The Governor has released his revised $115 billion 2015-16 state budget – what is known in the Capitol parlance as the “May Revise.”
“I don’t want to get caught in the jaws of the persistent fiscal instability of the state government of California,” the Governor said of the budget that many are praising for its fiscal restraint.
A growing economy has fueled more funds available to the state than was expected in when the original budget was released in January. $6.7 Billion to be exact. Most of that unexpected revenue will have to be spent on priorities enshrined by the voters into the state constitution – about $5.5 billion will go to K-12 schools and community colleges; $633 million to the “Rainy Day Reserve;” and about the same amount to pay down existing debt.
Overall, this budget will use $2 billion for budget related debt and puts away another $3.5 billion in a rainy day reserve. Additionally, the budget direct more funding to deal with drought related issues (see below).
Rex Hime, President and CEO of the California Business Properties Association remarked state, “The commercial real estate industry applauds the Governor for proposing a responsible budget that resists the calls to direct these funds to ongoing programs.”
However, nothing creates conflict in the Capitol like some extra capital, as several Democrat legislators called for more funds to be spent on a variety of social programs.
Senate Republican Leader Bob Huff (R-Diamond Bar) released a statement noting that, “When faced with higher revenues, holding the line on spending is a good thing.”
Click here to see Senator Huff’s take on the budget.
As the weather in Sacramento heats up, so will the debates over spending priorities.
Click here to read full budget summary of the “May Revision – 2015-16.”
