INPUT Analyst Erin Brady reports.
The state of California released Governor Brown’s revised FY 2011-12 budget in mid-May 2011. The revised budget addresses the solutions put forth in the Governor’s Recommended Budget released in January 2011, along with additional solutions deemed necessary to reduce the state’s budget deficit. Even with $13.4 billion in solutions proposed in the January budget, most of which were accepted by the legislature, a $9.6 billion shortfall remains. To balance the budget and create a $1.2 billion reserve, the May revision proposes $10.8 billion in solutions.
In the revision, Governor Brown notes that much of the state’s deficit is a result of too much borrowing, and he suggests several ways of reversing the damage done. One of his ideas proposes the reduction of state government.
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