CDCAN REPORT #009-2011: Governor Brown to release budget plan Monday at 11:00 AM in Press Conference

SACRAMENTO, CALIF  (CDCAN) [Updated 01/07/2011  04:00 PM  (Pacific Time)] - With California facing a budget shortfall of over $25 billion and staggering on-going deficits of over $20 billion projected through 2016, Governor Jerry Brown will unveil his proposed 2011-2012 State Budget plan Monday morning, January 10th, at an 11:00 AM press conference in the State Capitol that will contain proposals for massive spending cuts and likely a proposal for voter approval (in a June special election) the continuation of several of over $8 billion in temporary tax hikes scheduled to expire this year.

The Governor, along with Department of Finance Director Ana Matosantos, will present his budget plan in the Governor’s press room (Room 1190) in the State Capitol, though only credentialed media will be allowed in.  The general public can view the press conference live on CalChannel (check your local cable listings) or live webcast on the CalChannel website at www.calchannel.com.

Legislators and advocates at the State Capitol and across the State are bracing for wide-spread major permanent spending cuts to major programs, including health and human services.  Deep cuts – including mid-year cuts - are expected to several critical health and human services programs including regional center community-based services and supports, In-Home Supportive Services, CalWORKS – the State’s “welfare to work” program, Medi-Cal, and mental health.

CDCAN Note: CDCAN will issue a full report on the Governor’s budget proposal on Monday.  In addition, CDCAN has scheduled toll-free conference calls on the budget, and also on sharing updates, information and next steps, including problem solving and addressing significant trends and issues dealing with developmental services (regional centers and developmental centers) on January 14, 21 and 28  (Fridays) at 1:30 PM to 2:30 PM – and after that, every two weeks. Other separate conference calls (different from CDCAN Townhall Telemeetings) will be scheduled on an on-going basis covering other areas, including Medi-Cal, IHSS, etc   See separate CDCAN Report for details.

Governor Reduces Staff Spending by 25%

Though details on most of the Governor’s proposed budget plan have not yet been announced, the Governor today did provide details on a 25% cut or $4.5 million in spending in the Office of the Governor.

Among the cuts include elimination of some offices, including Secretary of Education, for a savings of about $1.9 million in state general funds, the Office of the First Lady, and the closure of the Governor’s Fresno, Riverside and San Diego field offices.  The Secretary of Education has served as an advisory position to the governor on education issues, having no authority or responsibility over the Department of Education – which is headed by the Superintendent of Public Instruction, elected by voters or the State Board of Education.

The Governor announced on January 5th the appointment of his wife, California First Lady Anne Gust Brown to the unpaid official position of Special Counsel to the Governor.  That appointment signals she will not be functioning in the traditional public role as First Lady.

To achieve the 25% savings in his own office, the Governor is making cuts that include:

• Cutting the Governor's Washington, D.C. office staff.
• Cutting the Governor's press and communications staff.
• Eliminating the position of Cabinet Secretary and all deputy cabinet secretaries.
• Elimination of the Secretary of Education within the Governor’s office
• Eliminating the Office of the First Lady
• Closing the Governor’s field offices in San Diego, Fresno, and Riverside.
• Eliminating the Office of the American Reinvestment and the Recovery Act Inspector General six months ahead of schedule, as previously announced.

The 2010-2011 State Budget Act passed and signed into law in October, included a total of $18 million for the Governor’s Office. After the 25% reduction, the total Governor’s Office budget in 2011 will be $13.4 million, according to the Governor’s office. 

Governor Returns Most of Funding for Transition

Governor Brown also announced today that he is returning 84% of the Governor’s transition fund, making sharp cutbacks in the Governor’s Office, and eliminating the Office of the Secretary of Education, for a total savings of $7.05 million.

“California is facing a huge deficit and it is necessary to find savings throughout all of government. We all have to make cuts and I’m starting with my own office,” said Governor Brown.

His administration is returning to the state treasury 84%—$650,000—of the $770,000 allocated in the 2010 budget for his transition. His administration spent $120,000 on the transition.