California state budget (2011-2012)

Note: This article was last updated in 2012. Click here for more recent information on state budgets and finances.

## Contents

* 1 Passage of Budget
* 2 State Credit Rating
* 2.1 Cuts
* 3 Footnotes

California's lawmakers approved a FY2012 budget on June 28, 2011[1], that included $15 billion in spending cuts. Gov. Jerry Brown signed the budget into law on June 30, 2011.[2] Gov. Brown vetoed the first budget approved by the legislature on June 15, 2011.[3] Gov. Brown said on May 12, 2012 that the state faces an estimated $16 billion budget gap.[4]

Education Spending

For FY2012, California devoted 24.7% of its total spending to education, up from 25.6% in FY2009.[5]

Fiscal Year  | Total Spending[6] | Education Spending[7] | Percent Education Spending

|
|
|

2009 | $427.0 billion | $105.5 billion | 24.7%
2010 | $431.2 billion | $106.0 billion | 24.5%
2011 | $422.1 billion | $106.0 billion | 25.1%
2012 | $422.1 billion | $108.3 billion | 25.6%

Medicaid

In FY2012, the state spent approximately $15 billion for Medicaid, known as Medi-Cal. Medicaid spending increased 50 percent over 10 years.[8]

Transfers of Funds

The state transfers money from funds intended for specific expenses in order to keep the state's day to day operations running. Gov. Brown signed a bill on Feb. 3, 2012 that expands the ability to borrow from dedicated funds, which will make $865 million available to help keep the state in the black through early March 2012.[9]

### Passage of Budget[edit]

The legislature and the governor reduced the original $26.6 billion budget gap by $11.2 billion for FY2012, mostly through budget cuts.[10]

Federal Funds

California received $79.2 billion in federal federal funds over FY2012, which amounts to 38% of total state spending.[11]

### State Credit Rating[edit]

Following the passage of the state budget, Standard and Poor's boosted California's credit outlook to stable from negative, and then on Feb. 14, 2012, it raised the outlook on the state's credit to positive.[12][13]

#### Cuts[edit]

Some spending cuts in the budget include[14]:

* $1.7 billion from Medi-Cal
* $1.7 billion from redevelopment agencies
* $1.5 billion from CalWorks, the welfare to work program
* $1.4 billion to higher education

Funding to K-12 education was not cut under the budget.[15]

Expenditures

The expenditures in the proposed budget included:[14]

Category  | Amount  | % of Budget

|
|

K-12 Education | $36.2 | 43%
Health and Human Services | $21.2 | 25%
Higher Education | $9.8 | 12%
Corrections | $9.2 | 11%
Legislative, Judicial and Executive | $2.5 | 3%
Natural Resources | $2.1 | 2%
General Government | $1.9 | 2%
Business, Transportation and Housing | $0.69 | 0.8%
State and Consumer Services | $0.60 | 0.7%
Labor and Workforce Developments | $0.41 | 0.5%
Environmental Protection | $0.06 | 0.1%

Revenue

In addition to the tax increase proposal discussed above, the budget included revenues from a variety of sources:[14]

Source  | Amount  | % of Budget

|
|

Personal Income Tax | $49.7 | 56%
Sales Tax | $24.1 | 27%
Corporation Tax | $11 | 12%
Insurance Tax | $2 | 2%
Liquor Tax | $0.33 | 0.4%
Motor Vehicle Fees | $0.19 | 0.2%
Tobacco Tax | $0.09 | 0.1%
Other | $2.4 | 3%

## Footnotes[edit]

1. ↑ The Los Angeles Times "Democrats pass austerity budget for California" June 29, 2011
2. ↑ Reuters "California state budget signed on time" June 30, 2011
3. ↑ The Los Angeles Times "Gov. Jerry Brown vetoes 'unbalanced' state budget" June 17, 2011
4. ↑ MSNBC.com "Governor: Calif. facing huge cuts with $16 billion shortfall" May 12, 2012
5. ↑ State Budget Solutions "Throwing Money At Education Isn't Working" Sept. 12, 2012
6. ↑ USGovernmentSpending.com "California Government Spending Chart - Total Spending" Aug. 4, 2012
7. ↑ http://www.usgovernmentspending.com/spending_chart_1997_2017ALb_13s1li111mcn_20t USGovernmentSpending.com "California Government Spending Chart - Education Spending"Aug. 4, 2012
8. ↑ The San Francisco Chronicle "As Medi-Cal soars, higher education loses" Aug. 10, 2012
9. ↑ The Los Angeles Times "Gov. Jerry Brown signs measure to boost state's cash flow" Feb. 3, 2012
10. ↑ [http://online.wsj.com/article/SB10001424052748704547604576263262906760924.html?mod=googlenews_wsj The Wall Street Journal "Brown Seeks Vote on Taxes in Fall" April 15, 2011]
11. ↑ The Los Angeles Times "U.S. budget ax hangs over California" Aug. 4, 2011
12. ↑ Bloomberg "Brown Budget May Overstate California Revenue by $6.5 Billion, Study Says" Feb. 27, 2012
13. ↑ San Francisco Chronicle, California Budget Gets Approving Nod From Standard & Poor's, July 8, 2011
14. ↑ 14.0 14.1 14.2 Cite error: Invalid `<ref>` tag; no text was provided for refs named `plan`
15. ↑ Cite error: Invalid `<ref>` tag; no text was provided for refs named `dice`

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