— The Brown administration is projecting California will raise $97.2 billion in revenue for the fiscal year that starts July 1. The bulk of that — $60.8 billion — is expected to come from personal income taxes. The governor will not spend all of that revenue but will set some of it aside in a $1.1 billion reserve fund for unanticipated expenses.
While the administration is projecting double-digit increases in sales and corporate tax collections next fiscal year, Brown is taking a conservative view by projecting a 5 percent drop in personal income tax collections.
— $96.4 billion is the general fund amount Gov. Jerry Brown is proposing for the fiscal year that starts July 1. It is lower than the $97.6 billion budget he proposed in January. The $1.2 billion drop is largely a reflection of the governor's more conservative economic outlook for the state. The administration is forecasting personal income growth will be just half the amount forecast for the rest of this fiscal year, from 4.3 percent to 2.2 percent. Brown says the federal budget cuts — called the sequester — and Congress' decision not to extend a 2 percent payroll tax cut is partly to blame.
The general fund is filled largely by the state's three main sources of revenue: personal income, corporate and sales taxes.
— $41.9 billion for special funds. This money is derived from user fees and taxes that must be used for a particular purpose, such as recycling fees allocated for pollution-control efforts. During the recession, the state borrowed heavily from special funds to pay for schools, prisons and universities, functions that normally are paid out of the state's general fund.
—$7.4 billion in bond funds. At various points, voters approved this pot of money largely to finance schools, roads, housing, parks, levees and other infrastructure projects.
— $145.7 billion in total state budget. This is the total the state is projected to spend from general fund, special funds and bond funds.
— Funding for K-12 schools from state and local sources would rise to $50.4 billion in the current fiscal year from $41.8 billion last year, and dip to $49.2 billion in the 2013-14 fiscal year, which starts July 1.
— The budget increases funding in the current school year by $2.8 billion over Brown's January proposal, but overall funding would decline for the 2013-14 school year. That translates to an average of $8,475 per pupil in the current school year, up from $7,175 in 2011-12. The per-pupil spending will dip to $8,221 in 2013-14.
— The new revenue includes $1 billion in one-time money for districts to implement the "common core" standards, which are more rigorous academically and are intended to better prepare students for college and work. The money amounts to about $170 per student, which can be spent as districts choose on teacher training, instructional materials, technology and other uses.
— Brown is proposing to boost his local-control funding formula by $240 million, to $1.9 billion, based on the number of students in districts who are English learners, come from poor families or are foster children. The formula gives more money to school districts with higher proportions of children in those groups but has met resistance from advocates for wealthier districts. Brown defends the proposal as "fair and just."
— The governor's office says school districts will see "a significant infusion of additional cash" this year as the state accelerates repayment of money it owes to schools from previous years. That money will shore up base funding for all schools.
— $500 million increase to the University of California and California State University systems, with additional increases in each of the next four years to make higher education more affordable and more efficient.
— The governor is proposing to reduce local government support for Medicaid by $300 million in 2013-14, $900 million in 2014-15 and $1.3 billion in 2015-16 because the state has opted to expand the program under President Barack Obama's health care reforms. The federal government will pay the entire amount of the expanded coverage from 2014 to 2016, gradually phasing down to a 90 percent share.
County officials and health care advocates say Brown's cuts are too aggressive given that there will still be an estimated 3 million to 4 million uninsured residents requiring indigent care.
"Redirecting too much health care funding will force counties to cut into the safety net services they provide today, including trauma care, emergency services, burn care and public health programs," said Matt Cate, executive director of the California State Association of Counties.
The state has agreed to expand Medicaid, known as Medi-Cal in the state, to some 1.4 million low-income Californians as part of the state's efforts to get ready for the Affordable Care Act, which takes full effect next year.
Brown says the reductions to the county Medicaid grants are justified because the state should not have to pay twice — for providing Medicaid coverage to this new population while maintaining the same level of county support for health care services.
— The Department of Corrections and Rehabilitation's budget would increase slightly, to $9.1 billion, including $8.8 billion from the state's general fund. That's up from $8.9 billion in total spending in the current budget.
The state is sending more inmates to firefighting camps to help comply with a federal court order to reduce overcrowding in the state's 33 adult prisons. It will cost the state an additional $15.4 million to increase the fire camp population from 2,500 to 3,800.
— The prison population is dropping under a two-year-old law that sentenced lower-level offenders to county jails instead of state prisons to comply with the federal court order, but not as quickly as the administration originally projected. Those extra inmates will cost the state an additional $18 million for next fiscal year and the remainder of the current one.
— Brown's budget calls for spending $2.1 billion on inmate health care next fiscal year, an increase of nearly $50 million from the current year. That includes nearly $1.5 billion for medical care and $328 million for mental health services. Problems in those two areas led federal judges to order the state to reduce the prison population as the best way to improve treatment of sick and mentally ill inmates.
— The corrections department would create a third undersecretary in charge of prison health care, to take over after the departure of a federal court-appointed receiver who now controls prison medical care.
CRIMINAL JUSTICE REALIGNMENT
— The governor projects the state will send nearly $6.3 billion to counties for realignment next year, up from more than $5.8 billion during the current budget year.
— California counties could send longer-term inmates to state prisons if they accept the equivalent number of shorter-term inmates in exchange. County sheriffs say their jails are not equipped to handle inmates serving lengthy sentences.
Under Brown's proposal, long-term inmates would have to serve at least three years in county jails before going to state prison. A county, for instance, could send an inmate serving a nine-year sentence to state prison if the county agreed to incarcerate three inmates serving three-year sentences. The trade-off would not increase the state inmate population as California tries to comply with a federal court order to reduce prison overcrowding.
— Judges would be expected to impose what are known as "split sentences," in which jail terms are followed by a period of community supervision, unless the judge finds that the offender should spend the entire sentence in jail.
— County probation departments would be eligible for $72.1 million as incentives if they reduce the number of felony probationers who go to prisons or jail for probation violations or new crimes.