CDCAN REPORT #008-2012 - Info Hearing on General Overview of Governor's Proposed Budget Set for Jan 19th by Senate Budget Committee and Jan 31st by Assembly Budget Committee - No Action Will Be Taken

SENATE BUDGET COMMITTEE TO HEAR OVERVIEW OF GOVERNOR'S PROPOSED BUDGET ON JANUARY 19 - ASSEMBLY BUDGET COMMITTEE HEARING JANUARY 31

No Action Will Be Taken At Either Hearing on Governor's Proposals Calling for over $4 Billion In Spending Cuts - No Public Testimony Will Be Taken Either Informational Hearing - Budget Subcommittee Hearings Likely To Begin in Late February Through June To Hear Details on Governor's Specific Proposals and Take Public Testimony

SACRAMENTO, CA (CDCAN) [Last updated 01/12/2012 09:30 PM] - A general overview of Governor Brown's proposed 2012-2013 State Budget that calls for over $4 billion in new spending cuts, will be heard in two informational hearings by the California Legislature scheduled later this month, that signals the start of what will be a long legislative budget process that the Governor and legislative leaders hope will result in a budget by July 1st.  The full Senate Budget and Fiscal Review Committee will hold the first informational hearing on the budget, set for January 19th, Thursday morning, immediately following adjournment of the State Senate floor session and a brief Senate Appropriations Committee hearing, at the State Capitol in Room 4203.  That hearing will be followed on January 31st, Tuesday morning at 10:00 by the full Assembly Budget Committee is at the State Capitol in Room 4202.  Both informational hearings will be televised and webstreamed live via CalChannel (go to www.calchannel.com for live video stream or check your local cable listing for television schedule).

Officials from the Governor's Department of Finance and from the Legislative Analyst Office - the non-partisan agency that analyzes and review budget issues for the Legislature - will be on hand for both hearings to provide general information about the Governor's proposed budget.  No action will be taken - and likely no time allocated for any public testimony. While no action will be taken at these two hearings, the information provided could be important in clarifying some of the Governor's budget assumptions and numbers that in turn could impact specific proposals, including specific proposed budget reductions.

The scheduled informational hearing dates later this month of the full budget committees is a return to the more normal deliberative and slower budget process - unlike the past several years where the Legislature took up budget issues on a fast track including passing an early State budget in February 2009, and several key budget trailer bills - and an attempt to pass an early budget in March 2011.

Barring a surprise, both the State Senate and Assembly will likely begin holding budget subcommittee hearings - where specific proposals by the Governor are heard, with public testimony taken and some actions taken beginning sometime in late February through early June.

Governor Proposes Over $4 Billion In New Spending Cuts - and $7 Billion In New Temporary Taxes

As reported by CDCAN on January 5th, Governor Jerry Brown released his proposed 2012-2013 state budget plan January 5th that calls for over $4 billion in additional massive spending cuts and nearly $7 billion in new revenues from temporary tax increases on the state's wealthiest taxpayers and a one-half percent increase in the state's sales tax, to close what the Governor said is a projected $9.2 billion budget deficit. The Governor's plan however hinges on putting the issue of his proposed temporary tax increases on the November 2012 via petition, for voter approval.

Over $2 billion of the total $4 billion in new cuts will come from health and human services, with reductions there largely centered on four major programs - CalWORKS and child care, Medi-Cal, In-Home Supportive Services and developmental services. Major and dramatic changes proposed by the Governor will also impact other areas, including proposals to replace the Department of Mental Health with a new Department of State Hospital which was previously brought up last May; the proposed elimination of the 11 Caregiver Resource Centers, and a proposal calling for the elimination of the Managed Risk Medical Insurance Board.

The new proposed reductions appear to be addition to the $1 billion in spending cuts announced in mid-December by the Governor when he also announced that the 2011-2012 State Budget "trigger cuts" would be pulled because projected revenues fell below what was budgeted. However the Governor's budget summary totals do not appear to reflect those reductions, though the narrative and specific details from department estimates do.

CDCAN SUMMARY OF BUDGET HEARINGS

The following is complete list of budget related hearings scheduled to date.  There are no budget subcommittee hearings scheduled yet.

SENATE BUDGET AND FISCAL REVIEW COMMITTEE

JANUARY 19, 2012 - THURSDAY
WHAT: General Overview of Governor's Proposed 2012-2013 State Budget (by Governor's Department of Finance and Legislative Analyst Office)
TIME:  Meets immediately after adjournment of a brief Senate Appropriations Committee hearing, which meets when the Senate floor session, which convenes at 09:00 AM, adjourns.
WHERE: State Capitol - Room 4203
TELEVISED:  Yes - on CalChannel (also streamed live via www.calchannel.com )
PUBLIC TESTIMONY: No (testimony will be taken during budget subcommittee hearings)
CDCAN COMMENT:  Senate Budget Committee staff say this hearing should last about 2 hours.
PRIORITY:  HIGH

ASSEMBLY BUDGET COMMITTEE

JANUARY 31, 2012 - TUESDAY
WHAT: General Overview of Governor's Proposed 2012-2013 State Budget (by Governor's Department of Finance and Legislative Analyst Office)
TIME: 10:00 AM
WHERE: State Capitol - Room 4202
TELEVISED:  Yes - on CalChannel (also streamed live via www.calchannel.com)
PUBLIC TESTIMONY: Not likely (testimony will be taken during budget subcommittee hearings)
PRIORITY:  HIGH