February 26,
2013
GOVERNOR’S
BUDGET FOR 2013–14
On January 10, 2013, Governor Edmund G. Brown Jr. released his proposed
budget for the 2013–14 fiscal year. This letter, prepared by the California
Department of Education (CDE), provides information on the Governor’s proposals
that affect K–12 education and child development programs.
Copies of this document, as well as other budget-related documents, are available
through the CDE Education Budget Web page at http://www.cde.ca.gov/fg/fr/eb/.
Official state budget documents, including proposed trailer bill language, are
available through the Department of Finance Web site at http://www.dof.ca.gov.
The budget bills are Assembly Bill (AB) 73 and Senate Bill (SB) 65.
Overview
The 2013–14 Governor’s Budget reflects a significant improvement in the
state’s finances due to the economic recovery and voter approval in the
November 2012 election of temporary increases in sales and use tax and personal
income tax (Proposition 30) as well as increased corporate income taxes for
multistate businesses (Proposition 39). The Governor’s budget summary document
indicates that economic recovery has begun and provides a plan to reduce the
“wall of debt” the state has accumulated after years of deficits.
For the first time since 2008–09, the state does not face a
multi-billion-dollar deficit. The Governor’s budget projects General Fund (GF)
revenues and transfers of $98.5 billion and proposes $97.7 billion in GF
expenditures. These budget figures include an estimated $1 billion reserve and
would result in an $851 million operating surplus at the end of 2013–14.
Including all fund sources, the spending plan proposes $138.6 billion in GF and
special fund expenditures, up 4.5 percent from 2012–13.
