The deficit has increased by $6.5 billion since the January budget was released. Broken down into components, the state has received $4.3 billion less revenue than anticipated. Add to that $2.4 billion in increased school funding, $1.7 billion in increased expenditures primarily related to federal disallowance of past cuts, and a loss of $1.9 billion expenditure savings. When this is added to the January, 2012, $9.2 billion deficit, there is now a budget gap of $15.7 billion.
Proposed cuts in the new budget add up to a reduction of over $16 billion. This figure presumes passage of the governor’s tax proposals.
New budget cuts include a 7 percent cut for In Home Support Services recipients and reduced payments to hospitals and nursing homes serving Medi-Cal patients.
State workers will have their hours reduced by 5 percent.
The Department of Food and Agriculture will lose $2.5 billion.
Also cut are approximately 29,000 subsidized child care slots as well as reduced funding for CalWorks. County child support programs will be reduced by $14.7 million, or about 2.6 percent of their overall budget.
The overall impact to the county is estimated to be $100,000 less revenue.
New money will come in a $20 million statewide grant program for city police departments and $500 million for jail construction.