The Current Situation
- Significant additional funding for schools and community colleges as a result of the requirements of Proposition 98 and a new plan for the allocation of funds to K-12 schools and county offices of education
- An increase in funding for the University of California and the California State University in the hope of avoiding tuition increases at the universities for the next several years. The budget also anticipates that reforms at UC and CSU will lead to more efficient operation, thereby reducing the need for increases in tuition.
- Options for expanding health care for low-income individuals and families through Medi-Cal under federal health care reform
- A multiyear plan to eliminate most of the so-called “wall of debt,” -- budgetary obligations totaling around $30 billion incurred in recent years
In March, the Legislature will begin to hold committee hearings on the budget. Proposition 25, which was passed by voters in 2010, changed the 2/3rds vote requirement to pass a budget to a simple majority. However, a 2/3rds vote is still required to increase revenues.