PublicCEO has received the following information sent out by sent out by Democrat legislative leaders. To view a PDF of the document, click here.
The following document contains the Democrat talking points on the budget.
It shows how one party will present the budget. Take note of how local government raid is viewed as a solution.
Big Picture Points:
- Need to solve a $23.3 billion deficit, up from $19.5 billion in the May Revision. (With Governor’s target reserve of $2 billion, problem is $25.3 billion).
- How the problem grew:
– May Revise Deficit: $19.5 billion
– LAO less revenues: $3.0 billion
– Actual June revenue loss: $.5 billion
– Lost 08-09 RDA cut: $.3 billion
– Total Problem: $23.3 billion
- Final Package includes $24.2 billion of solutions.
- Provides an $875 million reserve.
- Major Victories for Democrats
– Avoided suspension of Proposition 98.
– Guaranteed $11.2 billion in Prop 98 Maintenance Factor.
– Protected CalWORKs from elimination and from extreme cut proposals.
– Left the IHSS program largely in tact, but did include expansive fraud prevention measures.
– Protected Health Families from elimination or from reduction in eligibility – though there are tough cuts to the program.
– Restored $62 million of the $70 million parks cut to avoid massive park closures.
– No new tax give-a-ways.
- Summary of Solutions:
– Cuts: $15.6 billion
– Revenues: $3.9 billion
– Borrowing: $2.1 billion
– Fund Shifts: $1.5 billion
– Deferral/Other: $1.2 billion
Total: $24.2 billion
- Overview of Solutions:
– $15.6 billion in cuts, up from $12 billion in the Conference Version.
– $660 million in additional Prop 98 reductions. We made clear we would only cut to this level if we were assured the $11 billion maintenance factor would be created. (The Governor and Republicans proposed suspending Proposition 98 and also not recognizing the $11 billion Maintenance Factor.)
– $450 million in an alternative way to provide the QEIA funding for the year.
– $425 million in recognition of the Governor’s furlough action.
– $1 billion from a one-time RDA shift.
– $350 million to achieve the RDA shift lost on June 30.
– $200 million in additional reductions to the CalWORKs single allocation, in large part to recognize that employment services are not needed during these recessionary times. (The Governor fought to cut an additional $200 million from this item.)
– $54 million reduction to the Healthy Families program, but with no changes in eligibility. It is hopeful that various foundations will help mitigate the impact of this cut with contributions to this program. (The Governor proposed $46 million in additional cuts and limiting the program to families at 200% of poverty.)
– $21 million by increasing the IHSS share of cost for the small percentage of recipients that have a share of cost. (The Governor proposed $180 million in additional cuts and would have cut off services to individuals with a Functional Index of Three and below.)
– $90 million in recognition of the savings generated from implementing various fraud prevention measures.
– $3.9 billion in revenues, down from the $8.2 billion included in the Conference Report.
The Major Changes are:
– Lost $1.9 billion with no Oil, tobacco, or corporate loophole tax
– Lost $1.9 billion with no independent contractor withholding.
– Lost $142 million with not “Parks Pass” tax increase.
– Lost $84 million with eliminating tax enforcement proposals (Republicans wanted to eliminate another $50 million).
– Lost $100 million from not doing the Governor’s Emergency Response Initiative (ERA) or the fire fee.
– $2.1 billion in borrowing, up from the $139 million in the Conference Version.
– This is due to the suspension of Proposition 1A.
– $1.5 billion in fund shifts, down from $1.8 billion in the Conference Version.
The Major Changes are:
– Lost $75 million due to updated spillover scoring.
– Gain of $100 million from the T-Ridge slant drilling proposal.
– $1.2 billion in other solutions. This is down slightly from the Conference Version due to the updated scoring of the paycheck deferral.
- Summary of “Reforms”:
– Repeal 1419 – Rejected
– Electronic Court Reporting – Rejected
– Asset Management:
* Provided authority to enter into sale/lease back arrangements.
* Provided authority to sell Orange County Fair Grounds.
– Procurement Reform – Approved limited proposal.
– Elimination/consolidations – Eliminated and consolidated various boards and commissions, including the elimination of the Waste Board.
– Pension and Employee Health Rollbacks – Taken off the table.
– Centralized Eligibility – Provided authority to develop a plan, no authority to move on project without Legislative approval of the plan.
– Medi-Cal Managed Care – Approved.
– Hospital Fee – Taken off the table.
– CalWORKs Reforms:
* Rejected most draconian proposals to limit length of program and to provide full family sanctions.
* Approved graduated sanction policy, but only after interventions to assist the families with the appropriate services and programs.
* Maintained 60 month lifetime limit, but only 48 months in any 60 month period.
– IHSS Reforms
* Rejected proposals to limit services.
* Approved various “fraud” proposals, such as background checks, pay slip changes, fingerprinting, and unannounced visits in certain cases.
– Mid-Year Cut Authority – Taken off the table.
– Elimination of Statutory Colas – Approved.
Summary of Solutions by Area (in billions)