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Proposals for plugging California's budget deficit

July 20, 2009 |  9:31 pm

After months of negotiating, California’s government leaders announced an agreement today on how to plug the state’s $26.3-billion deficit. Here are some ways they propose to help close the gap:

CUTS

  • K-12 and community college education -- $4.3 billion
  • Higher education -- $3 billion
  • Medi-Cal -- $1.3 billion
  • State worker pay -- $1.3 billion
  • Corrections -- $1.2 billion
  • CalWorks/welfare -- $528 million
  • Home health aides -- $226 million*
  • Healthy Families children’s insurance -- $124 million
  • Local transportation -- $1 billion*
  • Redevelopment agencies -- $1.7 billion*

REVENUES

  • Accelerate income tax withholding -- $1.7 billion
  • Increase estimated tax payments for businesses and the self-employed -- $610 million

OTHER NEW FUNDS

  • Sale of State Compensation Insurance Fund -- $1 billion
  • Assumed federal funds for Medi-Cal program -- $1 billion

ACCOUNTING SHIFTS/BORROWING

  • Local government borrowing -- $2 billion
  • Education deferrals -- $1.7 billion
  • June 2010 state worker paycheck deferral -- $1.2 billion

-- The Times Sacramento Bureau

(Note: Numbers are incomplete and don't add up to $26.3 billion.  Items with * were added or updated at 10:10 p.m.)

Budget415

Full coverage: California's state budget crisis
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