Here are some reactions to Gov. Jerry Brown's budget proposal.
Assembly Speaker John A. Perez:
Assembly Democrats want to maintain stability and expand opportunity. There is much in the Governor's budget proposal that supports those goals. I'm pleased to see so many areas of agreement between the Governor and the Assembly, particularly how strongly he has embraced the rainy day fund that is the cornerstone of the Assembly's proposal.
With a strong rainy day fund in place we can avoid mistakes of the past and ensure that education and other vital services in California are protected from the volatility of boom and bust cycles.
I am pleased that the Governor proposes to continue paying down the wall of debt. This proposal completely pays off California's economic recovery bond debt from 2005, and repays our schools six billion dollars in funds that were deferred during the worst years of the Recession.
This proposal makes smart investments in strengthening our economic recovery, especially with respect to our shared commitment to infrastructure.
The Assembly will work with the Governor and the Senate to finalize another on-time balanced budget. Having agreement on such a major component as the rainy day fund makes that job easier."
Assembly Republican Leader Connie Conway, R-Tulare.
While the budget is out sooner than the Governor planned, it gives us more time to review the fine print. I hope that Gov. Brown is successful in convincing his fellow Democrats to resist the urge to spend away any fiscal progress the state has made. We've been down this road before and I'd strongly caution my legislative friends across the aisle from traveling it again. In the not-so-distant past, California has seen unexpected revenue spikes that have evaporated overnight - quickly turning modest surpluses into enormous deficits.
"Now is the time to tackle the wall of debt, avoid the budget mistakes of the past and invest in our future so that our economy grows. The Governor sounds receptive to those ideas and Assembly Republicans stand ready to work in good faith to achieve those goals.
Senate President Pro Tem Darrell Steinberg, D-Sacramento
"After years of struggle to erase the state's deficit, we all agree that it's imperative to use much of our increased revenues to pump up the rainy day fund and to eliminate the debt from loans, bonds and delayed payments to our schools. I appreciate the Governor's aggressive approach to more than double the reserve and pay down debt even more quickly than we had hoped.
"At the same time, we must invest in the people of California, especially those living in the economic margins. I've proposed and remain committed to a balanced framework of 'a third, a third, a third,' where we divide the surplus into reserves, repayment and reinvestment.
"We are pleased that the budget includes last year's Senate Democratic proposal to invest in substance abuse treatment, mental health and re-entry programs for criminal offenders who serve their time, saving more money by slowing the revolving door in our jails and prisons. I support the Governor's request for a two year delay in the federal court's prison population order. The court must approve this request.
"Such smart reinvestment pays dividends down the road and is just as important to fiscal stability as the long term strategy of excising our debt and saving for the future. Similarly, expanding transitional kindergarten can be accomplished with just a fraction of increased Prop 98 funds while saving billions of dollars in the long run by reducing the extra costs of special education, grade retention and juvenile crime.
"The Legislature will now accelerate its work in the five-month budget process through public hearings to closely examine the Governor's proposals. I look forward to working with my colleagues, the Administration and the Assembly to achieve our common goal - developing a sound fiscal roadmap to meet the needs of all Californians."
State Treasurer Bill Lockyer
"This is a sound, sober, fiscally wise plan. It resists the temptation to not worry about the next, inevitable economic downturn, and offers a more sensible, flexible way to build a strong reserve. It erases from the books the debt created by one of the biggest fiscal mistakes in the state's history - the deficit financing bonds authorized in 2004. And it's up-front with Californians about the true extent of pension and other long-term liabilities the state faces.
"If the final budget that emerges from negotiations between the Governor and Legislature closely resembles this blueprint, it will be a budget the state can be proud of and the rating agencies and investors will embrace."
Assemblyman Roger Dickinson, D-Sacramento
"The Governor's budget proposal is a good starting place and I concur with his measured approach. We should establish a rainy day fund, reduce our debt, and prudently plan for any unforeseen future economic downturn. Notwithstanding the Governor's proposal however, we must go further to strategically restore cuts made in prior budgets and increase funding for essential services like education, services to our most vulnerable populations, and the courts. Also, we need to reform our foster care system to improve safety and outcomes. We must also make necessary improvements to our infrastructure to ensure safe working conditions for our state employees such as those who work at the Board of Equalization building in Sacramento. Thanks to our improving economy, we can set our sights on long-range fiscal planning for a prosperous and thriving California."
Sen. Andy Vidak, R-Hanford
Governor Brown, why don't you come to your senses?
In 2008, 52 percent of the electorate voted to pass Proposition 1A, which allowed the State of California to issue up to $9.95 billion in bonds to construct a high speed train. In addition to allowing the state to issue bonds, Proposition 1A set a number of conditions that the high-speed train had to achieve.
Since the passage of Proposition 1A, the voters have learned that the HSR project will not be able to meet any of the promises that were laid out before the voters. Below are five areas where the train is failing to live up to its promises to voters:
Cost. The supporters of Proposition 1A told the voters that the cost to complete the entire project would be around $33 billion. Additionally, supporters argued that the state investment in this would be no more than $11 billion, with the belief that the federal government would provide an additional $11 billion and private capital would provide the final $11 billion. Since then the authority itself has projected that the final cost of the project could exceed $100 billion, there is still no sign of private investors and the chair of the Senate Transportation and Housing committee recently said that "Californians might be spending $300 or $350 billion" on the system.
Time. Voters were promised that they would be able to get from Los Angeles to San Francisco in two hours and 40 minutes. Current estimates now show that the train will not be able to meet this time requirement; instead it is believed that the train ride from Los Angeles to San Francisco will take over three hours.
Speed. In the voter pamphlet the voters were promised that the train would be able to achieve and sustain speeds of 220 mph throughout the entire trip. We now know that this is false, and the authority itself has said that there will be numerous stretches of the trip where the train will have to maintain lower speeds for safety and to curb excessive noise in urban neighborhoods.
Existing Corridors. Voters were told that to reduce impacts to the environment and mitigate the use of eminent domain the train route would follow existing transportation and utility corridors. From the route maps that have been released by the authority we know this to be untrue. The HSR route will plow through family farms and tear apart businesses that have been in operation for generations.
Dedicated System. HSR was supposed to have a dedicated track system so it could meet the speed and time requirements as presented to voters. Now we learn that in certain parts of the state the HSR Authority plans a "blended" track system, which will mean reduced speeds and increased travel times. Again, not what was promised.
For these reasons and more, the voters of California have started to question HSR. A recent LA Times poll found that 52 percent of Californians are now opposed to the project and 70 percent want a re-vote on HSR.
Hijacking cap-and-trade dollars to fund High-Speed Rail is clearly a desperate measure. As columnist Dan Walters put it, "the diversion is more likely to be dumping more money into a bottomless rathole."
California Community Colleges Chancellor Brice W. Harris
After years of budget cuts forced us to turn away hundreds of thousands of students, Gov. Brown's proposal is welcome news for California and for the economy. With an 11.4 percent increase in funding we are now on the way to adding back the much needed classes that will restore our system's ability to provide educational opportunities for those seeking to improve their lives at community colleges. The proposed budget also is in lockstep with our Board of Governors' Student Success Initiative, which aims to increase the number of students who complete certificates, degrees or transfer to four-year institutions. It provides resources to strengthen support services for students and help close achievement gaps. We embrace the governor's call to continue to improve and streamline transfer opportunities across all segments of higher education. Simply put, this proposed budget does more to help community college students than any in recent memory.
Assemblyman Dan Logue, R-Marysville
I am pleased that Governor Brown is carefully guarding the state's surplus. While California is turning the corner on the state's long-term problems, now is not the time to spend any additional unexpected revenue. Hard-working Californians paid the price for years of irresponsible budget choices by Sacramento liberals with years of cuts to education, public safety and social services. Our state is finally making progress on the budget outlook, and we must exercise caution and fiscal restraint to ensure we avoid the mistakes of the past.
Assemblywoman Nora Campos, D-San Jose
Over the last three years, Democrats and Californians have made some hard choices to put the state on solid footing. Governor Brown's proposal today appears to be in step with the responsible budget blueprint that Democrats have laid out.
I will take a close look at the governor's proposal, and will look in particular for ways we can improve the job climate in the state. We must keep our eye on the ball and continue to find ways to create jobs, because, even though the economy is improving, we still have more than 1 million people looking for work.
Sen. Mimi Walters, R-Irvine
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There is a great deal to like in the governor's stated goals with this budget; while I may question the wisdom of some of the governor's spending priorities, I was pleased with his stated commitment to fiscal restraint. My hope is that his words are not fiction, and that this budget is not a political tool used in the way the governor has in past budgets.
"Specifically, I support the governor's commitment to paying down the state's "Wall of Debt," and his recognition of the projected $354.5 billion debt and pension liabilities problem that remains unresolved. Failure to address these looming fiscal issues will continue to jeopardize California's long-term stability.
"I also appreciate the governor's stated goal of not spending temporary revenues on on-going spending programs. Such budgeting practices contributed substantially to the previous fiscal downturns, which were greatly exacerbated by the recession. Governor Brown correctly warns of the volatile nature of California's reliance on capital gains tax revenues and the stock market.
"Our challenge will be to ensure that the compulsive spending habits of the Legislature do not continue to indebt Californians in the future"
Sen. Anthony Cannella, R-Ceres
I am pleased that Governor Brown understands the need to continue to pay down our debt and take a measured approach to spending after years of budget deficits. As we look at budget surpluses, we need to build a robust rainy day fund and make sure that we do not use it on new programs that require ongoing spending. It is important to recognize that state revenue is volatile. We would be doing the state a disservice by spending the surplus after years of deficits.
"I appreciate the Governor's continued commitment to strengthening our education system. The Local Control Funding Formula helps even the playing field for students. Education is key to the future of our state.
Assemblywoman Susan Bonilla, D-Concord
"The Governor's budget proposal devotes special attention to helping schools transition to the new Smarter Balanced Assessments by designating $46.5 million to implement AB 484, which I authored, to establish a more advanced student assessment system aligned to the Common Core State Standards in English-language arts and mathematics beginning in the 2014-15 school year. These new, computer-based assessments reflect the real world knowledge needed for young people to succeed in college and careers.
Additionally, the Governor is further reinvesting in education by closing the gap on remaining deferrals to K-12 schools, boosting Prop 98 funding by $10 billion, and continuing to implement the Local Control Funding Formula to provide school districts with a higher level of base funding while also providing additional resources for low income students, English language learners and foster youth.
Finally, one thing we've learned over the past several years is how volatile our state economy can be with alternating boom and bust cycles. That's why it's critically important to continue to save in years when revenues are high in order to ride out the lean years and avoid cuts to education and social services in the future."
Assemblyman Tim Donnelly, R-Twin Peaks
"After picking the pockets and balancing California's budget on the backs of hardworking taxpayers through the largest Tax increase in State history, Governor Brown this morning declared all of California's problems magically solved. It must be nice to view the State's problems through such rose-colored lenses. The reality is, a magnitude of problems still face California.
"The Governor's surplus is a myth. It will be short-lived, as businesses flee the state to escape Prop. 30. This so-called surplus is largely due to a one-time Tax increase bailout - this is no long-term solution.
"There are several flaws with today's Budget proposal:
- The Governor's budget today fails to address the $218 Billion in unfunded Pension liabilities which the State still faces. This problem is not going away.
- While the Legislative Analysts Office (LAO) proposes a $5 Billion in rainy day funds, the Governor is setting aside only $1 Billion.
- Despite his call for fiscal restraint, the Governor shows little restraint in spending, suggesting billions of dollars in increased spending (a 9% increase in spending). Plain and simple, these funds were confiscated from the pockets of hardworking Californians in order to redistribute to his cronies in Sacramento.
- The Governor makes jest of the drought situation in our Central Valley, suggesting that government can't make it rain. But the fact is, the government CAN and did create a drought. This Governor now ignores real solutions, which include an increase in water storage and a statewide water management plan that respects every region.
- The Governor proposes making it easier for local jurisdictions to raise taxes, by lowering the approval threshold for tax increases, to 55%. This would be disastrous for homeowners and taxpayers.
- The Governor continues to throw money at the High-Speed Rail boondoggle
- Keeping the pay-to-play system alive, Governor Brown has provided pay increases to the teachers unions, who are among the same groups that just flooded his Campaign account with more than $1 Million just two weeks ago. Despite these increases, and an increase in education spending by $10 Billion, little to no money of that will ever be seen in the classroom. California's tradition of failing our children continues.
- Governor Brown is proposing an additional release of inmates further endangering the public safety in California, although this time it includes aging and infirm inmates. One has to ask why the Governor didn't think to propose their release first, rather than releasing 10,000 other criminals onto our streets - including a violent criminal who raped and murdered a woman after his release.
"The facts remain:
- Nearly 2 Million Californians are still unemployed.
- 1 in 4 Californians now living in Poverty on Jerry Brown's watch.
- And 1 Million Californians are losing their healthcare due to ObamaCare.
"The real bottomline: the fiscal outlook for Millions of Californians isn't as rosy as Jerry Brown would have you believe."
Assemblyman Don Wagner, D-Irvine
"There are several things to like about the governor's budget proposal. Most importantly, the budget properly recognizes that the surplus will be short-lived. It is artificial since it comes from - to use the governor's words - a 'windfall' in capital gains receipts and 'temporary' tax increases. It is wise for the governor to urge 'fiscal restraint' given the nature of this surplus. Unfortunately, there has been very little done by Sacramento over the last few years to fix our underlying structural problems and to set us on a more sustainable path towards creating a lasting surplus.
"On education, I appreciate the governor's attempt to make good on the promise that new tax revenue will be used to protect our schools. That was a major goal of Republican legislative efforts last year. Whether enough has been dedicated to education and whether the governor's new funding formula is implemented properly are details that remain to be worked out, but I think a good start has been made.
"I am also very glad to see over $100 million in additional spending for our courts. The judiciary has been strangled over the last few years, which causes very real pain to very real people as they look to the courts for justice. This relief for the courts is a start towards rebuilding our judicial system.
"Finally, I applaud the governor's plan to build up our Rainy Day fund and to reduce long term debt, apparently by about $11 billion in this fiscal year. However, while that seems like a lot in debt repayment, the budget makes clear that this $11 billion is only a small percentage of our total debt. So I would like to see a larger percentage of the budget go to both the Rainy Day fund and to pay down the debts run up in prior years, rather than to adopt a rash of new and unsustainable spending. That mistake has been made in the past, got us into the deficit situation we found ourselves in over the last several years, and should be avoided.
"The way to avoid that mistake, of course, is to recognize that it happened, which the governor's budget does, and then to enact responsible legislation that will create jobs to grow our economy. My Republican colleagues and I will work hard to get that legislation passed, and will gladly join with the governor and our Democratic colleagues to accomplish that goal. We need to make California competitive again."
Kathy Kneer, President and CEO of Planned Parenthood Affiliates of California
"The State Budget proposal presents some good news for Medi-Cal providers. We truly appreciate that the Governor is proposing to stop the recoupment of the 10 percent cut in reimbursement rates paid to Medi-Cal providers. This is critical to maintaining provider participation in the Medi-Cal program as it expands to serve the newly eligible individuals under the Affordable Care Act.
"We are hopeful that through the budget process we can rescind the 10 percent Medi-Cal reimbursement rate cut currently in effect. California's reimbursement rates are among the lowest in the nation and that was before the 10 percent cut that this budget would keep in place.
"Planned Parenthood's costs for providing preventive and reproductive health services - like life-saving breast and cervical cancer screenings, STD testing/treatment and contraceptive services - aren't going down and continuing the 10 percent Medi-Cal cut puts providers in a very difficult situation. With the advent of the Affordable Care Act, California should focus on efforts to provide more services, not less, and we will work within the budget process to fully restore Medi-Cal funding.
"Another positive sign is that the Budget proposes to expand comprehensive coverage and pay out?of?pocket costs for pregnancy?only Medi?Cal beneficiaries electing to receive comprehensive coverage through Covered California beginning in January. We look forward to working with the administration and Legislature to remove barriers for women to receive comprehensive and essential pre-natal care."
Sen. Ted Gaines, R-Roseville
"I support Governor Brown's attempts to reduce our wall of debt and establish some semblance of a rainy day fund. However, the budget also proposes increased spending by more than $8 billion with new funding for projects like high-speed rail.
At a time when we should be seriously buckling down and tightening our belts, the Governor has taken the rosier budget outlook as license to charge ahead with a spending spree. Creating new programs based on funding that is not guaranteed in the future is a recipe for disaster.
It is critical that we rein in spending and remain in the 'black' so that California never falls back into the fiscal pit we've dug ourselves into in the past. I agree that 'wisdom and prudence should be the order of the day.' Now, it's time to live by it."
Assemblyman Henry Perea, D-Fresno
"I support Governor Brown's attempts to reduce our wall of debt and establish some semblance of a rainy day fund. However, the budget also proposes increased spending by more than $8 billion with new funding for projects like high-speed rail.
At a time when we should be seriously buckling down and tightening our belts, the Governor has taken the rosier budget outlook as license to charge ahead with a spending spree. Creating new programs based on funding that is not guaranteed in the future is a recipe for disaster.
It is critical that we rein in spending and remain in the 'black' so that California never falls back into the fiscal pit we've dug ourselves into in the past. I agree that 'wisdom and prudence should be the order of the day.' Now, it's time to live by it."
George Runner, member Board of Equalization
"A budget that demonstrates fiscal restraint is essential for California to stay on track. The Governor's high speed rail funding plan shows at least some of his funding priorities are off track.
"Increased revenues are primarily the result of temporary tax increases that will soon expire. California cannot solve its long-term budget problems by relying on temporary solutions that undermine job creation and economic growth.
"A comprehensive plan must prepare for the ending of the temporary tax increases Californians imposed on themselves to get out of the fiscal hole of overspending and recession.
"It is vital to set aside reserves for future shortfalls, or the Legislature may push to make temporary tax increases permanent. A strong rainy day fund is an important part of ensuring our state's fiscal stability.
"California's budget challenges will only be truly solved when a strong and healthy private sector is able to create jobs and opportunity for more Californians."
Jim Mayer, CEO & President of California Forward:
Governor Brown's budget proposal strengthens critical reforms to how California is governed. The budget would improve fiscal management, bolster the delivery of community services, invest in critical infrastructure and encourage the creation of well-paying jobs.
The specifics matter and over the next six months policy-makers will have the chance to incorporate the best thinking that has been developed through California Forward's Partnership for Community Excellence, the Economic Summit and other civic collaboratives. While increasing revenues creates more opportunities for spending, realizing the benefits of current reforms will require the Governor's sense of urgency, the Legislature's increasing interest in the long-term impacts, and a commitment to excellence in implementation.
Sen. Mark Leno, D-San Francisco
"Fortunately, California's fiscal outlook continues to be optimistic, as is reflected in the budget proposal released today by Governor Brown. The Governor makes a strong case for using the state's surplus funds to address the wall of debt and build a reserve that will help safeguard us against future economic downturns. As we pursue these important responsibilities, we must also develop a balanced, long-term plan for recovery. For too many years we have made devastating cuts to vital services that support students, working families and elderly and disabled Californians. Significant reinvestment in education and health and human services is needed to further stimulate our economy and restore some amount of economic justice to the many people who have gone without critical assistance in recent years.
"As Chair of the Senate Budget Committee, I am eager to fully analyze the Governor's budget plan and work together with my colleagues in both the Senate and Assembly, and the people of California, to deliver a final, on-time budget that helps balance the top funding priorities of our state."
California Manufacturers & Technology Association President Jack Stewart:
"Gov. Jerry Brown proposed a prudent and balanced budget today that will help ensure that future budgets can also be balanced while the economy continues to recover to full strength.
He noted that California is a relatively high tax state and we appreciate that his budget does not include new tax proposals. The combination of spending restraint and no new taxes is a positive sign for manufacturers and others looking to invest and locate in California.
We commend the Governor for presenting a responsible budget that works toward an improved economy while focusing on our schools, health care and public safety."
Bill Wagner, president of the American Council of Engineering Companies-California.
ACEC California applauds Governor Brown for proposing a state budget which improves state funding for transportation, educational facilities, clean energy, water supply, water quality and environmental protection. Business organizations such as ACEC California have been talking about infrastructure funding problems for years. It is time for solutions, and we look forward to working with Governor Brown and the Legislature to meet our state's needs.
California Federation of Teachers
"We are heartened to see that the Governor's proposed budget acknowledges the crisis in funding in our educational system and the state's social services, but it will not support the necessary and vital changes we need immediately to protect students in our schools and colleges now against becoming a gap generation that suffers from our cutbacks," said Joshua Pechthalt, President of the California Federation of Teachers. "Today is a rainy day. Until 2012, when we passed Prop 30, we have spent the last two decades not only cutting education funding to the bone but borrowing against our future. It's not good enough to just pay our debt, we need to pay it back with interest - making sure today's children and college students have the resources they need in our schools and in our communities to be successful tomorrow."
"The importance of Prop 30 is shown in a budget that increases, rightly, funding in all education, health and human services, and other needed areas that were decimated under the previous administration," added CFT Secretary-Treasurer Jeff Freitas. "However, in K-12 education, the Governor has focused only on paying off deferrals and re-distributing existing funds instead of addressing the central barrier to student success: poverty in and around our schools. We need to connect health and human services with the educational system. We need to provide critical resources including health professionals, mental health services and after school opportunities like open libraries if we truly want to protect California's future. With economic disparity more profound than at any point since the Great Depression, this is a time to be bold, not cautious."
"Addressing these issues should be Gov. Brown's bequest to California, the focus of his next and last term," said Pechthalt. "Gov. Brown is in the home stretch of his career, and these next few years will be remembered. As the Governor pushes hard on legacy-builders like the High Speed Rail project and the Delta tunnels, I hope he remembers that education is lasting infrastructure, too. In fact, it is the most vital form of infrastructure there is. Without an educated population, our economy and democracy will never truly be sound, no matter how much we save."
Kimberly Horiuchi, criminal justice and drug policy attorney for the ACLU of California
"The governor's budget includes some positive elements. The presumption of split sentencing will help ensure people are able to successfully transition back into the community without committing additional crimes, and requiring counties seeking state money for jail construction to prioritize reducing pre-trial populations by using risk assessment tools will increase public safety and ease jail overcrowding. Ultimately, however, the long term solution for California's prison crisis is sentencing reform."