California Budget Shortfall Now Estimated at Over $17 Billion: Schwarzenegger to Release Budget Changes 1 P.M.

HEALTH AND HUMAN SERVICES

• New spending cuts to health and human services (no details available)

• Continues to push approval of nearly all the spending cuts to health and human services proposed in January (that the Legislature has not yet taken action on) that include major cuts to Medi-Cal, In-Home Supportive Services, programs under Department of Aging, and the 10% reduction impacting nearly every department under the California Health and Human Services Agency including Department of Rehabilitation, Social Services.

EDUCATION

• Governor will rescind some of his proposed cuts to education, and propose that the State provide the minimum funding as guaranteed by the State Constitution. In January the Governor proposed over $4 billion cuts in education, including $480 million reduction in spending for special education. Most of those cuts will be restored, though it is not clear yet if that includes rescinding the proposed cut to special education.

OTHER PROPOSALS

• Governor will rescind his proposals that called for closure of 48 state parks by proposing increase in fees

• Governor will rescind earlier proposal that called for the early release of thousands of prisoners in the State's correctional facilities.

• Budget reserve of over $2 billion

State Controller Says April Saw Higher Than Expected Income Tax Revenues

Meanwhile State Controller John Chiang reports that California collected $1.4 billion more in personal income taxes in April than expected. While good news, Controller Chiang warned that "...while this is very welcome news, these numbers should not lure us into a false sense of security...Sagging retail sales, a weakening real estate market, growing unemployment and rising energy prices all point to an economy facing significant challenges."

Chiang however indicated that the higher than expected personal income tax revenues in April should help the State's cash crisis, saying that “...the State’s cash position should provide enough of a cushion to get us through the remainder of the current fiscal year." but warned against delaying passage of a State budget to avoid a cash crisis this summer, warning that "California needs a timely budget based on sound revenue projections and containing real deficit-reducing solutions.”

The California Disability Community Action Network, is a non-partisan link to thousands of Californians with developmental and other disabilities, people with traumatic brain injuries, the Blind, the Deaf, their families, community organizations and providers, direct care, homecare and other workers, and other advocates to provide information on state (and eventually federal), local public policy issues.