California’s 2011–2012 Budget: Balancing the Budget Behemoth

Abstract

DOI 10.1515/cjpp-2012-0029 Calif. J. Politics Policy 2012; 4(3): 56–90 Research Article Brian DiSarro* and Wesley Hussey* California’s 2011–2012 Budget: Balancing the Budget Behemoth Abstract: This report begins with an explanation of California’s budget process as well as an overview of the 2010 election’s impact over that process. It is followed by a narrative of how the budget process played out this past year, an analysis of the enacted budget, and an outlook for the future. Keywords: budget; budget politics; governor; Jerry Brown; legislature; western state budget report *Corresponding authors: Brian DiSarro and Wesley Hussey, Department of Government, California State University, 3104 Tahoe Hall, Sacramento, CA 95819, USA 1 Introduction In January 2011, Governor Jerry Brown submitted his proposed FY 2011–2012 budget. The estimated $25.4 billion shortfall stems from the combination of an $8.2 billion deficit from the current year’s 2010–2011 budget along with a $17.2 billion projected revenue gap for the upcoming fiscal year. To balance the budget, Brown proposed a combination of severe budget cuts, along with the extension of a series of temporary tax increases, but only if approved by California voters. His proposed budget also includes a $1 billion reserve, which is why some observers in the media have reported a $26.4 billion deficit. 2 The Budget Process in California Budget-making in California is a constant and ongoing process. At any given time, some branch or agency of state government is analyzing how much revenue the state is raising (or expecting to raise) through taxes and fees, and how much of that revenue can be allocated to meet the state’s numerous (and growing) obligations.