Governor Brown’s State Budget Revise Highlights

On May 14th, Governor Jerry Brown released his revised state budget. The budget included a $6.7 billion increase in General Fund revenues compared to the proposed January budget. There was emphasis on paying off liabilities and putting money into the Rainy Day Fund. Below are some necessary and noticeable adjustments in the budget:

Higher Education – Support to stop tuition increases
The May Revision commits $38 million in ongoing funding for the California State University (CSU) system, for a total of $158 million in new funding. As part of an agreement with the University of California (UC), the state will provide temporary funding to assistance in paying down UC’s unfunded pension liability.ca budget

Health Care
In response to President Obama’s Executive Order on immigration, this revision includes a total of $200 million to provide full-scope Medi-Cal coverage to immigrants who gain Permanent Residence Under Color of Law (PRUCOL) and those who would gain DACA and DAPA status under the President’s Executive Order.

Immigration Application Assistance
There is $5 million available to the Department of Social Services for grants to non‑profit organizations to provide application assistance to undocumented immigrants eligible for deferred action under the President’s executive actions.

Earned Income Tax Credit for the Poor
The budget includes a refundable tax credit for wages for households with incomes less than $6,580 if there are no dependents or $13,870 with three dependents or more. The proposed credit would match 85 percent of the federal credit, providing an average estimated household benefit of $460 annually for 825,000 families.