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What's in the budget?

Published: Thursday, Jun. 28, 2012 - 12:00 am | Page 12A
Last Modified: Thursday, Jun. 28, 2012 - 12:06 am

Gov. Jerry Brown signed the main budget bill Wednesday as lawmakers sent him remaining legislation they say will close an estimated $15.7 billion gap for the fiscal year that begins July 1. Here's some of what they did:

• TAXES: Assumes voters in November approve a sales tax increase and income tax increase on those earning more than $250,000 a year. Only $5.6 billion of the $8.5 billion that Brown's tax measure would raise would go to reduce the deficit. K-14 education would get the rest under Proposition 98.

• K-12 EDUCATION: Provides schools more this year if Brown's tax increases pass on Nov. 6. If they don't, schools would be cut by about 10 percent and districts would be given the option of cutting the school year by 15 days each of the next two years. Rejects Brown's proposals to eliminate transitional kindergarten and the state mandate to require a second year of high school science.

• HIGHER EDUCATION: If Brown's taxes fail, subjects CSU and UC to a $250 million cut. If the taxes pass, gives CSU and UC $125 million each if they agree to freeze tuition in 2012-13. Restricts Cal Grants to colleges with lower loan default rates and higher graduation rates.

• STATE WORKERS: Assumes 5 percent reduction in compensation costs by reaching furlough agreements with 21 bargaining units. As of Wednesday, 17 units had agreed, most by taking one unpaid furlough day each month.

• HEALTH CARE: Eliminates Healthy Families program, moving clients to Medi-Cal. Reduces payments to hospitals and nursing homes.

• WELFARE: Reduces aid limit from four years to two, beginning next year, and creates many exemptions to protect one-fifth of all recipients. Rejects Brown's plan to cut grants for kids whose parents time out.

• IN-HOME CARE: Rejects Brown's plan to cut caregiver hours by 7 percent across the board and eliminate domestic services in shared households. Continues 3.6 percent cut in hours. Shifts pay negotiations for workers from counties to a state board, which labor hopes will raise wages.

• CHILD CARE: Rejects deeper cuts proposed by Brown but eliminates $80 million, equivalent to 10,500 slots.

• COURTS: Cuts $544 million from county courts by taking reserves and courthouse construction funds. Construction projects in Yolo, San Joaquin, Sutter and five other counties are not affected.

• PRISONS: Ends program to house prisoners out of state. Funds three dormitories at existing prisons, which will ultimately close the California Rehabilitation Center in Norco.

• REDEVELOPMENT: Relies on $1.4 billion from former redevelopment assets, as well as $1.7 billion in property taxes that would have otherwise gone to redevelopment agencies. Allows state to withhold tax payments to cities if it believes "successor agencies" are spending too much to retire debt.

• BORROWING, FUND TRANSFERS: Borrows $312 million from state disability fund to make interest payment on loan for unemployment fund. Transfers $697 million from highway and vehicle fuel funds. Borrows $432 million from motor vehicle fund. Delays $307 million in loan payments.

• MORTGAGE SETTLEMENT: Takes $410 million from California's settlement with major banks, mostly to pay interest for housing bonds.

• STATE MANDATES: Eliminates several requirements, including the Open Meeting Law (and $828 million in payments) for local governments.

• OTHER CUTS IF TAXES DON'T PASS: Cuts funding for developmentally disabled programs by $50 million and reduces state game wardens, lifeguards and park rangers.

Source: Governor's Office, California Legislature

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