Latest State Budget Ever Is Reason No. 1 for Reform

After the longest delay in state history, the budget package just approved points to the urgent need to reform California’s broken budget process.

The budget plan closes the $19.1 billion state budget shortfall and scales back the most drastic proposed cuts to health and social service programs.
But deep cuts to schools and child care for struggling families could have been avoided by adopting measures that the overwhelming majority of Californians support, such as closing the oil extraction tax loophole.



“It’s clear that California needs a reformed budget process, which starts by supporting Propositions 24 and 25,” saidLinda Dent, SEIU 721 Vice President and Intermediate Clerk, LA County Treasurer and Tax Collector.
Proposition 24 ends $1.3 billion in special tax loopholes for big corporations
and ensures that a few big corporations pay their fair share of state taxes at a time when the state is making drastic budget cuts to public schools, health care and public safety.
Proposition 25 reforms California’s broken budget process by requiring a majority vote on the state budget and holds legislators accountable for failing to do their jobs. If they fail to pass a budget on time, they don’t get paid. And they can’t pay themselves back later.

SEIU Action Protects Health, Social Services and Local Government Funds 

As a result of SEIU action, county and city services that depend on state funding face fewer cuts and revenue raids than in previous years.

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  Maintained Health and Social Services Programs:
  The budget rejects the Governor’s proposals to eliminate CalWORKs, community mental health programs, adult day health care, and the significant reductions proposed to the In-Home Supportive Services program.
• 
  Schools Face Cuts but UC and CSU Cover Enrollment Costs:
  K-12 education funding is at roughly $49.7 billion ($1.9 billion will be deferred payments to schools in the next fiscal year). The University of California and California State University receive funding sufficient to fully fund projected enrollment. Community colleges receive $126 million to fund enrollment growth for 26,000 new students.
• 
  Governor Slashes Child Welfare and Mental Health in Schools at Last Minute:
  Last year, the Governor vetoed $133 million from Child Welfare Services, which resulted in over 600 social worker lay-offs and placed abused and neglected children in harm’s way. This year SEIU led the charge in developing a coalition (Protect Our Children, Protect Our Future) of CWS and foster care advocates to restore the Governor’s $133 million veto from last year. But the governor again vetoed the restored funding. The Governor also vetoed $133 million from AB 3632, which provides funding to counties for children’s mental health services in schools.
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  Big Oil Still Drilling for Free, but Tax Break on Big Corporations Delayed:
  The budget does not close the $1.2 billion tax loophole on oil companies, even though California is the only major oil-producing state that does not tax oil drilling off our shores or beneath our ground. SEIU members helped bring statewide attention to the issue in a march on Oxy Petroleum in Westwood and other actions. However, the budget increases corporate accountability through a delayed tax break on corporations that will generate $1.2 billion in revenue.