Governor Jerry Brown signed the Fiscal Year 2011-2012 State Budget Act on June 30th. The final package, which balances the State Budget, was adopted by the Legislature on a majority vote with no Republican support, and imposes program cuts beyond those slated in prior versions to make up some of the remaining $9.6 billion of red ink.
The new budget also utilizes $4 billion in "anticipated" higher revenues for the 2011-12 Fiscal Year. If the higher
revenues do not materialize, the budget package includes triggers on additional cuts to bring spending for the last half of the year back to balance.
By any measure, the budget package is more of the same deferrals of deficits we've seen from Sacramento nearly every year for the last 15 years. The difference about this year's budget is that it is honest about exactly what revenues it anticipates, and what cuts will be imposed if those revenues do not materialize.
Budget decisions made in Sacramento also impact LA County, including programs and services CAPE members provide. The good news for CAPE members is that Republican demands to wrap broad-brush public employee pension reforms (reforms which would have adversely impacted LACERA and reduced employees' pension benefits) into the State Budget process were averted. The bad news, however, is that County CEO William Fujioka has reported the newly adopted State Budget for FY 2011-2012 will result in a County loss of approximately $363 million.
The full impact of the adopted State Budget on Los Angeles County programs is not yet known. Reduction in court funding, realignment of public safety and child welfare services, and the takeover of redevelopment funds will change the way Los Angeles County does business. Additionally, how the county will deal with the lost revenue and what will happen if any or all of the $4 billion of additional "anticipated" revenues for the state do not materialize remains unclear. CAPE is continuing to monitor State and County finances, and we will remain engaged to mitigate any potential adverse impacts on LA County, CAPE members, or the important public services CAPE members provide. IMPORTANT DATES July 15: Last day to request duplicate LACERA ballot July 19: CAPE/DPW Lunch Meeting, Alhambra Room Aug 01: CAPE Board election ballots mailed Aug 02: LACERA election deadline Aug 31: CAPE Board election deadline