Michael Shaw

California Legislature sends budget to Governor Brown

By Michael Shaw, VP, Government Relations

Capitol Update, June 19, 2017 Share this on FacebookTweet thisEmail this to a friend


In accordance with the constitutionally mandated June 15th budget deadline for the Legislature to approve the state budget, the Legislature worked feverishly Thursday to meet the deadline passing a $183.2 billion package on a 28-10 vote in the Senate and 59-20 vote in the Assembly. The package is focused on increasing school funding, expanding the Earned Income Tax Credit (EITC) for the working poor, and more. In addition to the main budget bill, the Legislature approved a few of the “trailer bills” that provide greater detail and direction on the budget expenditures and at times even putting forth unrelated policy that is often controversial. Some of the noteworthy components of the trailer bills passed yesterday include:

  • Reform of the Board of Equalization (BOE), curtailing its power drastically in the wake of a host of highly publicized negative audits;
  • Specified expenditures of more than $1.2 billion in tobacco tax revenue generated as a result of Prop 56 passed by voters last year, directing a portion towards increased provider rate increases;
  • Alteration of the timeline for qualifying recall ballot measures, stemming from the ongoing recall process of Senator Josh Newman (D-Irvine) over his vote for the gas tax passed earlier this year;
  • Additional provisions and clarification associated with the legalized recreational use of marijuana passed by voters last year; and more.

The budget did not include CMTA priority issues related to Career Technical Education (CTE) funding or the Sales and Use Tax Exemption (STE) extension. And the larger debate on the Cap-and-Trade program continues.

While a number of trailer bills were passed, a handful have yet to be debated and passed by the Legislature. Those can move at a later date – potentially even as late as the last day of session. As for the main budget bill and those trailer bills passed, the Governor has until June 30th to sign the budget. More to come….

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