Governor Signs State Budget
On June 24, Governor Brown signed the $115.4 billion budget, following an agreement reached with the State Legislature the previous week, and down from a $117.5 billion budget initially proposed by the Legislature. Included in the final budget is a continued commitment to and additional funding for the State’s Slingshot initiative for which NOVA is a new grant recipient and $1.5 million for the re-entry workforce training grant program for the formerly incarcerated. Additionally, the budget included:
- An increase of $59 million and $25 million, respectively, for the California State University and University of California systems above the May revised budget to increase in-state enrollments;
- $40 million to expand Medi-Cal for all low-income undocumented children;
- $265 million to fund 7,000 additional preschool slots and 6,800 child care slots;
- $446 million on a one-time basis to restore the 7 percent reduction in service hours for In-Home Supportive Services; and
- Paid down debt for school deferrals, local government and mandates to K-14 schools and included savings for the Rainy Day Fund as required by Proposition 2.
The Governor did not approve the Legislature’s request to increase reimbursement rates for Medi-Cal and Denti-Cal providers, increased funding for grants to low-income blind and disabled seniors, and repeal of a provision of CalWORKs that denies additional aide to women who gave birth while participating in the welfare-to-work program.
As part of this budget agreement, the Governor also called for two special sessions to address the need for additional funding for the state’s infrastructure and the Medi-Cal program. For more information, please visit Governor Brown's website.
On June 25, the Senate Appropriations Committee approved a $153.2 billion FY’16 appropriations bill for the U.S. Departments of Labor, Health and Human Services, and Education that included sequestration (across the board cuts) and is $3.6 billion below the FY’15 levels. It also included $331 million cuts to Workforce Innovation and Opportunity Act (WIOA) employment and training programs. The House approved a similar $153 billion bill the day before that is $3.7 billion below FY’15 levels. Senate Democrats have opposed the bill, which will impact future budget negotiations. President Obama has indicated he will veto a bill that includes sequestration. These proposed funding cuts are expected to have devastating consequences to the local workforce development system.