Homelessness and rainy days

Nothing good lasts forever. That was the familiar message reverberating from Gov. Jerry Brown on Friday (May 11) as he unveiled his updated version of the 2018-19 state budget. California’s strong economy is not going to last, and Brown says he is doing everything he can to safeguard against the next recession.

“Let’s not blow it now. We worked too hard for that,” Brown said.

What that translates to is saving more and spending less on programs that come with ongoing costs. Instead, Brown proposes using this year’s higher-than-expected revenue toward one-time spending—using it to address homelessness and mental health and improve infrastructure at universities, state buildings and courts.

In January, the governor presented a proposed budget that included a $6.1 billion expected surplus. Now that surplus has grown to about $8.8 billion, thanks to big boosts from personal income and corporate taxes. Brown said he is committed to depositing most of it into reserves and the state’s Rainy Day Fund, which will have a balance of $9.4 billion at the end of this fiscal year.

As usual, much of the state’s total budget of $199.3 billion will pay for education and health care, which have seen increases since the last recession. The budget proposes spending an additional $4,600 per student compared to spending in 2011-12, which would bring the annual amount the state spends per pupil to $11,628.

The proposed budget leaves about $4 billion toward one-time expenditures in three areas.

Half of that would go to deferred maintenance—money for universities, the state and courts to pay for upkeep on buildings, equipment and levee repairs. The state has a huge backlog of infrastructure needs with a price tag of $20 billion, said Michael Cohen, the state’s finance director.

Brown also proposes distributing $359 million to help local governments combat homelessness, including $50 million for services for people with mental illness.

His proposed budget also adds another $312 million to develop better early detection of mental health illnesses, and education for mental health professionals, with a focus on psychiatry.

Other priorities he’s carved out include an additional $96 million for wildfire prevention efforts such as thinning forests, $134 million for voting equipment and $16 million for earthquake early warning systems.

Brown’s so-called “May revise” is just one more pulse point on the way to a final state budget. Democratic legislative leaders now have several weeks to try to squeeze in more funding for health care, education, housing and other asks before the state’s June 30 deadline to put a new budget in place.

Their wish list includes a broader expansion of various health benefits for people lacking sufficient coverage. One controversial item: health coverage for all undocumented immigrants living in California. In 2015, California approved legislation to cover undocumented children and allow them to enroll in Medi-Cal, the state’s health care program for poor people.

Assemblyman Phil Ting, the San Francisco Democrat who chairs the Assembly Budget Committee, applauded Brown’s commitments toward homelessness but wants to allocate more for health coverage and higher education.

“When we craft a spending plan that addresses these issues, we make our state stronger and build a brighter future with opportunity for all—while still saving for a rainy day,” Ting said in a statement.

Some don’t think the surplus belongs to the state at all. State Sen. Ted Gaines, an El Dorado Hills Republican, thinks a refund to the taxpayers is in order.

“This is Gov. Brown’s last budget and thankfully so. He’s spent eight years talking about fiscal discipline and prudence while supporting new taxes, fees and spending at every turn,” Gaines said. “He’s leaving behind a legacy of poverty, massive homelessness, and if he keeps this surplus, theft.”

Of course, Republicans have no real influence on the final budget. The Legislature can approve its version with only a simple majority, so the Democrats who dominate both chambers are in control.