or $1.6 billion.
General Fund Revenues will grow by 4.5%. Special funds will be $45.5 billion of which $20.5 billion will be for health and human services and $8.8 billion for transportation. Special funds are state tax revenues directed and dedicated to a particular purpose, such as the gas tax or motor vehicle fees for roads or the millionaire’s tax for mental health or a portion of the sales tax dedicated to county mental health and law enforcement.
Under the proposed budget, California will end the year 2014-15 with a $2 billion surplus and end the 2015-16 fiscal year with a $4 billion surplus. The proceeds will be used to pay down the state’s debt and finance the Rainy Day fund necessary to meet expenses in the next economic downturn.
Prop 2 allocates the volatile capital gains tax revenues to pay off debt and build the Rainy Day fund. The Governor’s proposed budget for 2015-16 would pay off $2.2 billion in debts and increase funding in the Rainy Day account to $2.8 billion.
K-12 education will be state funded at $50 billion – an increase of $2600 per student above 2011-12 levels.
Higher Education General Fund spending will grow by 8.6% or $1.1 billion.
Health and Human Services General Fund spending will grow by 4.7% or $1.7 billion. Medi-Cal enrollment is projected to grow to over 12 million subscribers of whom 3.2 million are attributed to the state’s implementation of the affordable Care Act, nearly all of these costs are paid by the federal government.
The state has about $226 billion in unfunded obligations, primarily for retiree pensions and retiree health benefits for state workers, teachers and UC staff. Over the last several years, the state has enacted pension reforms for state workers and retired teachers; this year budget proposes to tackle retiree health benefits.