Fiscal Year 2013-2015 Special Budget Meeting
Informational ReportFiled under council matter 12-0351
Subject: Fiscal Year 2013-2015 Special Budget Meeting From: City Administrator's Office Recommendation: Receive A Presentation And Hold Discussion On The Mayor's Proposed Budget For Fiscal Year 2013-2015
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HONORABLE MAYOR AND CITY COUNCIL
Subject: Federal and State Budgetary Action Standing Report
Date: June 10,2013
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keep the Eastmont Center open, which will save 34 of slots. If the proposal is approved by the
City Council, the service level will be 1,710 slots, resulting in a decrease of 68 slots.
Of note, there will not be aT\y impacts to children who are currently registered with the program.
The service impact lies on the reduction of future enrollment.
State:
In April, the State collected more income tax then expected; however, it is projected that the
extra revenue will be allocated to community college and k-12 in accordance to Proposition 98.
The Governor's Office has released the May Revision to the Governor's FY 2013-14 Proposed
Budget. The hijghlights of the revised proposal are listed below:
Overview:
•
It reflects the continuation of the state's economic and budget recovery
•
The national economic outlook has dimmed since the Governor's Budget and recent
federal actions have slowed the pace of the state's economic growth
•
In the past four months, the state has experienced a multibiUion dollar increase in current-
year cash receipts. Yet, it should be noted that most, if not all of this increase will be
allocated to schools as well as from the implementation of the Local Control Funding
Formula.
Revenue:
•
Personal income growth was adjusted downward from a 4.3% growth rate to 2.2% due to
the federal government's action on not extending the 2% payroll lax reduction.
•
Personal Income Tax is adjusted downwards by 4.8%; Tobacco tax downward by 2.2%;
Motor Vehicle Fee downward by 20.7%; "others" downwards by 42.4%
•
Sales Tax is adjusted upward by 13.6%; Corporate Tax upward by 13.3%, Insurance Tax
upward by 2%; and Liquor Tax upward by 2.2%
Expenditures:
•
$2.9 billion expenditure upward adjustment for K-12 due lo Prop. 98 formula
•
$467 million expenditure upward adjustment for Medi-Cal costs due to federal and court
actions
•
The state improved fiscal condition reduces the cost of borrowing by $484 million.
•
Expenditure upward adjustment to the CalWORKs for job training program
•
$72 million additional appropriation to counties for assisting the stale in reducing its
prison population