![]() If necessary, those second-tier cuts would begin Feb. Should the deficit reach $2 billion, the school year would be shortened by seven days to save $1.54 billion and $248 million in home-to-school busing subsidies would end. At a $1 billion shortfall, in-home services for the elderly and disabled will be cut, university budgets would be reduced by $200 million, community-college fees will increase $10 per unit. All together, spending cuts of $2.5 billion would be triggered if the money doesn’t materialize. ![]() The budget includes a series of cuts to be activated if revenue falls below certain levels when the shortfall reaches $1 billion, and additional cuts are triggered if the shortfall grows to $2 billion. The state spent $1.7 billion more than budgeted through October 2011 and revenue was $810.5 million less than budgeted in October, bringing the total to 6.2 percent below expectations for July 1 through Oct. $100 million reduction for workers who care for the sick and elderly in their homes, although a federal judge recently issued a temporary order against such cuts in a lawsuit filed preemptively.$100 million in cuts to services for the developmentally disabled,.$330 million reduction to school budgets, including $248 million that pays for buses,.$100 million cuts to both University of California and California State University systems, which are in addition to the $650-million hit each took in the current budget,.The first tier of cuts announced by the governor will take effect on Jan. This is the first tier of cuts, and a second tier could be triggered should revenue fall $2 billion below hoped for levels. 13, 2011, $1 billion in budget cuts as part of the first tier of cuts built in to the state budget should revenue fall below what lawmakers planned. 3, 2012 that expands the ability to borrow from dedicated funds, which will make $865 million available to help keep the state in the black through early March 2012. The state transfers money from funds intended for specific expenses in order to keep the state's day to day operations running. A large increase from 10 years prior, when the state spent $4.8 billion. In FY2012, the state spent $9.8 billion on prisons. ![]() Medicaid spending increased 50 percent over 10 years. In FY2012, the state spent approximately $15 billion for Medicaid, known as Medi-Cal. įor FY2012, California devoted 24.7% of its total spending to education, up from 25.6% in FY2009. The state borrows money every fiscal year because it received tax payments in the spring. Leaders planned to borrow additional money from special state accounts (including several dedicated to transportation), delay Medi-Cal payments, and take out another loan from Wall Street. The governor's administration attributed the spending gap to courts blocking health and welfare cuts, as well as overestimating early savings in prison costs from redirecting inmates to counties. 29 and April 13, and the state then borrowed the money. State leaders had to find $3.3 billion to ensure California has enough cash to pay for priority programs between Feb. the state would be about $3.5 billion behind for this fiscal year The state was approximately $3.5 billion behind for this fiscal year as of May 2012, In March 2012, there was a shortfall of $233.5 million in revenue, 8.2 percent below projections, according to the state controller John Chiang. ![]() General fund spending was at its lowest level since the 1972-73 fiscal year when measured as a share of the state's economy. The general fund of the state budget was approximately $90 billion, but the state actually spent more than $250 billion when $70 billion in federal funds, plus special funds (such as gasoline taxes), state employee pension payouts and borrowed bond funds are included.
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