Significant details of the revised 2012-2013 budget from the state’s website:
Increases Funding for K-12 Education
Under the Governor’s proposal, funding for K-12 education would receive an increase of 16 percent, subject to voter approval. State funding for K-12 schools would increase from $29.3 billion in last year’s budget to $34.0 billion by the end of 2013.
Keeps Higher Education Affordable for Low-Income Students
The revised budget proposes that the state award Cal Grants using the same methodology that determines eligibility for Federal Pell Grant awards. This would ensure that the neediest applicants – who constitute some 63 percent of Cal Grant recipients – continue to receive the maximum award. Students with higher family incomes will receive reduced assistance.
Protects Public Safety
The revised budget continues to fund local governments that are implementing public safety realignment. It proposes a permanent funding structure so that local governments will have a reliable funding source into the future.
Cuts State Employee Compensation Costs
The revised budget includes a 5 percent cut to state employee compensation costs. This will be achieved through a reduced workweek or a commensurate reduction in work hours and pay.
Provides Funding for Existing Homeowner and Consumer Assistance Programs
Existing assistance programs for homeowners and consumers affected by the mortgage crisis will be funded with proceeds from the National Mortgage Settlement, resulting in $292 million in General Fund savings.
Funding court budgets from alternative sources
This year’s budget restructures trial court funding, reducing General Fund support by $300 million on a one-time basis and requiring each trial court to use their available reserve. It delays court construction for a savings of $240 million and increases retirement contributions for state court employees. Altogether, these will result in $125 million in ongoing savings.
Reduces Corrections Spending
In April 2012, the administration released a comprehensive plan to save billions of dollars, end federal oversight, and improve the prison system. As a result of this plan, the California Department of Corrections and Rehabilitation expects to save $1 billion in 2012-13 and $1.5 billion in 2015-16 while satisfying the U.S. Supreme Court’s order to reduce the prison population.
The Governor’s news conference will be streamed live this morning at 10:00 a.m. at http://www.calchannel.com. The budget, in full, will be posted online shortly after the news conference begins at: http://www.dof.ca.gov.