Gov. Schwarzenegger Signs Budget that Creates Historic Reserve

From left: Governor Arnold Schwarzenegger, Senate Republican Leader Dick Ackerman (R-Irvine) and Assembly Speaker Fabian Núñez (D-Los Angeles).

Gov. Arnold Schwarzenegger signed California's state budget today that creates a $4.1 billion reserve fund, fully funds education and public safety and pays down the state's debt. He also followed through on a commitment to use his veto pen to reduce spending by an additional $700 million. For the fourth year in a row, the budget does not raise taxes.

"Three and a half years ago, when the projected deficit was $16.5 billion, no one thought we could have a budget that eliminates the operating deficit. But every year since I took office, we have brought the deficit down further and further. I applaud the Republicans for pushing us to take the operating deficit down to zero this year," Governor Schwarzenegger said. "And I applaud the Democrats for being willing to compromise while sticking to their principles to get the budget done. It was a difficult process, but in the end, this is a good budget for California.

"Our budget reflects the values of California; we fully fund education, public safety and pay down debt, including more than $1 billion in early payments that make California even more financially stable. We also set aside a reserve fund of $4.1 billion, the biggest ever - and we did all this with a General Fund spending increase of just six-tenths of one percent, so this is a very prudent spending plan."

Details of the budget include:

The 2007 Budget Act builds an unprecedented safety net for California's Economy.

This budget has a $4.1 billion reserve-the largest of any budget act in the state's history.

The May Revision proposed a total reserve of $2.2 billion. The Governor and Legislature took actions to reduce spending even further, and as a result of the Governor's $703 million in General Fund vetoes, today's reserve is $4.1 billion.

The 2007 Budget Act holds spending to less than one percent and promotes responsible growth.

The Governor's $703 million in General Fund vetoes hold spending growth in this budget to just 0.6 percent.

The 2007 Budget Act eliminates a projected $16.5 billion state deficit.

The Governor's actions zero out this year's operating deficit. When the Governor took office, the state's projected deficit for the fiscal year that ended on June 30 was $16.5 billion.

The 2007 Budget Act fully funds our schools, law enforcement and our environmental priorities.

This budget fully funds K-12 education, increasing Proposition 98 funding by 3.9 percent, and the Governor's higher education compact.

It fully funds law enforcement and the state's compact with the judiciary.

Investing in Students and Schools

The 2007 Budget Act fully funds Proposition 98 and K-12 education with a $66.8 billion ($41.4 billion General Fund, $25.4 billion from other funds) investment. The budget also maintains the Higher Education Compact with the University of California and California State University for the third straight year, providing $19.7 billion in funding from all revenue sources. Highlights include:

K-12

Per-pupil funding. Provides total per-pupil funding of $11,541 in 2007-08, a 21 percent increase in per-pupil funding since the Governor took office.

Proposition 98. Fully funds Proposition 98 at $57.1 billion, a 22 percent increase since the Governor took office. The Budget Act replaces $429 million in ongoing Proposition 98 General Fund dollars with funding from the Public Transportation Account (PTA) and the Proposition 98 Reversion Account.

Career Technical Education: $52 million ($20 million in ongoing Proposition 98 funding and $32 from other sources) to enhance Career Technical Education programs.

Star Testing: $2.1 million in Proposition 98 General Fund to continue second grade Standardized Testing and Reporting (STAR) program.

Collecting Student Data: $3.9 million to support the development of the California Longitudinal Pupil Achievement Data System.

Child Care: $3.3 billion for K-12 child care programs, to provide almost 950,000 child care slots. The budget also continues $50 million in Prop 98 funding for the first phase of a three-year initiative to expand preschool opportunities for four-year olds residing in attendance areas of schools ranked in the lowest three deciles of the 2005 Academic Performance Index.

Higher Education

UC: Funded at over $5.4 billion, including almost $3.3 billion General Fund. This is 6.8 percent above the 2006-07 budget.

CSU: Funded at nearly $4.4 billion, including approximately $3 billion General Fund. This is 6.9 percent above the 2006-07 budget.

CCC: Funded at more than $8.5 billion, including approximately $4.5 billion General Fund. This is 3.8 percent above the revised 2006-07 budget level.

Maintaining Law and Order

The 2007 Budget Act continues the Governor's commitment to public safety by fully funding local law enforcement and critical resources to fight and prosecute crime. The 2007-08 budget includes more than $600 Million for local law enforcement. Highlights include:

$1.8 billion and 11,214 positions for support of the California Highway Patrol. This is an increase of $231.5 million over the 2006-07 budget.

$106 million General Fund for the California Department of Corrections and Rehabilitation to implement the Comprehensive Sex Offender Management Plan, which includes Jessica's Law enforcement and GPS devices for paroled sex offenders.

$41.7 million to continue the replacement of the CHP's outdated radio system, and $16.6 million to add 120 uniformed and 41 non-uniformed CHP positions.

$25.5 million for various programs to support anti-gang efforts, including $9.5 million Restitution Fund for local anti-gang programs.

$6.7 million Restitution Fund for the California Witness Protection Program, allowing the Department of Justice to better support district attorneys in protecting witnesses and their families.

$2 million to put a DNA project in place that will provide automated fingerprint verification systems throughout all California law enforcement agencies, enhancing the efficiency of the state's DNA collection efforts.

Funding Environmental Protection

The 2007 Budget Act continues Governor Schwarzenegger's commitment to our environment by directing more than $250 million to improve our air quality and providing nearly $25 million to fight global warming. Highlights include:

$250 million in Proposition 1B funding to improve air quality along California's main highways and trade corridors.

$105.3 million to reduce pollution in our water sources and fund local community clean-water projects.

$23.7 million for implementation of AB 32, the California Global Warming Solutions Act.

$6.03 million for the Governor's Hydrogen Highway Initiative, to further diversity the use of alternative transportation fuels in California.

$3.1 million to accelerate the cleanup of brownfield sites.

From left: Senate Republican Leader Dick Ackerman (R-Irvine), Assembly Speaker Fabian Núñez (D-Los Angeles), Governor Arnold Schwarzenegger, Sacramento County District Attorney Jan Scully, San Bernardino County District Attorney Michael Ramos and South Lake Tahoe Mayor Kathay Lovell.

Protecting Vulnerable Californians

The 2007 Budget Act maintains a wide range of critical services for many of California's most vulnerable and at-risk residents. Highlights include:

$4.1 billion ($1.6 billion General Fund) to support child welfare, including abuse prevention, foster care and adoption and foster care services, a 4.5 percent increase over revised 2006 Budget Act levels.

$1.1 billion ($398.7 million General Fund) to fully fund the Healthy Families Program, an increase of $93.6 million above the revised 2006 Budget Act level. The 2007 Budget Act includes $58.9 million to maximize enrollment in HFP, increase retention and help counties enroll eligible kids.

$288.9 million to fully fund the AIDS Drug Assistance Program. This funding brings services to more than 32,900 clients in 2007-08.

$133 million for Access for Infants and Mothers program, an $8.8 million increase above the revised 2006 Budget Act level.

$118.4 million to help screen newborns and pregnant women for genetic and congenital disorders, a net increase of $20.7 million above the 2006 Budget Act.

Reducing Prison Overcrowding and Increasing Rehabilitation

The 2007 Budget Act, along with AB 900, provide significant funding to reduce crisis levels of overcrowding in our prisons, continue the state's efforts to improve rehabilitation programs, reform the juvenile justice system in California and meet various court requirements. Highlights include:

$90.1 million for inmate education programs, community partnerships, parolee services, institutions rehabilitative and treatment programs, and research and support services.

$24 million to provide counties with resources to provide housing and services to juvenile offenders that, due to changes in state law, will no longer be housed in Division of Juvenile Justice facilities or supervised by the Division of Juvenile Parole Operations and will now be the responsibility of local jurisdictions.

$24.2 million in 2007-08 to transfer 5,060 inmates to out of state facilities.

$11.9 million ($2.4 million General Fund and $9.5 million in Reimbursement authority) for the CDCR's Office of Facilities Management and Support Services Division to address workload associated with AB 900 prison construction projects.

$1.7 million General Fund for the Corrections Standards Authority to administer the local jail bed construction grants authorized by AB 900.

AB 900, the Public Safety and Offender Rehabilitation Services Act of 2007 appropriates $50 million for additional rehabilitative programming activities. AB 900 authorizes over $6.1 billion in lease-revenue bonds to build 16,000 infill beds, 16,000 reentry facility beds, and 8,000 health care beds, and authorizes $1.2 billion in lease-revenue bonds to add 13,000 county jail beds. AB 900 also appropriates $300 million to make infrastructure improvements at state prisons.

judythpiazza@newsblaze.com

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