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Overview of the Proposition 98 2017-18 Governor’s Budget
April, 2017
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Dollars in Billions
Proposition 98 has grown 55% over the last 7 years.
47.3 58.0 58.9 67.1 68.7 71.4 73.5
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Overview of the Proposition 98 2017-18 Governors Budget April, 2017 - - PowerPoint PPT Presentation
Overview of the Proposition 98 2017-18 Governors Budget April, 2017 - - PowerPoint PPT Presentation
Overview of the Proposition 98 2017-18 Governors Budget April, 2017 Jeff Bell Program Budget Manager Proposition 98 has grown 55% over the last 7 years. 2 73.5 Dollars in Billions 71.4 68.7 67.1 58.9 58.0 47.3 2011-12 2012-13
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LCFF Projected to be 96% Implemented in 2017-18
Dollars in Billions
2012-13 2013-14 72% 2014-15 80% 2015-16 90% 2016-17 96% 2017-18 96% 39.0 41.7 48.0 52.8 55.8
Target GAP Base
Percent of LCFF Target Level Funded
Target Base
GAP Funding
56.6
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4 Dollars in Thousands
Proposition 98 K-12 per pupil funding has grown 56% over the last seven years.
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
7.0 8.7 8.7 10.0 10.2 10.6 10.9
K-12 Funding per Average Daily Attendance $3,900 per pupil increase
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Now, for the bad news… The Budget reflects a revised revenue forecast that is $5.8 billion lower for 2015-16 through 2017-18. Without action, the state would face annual deficits of up to $2 billion.
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20 40 60 80 100 120 140 July 1954 May 1958 March 1961 December 1970 April 1975 August 1980 December 1982 April 1991 December 2001 Average Current (July 2009) Number of Months Month that Expansion Started
Current Recovery Already Two Years Longer Than Average
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Balanced Budgets Have Been Quickly Followed by Huge Deficits
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13.8% 27.5% 24.7% 18.4% 24.9% 21.8% 23.9% 33.3% 48.7% 47.5% 36.9% 50.6% 45.4% 48.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Top 1% of Taxpayers Proportion of Income and Income Tax California
Top 1% Proportion of Income Top 1% Proportion of PIT
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Unpredictable Capital Gains
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What’s new in 2017-18?
IT’S BACK!
The Deferral!
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$10,430 $5,002 $1,653 $0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Deferral Balance
$0 $859 $0
Dollars in Millions
Deferral Balances
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What’s different?
- It is less than 3% of the overall
apportionment – 1/3 of June Pmt
- Does not roll forward
- Paid back in early July
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But wait, there’s more to talk about! One-time discretionary funding
1000 2000 3000 4000 5000 6000 2014-15 2015-16 2016-17 2017-18 Total
$3.2 billion $287 million $1.1 billion $4.9 billion
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Proposition 98 Debt Reduced by Over $23 Billion 2011-12 2016-17
$27.5 B
$4.1 B 14
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What’s no longer in the budget…
- $400 million for affordable housing.
- $227 million in child care increases and COLA.
- Middle Class Scholarships to new students.
- $300 million to modernize state office buildings.
- New spending proposals from other state
departments that were otherwise justified.
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16 39% 11% 31% 9% 9% Others Higher Education Health & Human Services Corrections & Rehabilitation Education $34.0 B 42% 12% 28% 9% 9% Others Higher Education Health & Human Services Corrections & Rehabilitation Education $52.2 B
General Fund Expenditure by Agency
2011-12 2017-18
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Education Still the Big Dog in the House!
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