An improving budget situation

Assemblymember Marie Waldron

AD-75 (R)

On May 14, Governor Brown released his $115.3 billion "May Revise," a budget revision based on updated revenue projections. Fortunately, California’s financial picture has brightened, with revenue growth since June, 2014 more than $14 billion over expectations.

Protecting California’s K-12 and higher education system remains a top priority for me, and I am pleased the improving financial situation will allow more funding to support our schools, colleges and universities. Additional funding for the UC system will only be made available if tuition is frozen, keeping a promise made to voters when Proposition 30 passed in 2012.

With California mired in a long drought, the budget sets aside $2.2 billion for drought-related programs. Water infrastructure projects, including desalination, and water recycling plants will receive millions in additional revenue. Even so, legislators and the Governor must work together to ensure these projects are fast-tracked.

While the operating budget is balanced, California still faces billions in unfunded liabilities. The recovery remains precarious. We still have one of the nation’s highest unemployment rates. The slightest economic hiccup will generate decreasing revenues, more spending and a return to double-digit deficits.

Given that, the May Revise continues to build the state’s "Rainy Day Fund," a necessary precaution in these uncertain times. As a hedge against future economic downturns, that reserve must grow and remain secure.

With its focus on schools, higher education and water infrastructure, the "May Revise" provides a constructive blueprint for the coming fiscal year. I am optimistic about prospects for passage of a balanced budget by the June 15 deadline.