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Legislature Votes on Budget

This afternoon the legislature voted on their budget and sent it to Governor Brown for his signature. The governor has 12 days to sign the budgetand has line item veto, should he wish to utilize it.

While there is a $16 billion reserve account, there are now 3 reserve accounts – rainy day which can hold 10% of GF revenues, an account for  “uncommitted reserves which hold $2 billion and a new ‘safety net reserve for social services, this account holds $200 million.

However, there is no expansion of health care or tax breaks offered to undocumented residents. SB 974 – Medi-cal access for those 65 and older and AB 2965 which provides access to Medi-cal for adults and those under age 26, both are still in committees, awaiting a hearing. No expansion of EITC for undocs.

There is an increase in K-14 education – $78 billion, $11,639 per student, $100 million one time and $20 million ongoing for a new online community college.

More funding was provided for CSU, a total of one time and ongoing of $364 million and one time increased funding for UC – $274 million.

Homelessness issues will see an increase of $500 million in grants to cities to address this issue.On the November ballot is an initiative to approve bonds for affordable housing.

They are also addressing “deep poverty” – below 50% of FPLby increasing the welfare grants, the total increase is $360 million over 3 years, if budgeted in the out years.

Prop 56 funds (tobacco tax) have been set aside and will be considered at a later time. some of these funds are to supplement the reimbursement for Medi-cal provers.

Addressing the increases in STDs – $5 million for HIV and $2 million to prevent spread of STDs; $5 million on time to address Valley Fever outreach and research at Kern medical. $10 million to implement a 3 year All Children Thrive – a pilot program that addresses childhood trauma.

There have been discussions on replacing the current annex, which is attached to the Capitol, $1.2 billion is being set aside to replace it. Funds for high speed rail caused some dissension but the full budget was passed. As details are made available, more information will be shared.

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