Assemblyman Wagner: Budget Fact Check – Governor Brown Predicts Increased Deficit
Posted by Newsletter Reprint on April 22, 2012
This came over the wire from Assemblyman Don Wagner’s office on Thursday…
Governor Brown Predicts Increased Deficit
Governor Brown, in an interview on the Bay Area talk radio station KGO 810 last week, was quoted as saying the deficit is “probably bigger now” than the $9.2 billion he estimated earlier this year. This edition of Budget Fact Check looks at what is driving the increase in the deficit.
- As of March, General Fund spending is up $2.1 billion over the adopted 2011-12 budget. A significant contributor to that spending increase is health and welfare spending. Education spending is down from the adopted 2011-12 budget due to the trigger cuts adopted as part of the majority vote budget.
- The Assembly has rejected close to $2 billion of the Governor’s proposed spending cuts this year. In addition, the Governor asked for certain spending reductions to begin in May. But the Legislature has failed to act, adding millions more to the deficit.[i]
- According to the Department of Finance, revenues are down about a billion dollars from the adopted 2011-12 budget, as of the end of March. Important April tax return data may show a further erosion of projected revenues.
Click here to continue reading “Governor Brown Predicts Increased Deficit.”
[i] Finance Bulletin, April 2012
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