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California State University, Long BeachCalifornia State University, Long Beach

2010-11 GOVERNOR’S BUDGET

Powerpoint Presentation

  • Identifies a $19.9 billion budget deficit, consisting of a $6.6 billion shortfall in 2009-10, a $12.3 billion shortfall in 2010-11, and rebuilding the reserve of $1.0 billion
  • Various factors have contributed to budget deficit:
    • Anticipated revenues are lower ($3.4B)
    • Expiration of temporary budget solutions, inability to implement prior solutions, effects of adverse court decisions ($7.2B)
    • Population and caseload growth ($1.4B)
  • Governor has declared a fiscal emergency and has called Legislature into Special Session
  • Budget proposes a combination of spending reductions, alternative funding, fund shifts and additional federal funds to close budget gap
  • If federal flexibility and funding do not materialize, then additional spending reductions, delays in tax cuts and continued suspension and reduction of tax credits must go into effect
  • While the state does not face as serious a cash shortfall as it did 12 months ago, action is necessary this spring to ensure that the state has adequate cash resources