The deficit is a product of revenue shortfalls and increases as a result of state tax revenue shortfalls, lawsuits that have stopped major social services cuts from going forward (failed budget solutions), and some program spending due to increased caseloads. This year some $2.9 billion in new cuts to the general fund have been proposed for health and human services programs. Over $500 million in cuts have been sustained by the developmental services delivery system in the past few years.
From the CAR summary: "The current threat to vital services is real and could result in complete loss of programs and benefits. The administration has characterized the cuts as ‘terrible’ and appears relentless in its attempts to accomplish them regardless of the human or economic cost."
The Governor has support for the proposals from Republicans, while Democratic State Senator Darrell Steinberg seeks, among other ideas, to rescind some corporate tax breaks to pay for human services. Various proposals to close some of the gap in revenues continue to be discussed but
legislators appear cautious about altering tax rates and structures.
You can read more about proposals in the state budget and potential impacts in the full CAR memorandum. Download a copy by clicking here (Word document) - and keep a close watch on Sacramento as budget negotiations progress. We will be.
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