Apparent Legislative Agreement on the Budget - June 11, 2012
The Assembly Budget Committee released a high-level summary of the agreement reached by the Legislative majority on the 2012-13 budget. You can read it here (CCC summary is on page 39):
For CCCs, the detail is largely consistent with the Governor’s May Revise. If the November ballot initiative passes, CCCs will sustain no direct cuts and will have inter-year deferrals reduced by $313M. If the initiative fails, the deferrals will not be reduced and the CCCs will sustain a cut of $286.5M. As I noted last week, trailer bill language will hold districts harmless for the $201M liquid assets piece of the RDA property tax plug, but there is no hold harmless for the $140M increment piece. To the extent the $140M is overstated, the system could be facing a deficit.
Of import to many at your colleges is that the Legislature is rejecting the Governor’s categorical consolidation proposal and also the cuts to Cal Grants. The Legislature reverses cuts to Cal Grants and some other programs largely by decreasing the Governor’s proposed reserve. It is not yet clear if the Governor will sustain or veto any of these restorations.
We will update you on new developments as they arise, but it appears the current plan is to have the full budget committees adopt this proposal on Tuesday and for full floor votes on Friday.
I’ll provide a more comprehensive report when the Budget Act is finalized, and our office is currently working on dates and locations for our annual workshops. You’ll hear more from us, soon.