The state budget adopted by the California State Legislature and signed by the Governor represents a responsible, balanced, and comprehensive spending plan that prioritizes our public schools and keeps our state on the road to economic recovery.  I am pleased that the Governor and Democratic legislative leaders were able to produce an agreement that enabled us to enact a balanced budget in time for the new fiscal year, so that there will be no interruption in funding for schools, local governments and businesses that contract with the state.

The budget agreement closes the remainder of the deficit for this year and eliminates 75% of the structural deficit for future budget years.  This will send a strong signal to credit rating agencies and the bond market that California intends to operate in the black.

Thanks to the economic recovery, our state is receiving more revenues than we had originally expected and our budget is based upon a continuation of that growth.  However, we have also built in a series of automatic budget cuts that will be made if the economy stalls and those revenues do not materialize.  While it is unlikely that we will need these mid-year cuts, we have taken a cautious and prudent approach that will ensure that as a state we are living within our means.

CONTACT: Dale Kelly Bankhead, (619) 645-3090 or (619) 549-3140 (cell)