Advocacy Groups Ask for Funding Increases
Groups that receive state funding are asking for increases in fiscal year 2006-2007 as the state faces an unexpected $4 billion tax revenue windfall, the Sacramento Bee reports. Finance experts expect the strong economic trend to continue and increase the amount of money available for FY 2007-2008.
As a result, many advocates are asking for increases to restore benefits that were reduced during the state's budget crisis, including doctors who are asking for a 15% reimbursement rate increase this year for treating Medi-Cal beneficiaries.
Gov. Schwarzenegger will revise his spending plan on Monday to detail how he proposes to use the increased revenue. The plan likely will be larger than the $125.6 billion state budget proposal he released in January.
Schwarzenegger's preliminary budget already included spending increases for oversight of care facilities for children, the elderly and the disabled. He is expected to use the additional tax revenue to increase funding for schools and to pay down the state's debt.
The governor's budget proposal will be released Friday, and the Legislature has until June 15 to amend and approve the plan (Benson, Sacramento Bee, 5/8).