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Highlights of Gov. Jerry Brown’s budget plan

Gov. Jerry Brown, center, talks with adviser Nancy McFadden, left, and Finance Director Michael Cohen, right, as he walks to a news conference to unveil his proposed 2015-16 state budget plan in Sacramento, Calif., on Friday, Jan. 9, 2015.
Gov. Jerry Brown, center, talks with adviser Nancy McFadden, left, and Finance Director Michael Cohen, right, as he walks to a news conference to unveil his proposed 2015-16 state budget plan in Sacramento, Calif., on Friday, Jan. 9, 2015. AP

BUDGET HIGHLIGHTS

Here are the highlights of Gov. Jerry Brown’s proposed $164.7 billion budget:

Revenue

▪ Revenue from July 2014 through June 2016 is projected to exceed previous estimates by $4 billion. Major growth in income and corporation taxes.

Spending

▪ $65.7 billion for schools and community colleges, an increase of almost $8 billion.

▪ $532 million from water bond for water conservation, recycling, storage and other projects.

▪ An additional $119.5 million for the University of California, but only if it caps out-of-state enrollment and freezes tuition. California State University also gets $120 million, plus $25 million for degree-completion efforts.

▪ Additional $750 million in grants for adult education and career technical education to improve job training.

▪ $300 million to help pay for $85,000-per-treatment Hepatitis C drugs for prison inmates, Medi-Cal participants and others.

▪ Medi-Cal caseloads grow to almost 12.2 million, costing the general fund $18.6 billion, an increase of 4.3 percent.

▪ Restores 7 percent cut in service hours for in-home care program, at a cost of $483.1 million.

▪ $533 million toward reimbursing cities and counties for pre-2004 state mandates.

▪ Includes $9.4 million for a pilot program to gauge workability of a “road usage charge,” instead of the current reliance on gas taxes.

Major policy changes

▪ Reduces $72 billion unfunded retiree health care liability by seeking agreement for employees to pay more and have more years of service for the benefit.

▪ Creates a new tax on managed care plans, generating $1.1 billion in 2015-16, to help pay for in-home care and other programs.

▪ Moves the state closer to getting out of the school construction and modernization business.

▪ Reduces the state’s role overseeing the dissolution of former redevelopment agencies.

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