Revenue Surplus Predicted by LAO Could Go to Health Programs
Democratic lawmakers in the state are expected to urge Gov. Jerry Brown (D) to use the additional money to increase spending on government programs, such as public health care (Megerian, "PolitiCal," Los Angeles Times, 5/19).
Details of Report
LAO estimates that California will receive about $3.1 billion more in tax revenue than the $113.3 billion projected in Brown's revised fiscal year 2015-2016 budget plan (Miller, "Capitol Alert," Sacramento Bee, 5/18).
A previous LAO report projected that California was on pace to exceed revenue estimates in Brown's original FY 2015-2016 budget proposal by about $4 billion.
Under a California school funding law, schools and community colleges would receive most of the state's extra tax revenue (California Healthline, 4/27).
According to "PolitiCal," the extra school and community college funding would amount to about $660 million. Meanwhile, $1.5 billion would be diverted into the state's rainy-day fund and used for debt payments.
After setting aside those funds, the state would be left with about $1.1 billion for lawmakers and Brown to decide how to spend, according to the report.
Dems To Push for Government Services Spending
According to "PolitiCal," the surplus in discretionary funding likely will spark debate among lawmakers on how to use the money.
For example, Democrats likely will seek additional funding for government programs, including:
- Child care services; and
- Public health care for undocumented immigrants ("PolitiCal," Los Angeles Times, 5/19).