2016-16 GOV’S BUDGET SUMMARY

The state Constitution requires the Governors to submit a budget proposal for the next fiscal each year by January 10, but this year the budget was released three days early.

So, the annual budget battle begins.  However, this year the state is planning on a second surplus year in a row – which may make the battles even more intense, as members of the majority party fight to lock-in  a share of that new revenue for new and existing programs while the Governor tries to tuck some money away to stave-off deficits.

Over the next few months this budget will be dissected, disconnected, taken-apart, reconfigured, lambasted, and generally go through the standard process.  Below is a summary.

The proposed budget includes:

 

–        Total spending (including bond and special funds): $170.7 billion

–        General fund spending: $122.6 billion

–        Personal Income Tax continues as the leader in state revenues at $83.8 billion. Sales tax is second at $25.9 billion.

–        Proposition 98 (K-14 education spending): $71.8 billion (plus $257 million from prior year “settle up” from underfunding of the guarantee.

–        “Rainy Day” fund for the next recession: $8 billion

At the press conference when asked about extending Proposition 30’s “temporary” taxes, the Governor essentially had no comment.  Many majority party legislators and advocates for school and health and human services groups would like to see an extension of one component of Prop. 30–the tax on those making over $250,000 a year, while letting the sales tax premium subside. There are currently initiatives on the street that will qualify that would do just that.

Click here to get all the information on the proposed 2015-16 Budget.

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