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State Budget Update

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State Budget Update State Budget Update The State is facing a $25.4 billion budget deficit. Governor Jerry Brown has proposed a budget that includes a mix of cuts and tax extensions to address this deficit. In late February, the Senate and Assembly had each adopted a budget framework based on the Governor’s proposal. The Legislature is expected to have a final budget proposal to the Governor by March 10, 2011. The final proposal is expected to include language regarding proposed tax extension measures that may appear on a June 2011 special election ballot, as well as cuts to be taken if the tax extensions are approved by the voters. A final State Budget will not be signed until after the special election when the Governor and the Legislature understand the outcome of the special election. Without approval of the proposed tax extension measures a balanced budget is expected to rely exclusively on cuts to state programs. Outlined below are some major issues related to the budget: • The budget proposes delaying all General Obligation bond sales until fall 2011, which is estimated to provide a savings of $248 million. This delay is not expected to impact the State’s existing commitments • The Budget proposes an $11 million General Fund cut to the Department of Parks and Recreation in the year 2011-2012, and a $22 million cut in future years • The Budget proposes a major realignment of government functions shifting power from the state to local agencies to provide essential services and associated fiscal responsibility. This realignment would include a phasing out of Redevelopment Agencies beginning in 2011-2012 • The Budget proposes putting an initiative on the June 2011 Special Election ballot that would extend current tax rates for five years. Extension of the current tax rates will lessen the cuts necessary to achieve a balanced budget for fiscal year 2011-2012 Prepared by Conservation Strategy Group, LLC March 2, 2011 Bond Update Back ground • In December 2008 the Department of Finance issued a stop work order on bond funded resources project due to the State’s inability to sell general obligation bonds and need to preserve cash (also known as the bond freeze) • Prior to the freeze, bond-funded resources projects were allowed to move forward using loans from the Pooled Money Investment Account (PMIA), which would be repaid through subsequent bonds sales • Following the freeze, a new process for supporting bond-funded resources projects was developed. This process requires that bonds be sold before a project moves forward and that cash be available to the agency before a commitment is made Challenges • Long-term bond costs increase under the new bond sale process, because the State incurs debt-service costs earlier than under the former bond sale process using the Pooled Money Investment Account • After a successful bond sale, the Department of Finance is distributing cash to agencies based on priority and need; however, it is unclear what the priorities are • The new bond sale process has led to a great deal of uncertainty and confusion amongst stakeholders, state agencies, and funding partners Prepared by Conservation Strategy Group, LLC March 2, 2011 120676_2/07/11 CALIFORNIA STATE GOVERNMENT THE EXECUTIVE BRANCH • PEOPLE OF CALIFORNIA STATE BOARD OF STATE INSURANCE SECRETARY LIEUTENANT GOVERNOR STATE STATE EQUALIZATION ATTORNEY SUPERINTENDENT OF COMMISSIONER OF STATE GOVERNOR CONTROLLER TREASURER BETTY YEE GENERAL PUBLIC INSTRUCTION DAVE JONES DEBRA BOWEN Gavin NEWSOM JERRY JOHN CHIANG BILL LOCKYER District 1 KAMALA D. HARRIS TOM TORLAKSON 9-492-3500 653-7244 445-8994 BROWN 445-3028 653-2995 Chair 445-9555 319-0800 445-4081 (415) 557-3000 GEORGE RUNNER District 2 Member (909) 937-6106 CALIFORNIA DEPARTMENT OF DEPARTMENT OF MICHELLE STEEL District 3 JUSTICE EDUCATION 445-5713 KAMALA D. HARRIS TOM TORLAKSON 445-9555 319-0800 JEROME HORTON EXECUTIVE SECRETARY District 4 Jim Humes Nancy McFadden Vice Chair 445-4154 CALIFORNIA TRUSTEES OF UNIVERSITY OF BOARD OF CALIFORNIA ACCOUNTING LEGISLATIVE AFFAIRS SENIOR ADVISORS TO KRISTINE CAZADD POSTSECONDARY STUDENT AID STATE CALIFORNIA Sandy Sharrer 322-0242 THE GOVERNOR GOVERNORS, STATE BOARD Gareth Elliott 445-4341 Interim Executive Director EDUCATION COMMISSION UNIVERSITIES BOARD OF REGENTS Ken Alex 327-4975 COMMUNITY COLLEGES OF EDUCATION APPOINTMENTS OPERATIONS COMMISSION Diana Fuentes Michel Dr. Charles Reed Mark G. Yudof Josh Groban Jack Scott Debora Merle Mona Pasquil 445-6131 Sue Johnsrud 445-1682 Murray J. Haberman Executive Director Chancellor President Julie Henderson Chancellor Executive Officer CONSTITUENT AFFAIRS PERSONNEL Executive Director 9-526-8271 562-951-4700 510-987-9074 Cliff Rechtschaffen 445-8752 319-0692 Ned Ruthrauff 445-2841 Esther Jimenez 445-1697 445-1000 LONG BEACH OAKLAND EXTERNAL AFFAIRS PRESS SECRETARY SPECIAL COUNSEL Nick Velasquez 324-2472 Gil Duran 445-4571 Anne Gust Brown 324-7745 PROTOCOL FAIR POLITICAL CALIFORNIA PUBLIC JUDICIAL APPOINTMENTS STATE LANDS CALIFORNIA LOTTERY PUBLIC UTILITIES Charlotte Shultz 324-6331 PRACTICES GAMBLING CONTROL EMPLOYMENT 324-7039 COMMISSION COMMISSION COMMISSION COMMISSION COMMISSION RELATIONS BOARD LEGAL AFFAIRS SCHEDULING Paul D. Thayer Vacant Michael R. Peevey Kathy Baldree 324-7745 Daniel Schnur Teri A. Ciau Alice Dowdin Calvillo Jonathan Renner 445-0873 Executive Officer Director President Chair Executive Director Chair 574-1800 323-0403 SF 415-703-3703 322-5660 263-0700 322-3198 CALIFORNIA STATE DEPARTMENT OF Delta Stewardship MILITARY OFFICE OF MEDICAL ASSISTANCE OFFICE OF PLANNING TRANSPORTATION ARTS COUNCIL OFFICE OF THE PUBLIC DEFENDER PERSONNEL COUNCIL DEPARTMENT ADMINISTRATIVE LAW COMMISSION AND RESEARCH COMMISSION Muriel Johnson INSPECTOR GENERAL Michael J. Hersek ADMINISTRATION Joe Grindstaff BG Mary Kight Vacant Keith Berger Ken Alex Bimla Rhinehart Director Vacant Public Defender Ronald Yank Executive Officer Acting Adjutant General Director Executive Director Acting Director Executive Director 322-6555 9-830-3600 SF 415-904-5600 Director 445-4500 9-854-3500 323-6225 324-2726 322-2318 654-4245 SAC 916-322-2676 322-5193 SECRETARY OF SECRETARY OF SECRETARY OF DEPARTMENT OF DEPARTMENT OF SECRETARY OF SECRETARY OF LABOR AND SECRETARY OF OFFICE OF SECRETARY OF SECRETARY OF DEPARTMENT OF SECRETARY OF BUSINESS, DEPARTMENT OF CORRECTIONS ENVIRONMENTAL FINANCE FOOD AND HEALTH AND HUMAN WORKFORCE NATURAL THE STATE CHIEF SERVICE AND STATE AND VETERANS AFFAIRS EMERGENCY TRANSPORTATION AND AND REHABILITATION PROTECTION AGENCY AGRICULTURE SERVICES AGENCY DEVELOPMENT AGENCY RESOURCES INFORMATION VOLUNTEERING CONSUMER SERVICES MANAGEMENT AGENCY Ana Matosantos Vacant HOUSING AGENCY Matthew L. Cate, Secretary Linda Adams Diana Dooley Marty Morgenstern AGENCY OFFICER AGENCY Director Karen Ross 654-3345 Karen Baker Secretary Mike Dayton 323-6001 Secretary Secretary John Laird Michael Cohen Secretary David Maxwell-Jolly Vacant Secretary Vacant 653-2158 Acting Secretary Vacant Scott Kernan, Undersecretary 445-3846 327-9064 Chief Deputy Director 654-0433 Undersecretary 653-5656 State Chief 323-9116 653-4090 845-8510 Secretary 323-6001 W. Douglas Hoffner Rocky Chavez Cynthia Tuck 445-9862 654-3345 Vacant Information Officer 323-5401 Vacant, Undersecretary Vacant Undersecretary Vacant Undersecretary Vacant Undersecretary Pedro Reyes Michael Wilkening Undersecretary 319-9223 Traci Stevens 323-6001 Undersecretary Undersecretary 327-9064 Undersecretary 653-2158 Undersecretary 445-3846 Chief Deputy Director 654-0321 653-5656 Acting Undersecretary Vacant, Undersecretary 445-9862 654-3345 Paul Feist 653-4090 845-8510 327-3368 323-6001 Undersecretary 327-9064 DEPARTMENT OF DEPARTMENT OF ADULT OPERATIONS DEPARTMENT OF DEPARTMENT OF AGRICULTURAL DEPARTMENT OF DEPARTMENT OF AIR RESOURCES CALIFORNIA AFRICAN BUILDING STANDARDS TEACHERS’ ALCOHOLIC BEVERAGE CORPORATIONS DIVISION AGING ALCOHOL AND LABOR RESOURCES RECYCLING BOATING AND BOARD AMERICAN MUSEUM COMMISSION RETIREMENT SYSTEM CONTROL Preston DuFauchard Terri McDonald Lynn Daucher DRUG PROGRAMS RELATIONS BOARD AND RECOVERY WATERWAYS Mary D. Nichols Charmaine Jefferson E. Dave Walls Jack Ehnes Jacob Appelsmith Commissioner Chief Deputy Secretary Director Vacant Vacant Vacant Lucia Becerra Chair Executive Director Executive Director Chief Executive Officer Director LA 213-576-7500 323-6001 419-7500 Director Chair Director Acting Director 322-5840 213-744-7432 263-0916 414-2200 9-419-2500 SAC 916-324-9011 445-1943 653-3699 322-4027 263-4326 ADULT PROGRAMS DEPARTMENT OF DIVISION CHILD SUPPORT CALIFORNIA COASTAL DEPARTMENT OF CA Coastal Conservancy Elizabeth Siggins DEPARTMENT OF SERVICES DEPARTMENT OF EMPLOYMENT COMMISSION DEPARTMENT OF FAIR FINANCIAL CALIFORNIA HIGHWAY 510-286-1015 DEPARTMENT OF CALIFORNIA Acting Chief Deputy PESTICIDE Jan Sturla COMMUNITY SERVICES DEVELOPMENT Peter Douglas EMPLOYMENT INSTITUTIONS PATROL CA Tahoe Conservancy CONSUMER AFFAIRS SCIENCE CENTER Secretary REGULATION Director AND DEVELOPMENT DEPARTMENT Executive Director AND HOUSING William Haraf, Ph.D. Joseph Farrow 530-542-5580 Brian J. Stiger Jeffrey N. Rudolph Commissioner 323-6001 Mary Ann Warmerdam 464-5000 Cliff Allenby Vacant SF 415-904-5200 Phyllis Cheng Commissioner Santa Monica Mountains Acting Director Executive Director LA 213-897-2085 Director Acting Director Director 574-8200 Director SF 415-263-8507 657-7152 Conservancy LA 213-744-7483 445-4000 9-341-4300 654-8210 478-7251 SAC 916-322-5967 DEPARTMENT OF 310-589-3200 BOARD OF COLORADO RIVER DEVELOPMENTAL Sacramento-San Joaquin PAROLE HEARINGS BOARD OF CALIFORNIA
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