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California Legislative Update: Governor Brown Releases May Revision

Branché Jones

May 12, 2017


The Governor has released his May Revision, which is an update to the budget that he introduced in January. This new “budget” takes into account tax receipts and revenue projections that the administration has assumed. With revenues up slightly, the revision has several major changes. Below are some of the highlights:

  • Dollars to fund the minimum wage increase to $11 in 2018
  • Expansion of health care coverage to undocumented children
  • Providing dental benefits to adults covered by Medi‐Cal
  • The first cost‐of‐living adjustment for Supplemental Security Income/State Supplementary Payment (SSI/SSP) recipients since 2005
  • California’s first‐ever Earned Income Tax Credit to help the poorest working families

For education specifically, the May Revision will increase funding for the Local Control Funding Formula by $661 million. That is added to the $770 million included in the January budget proposal to bring the additional funds going to the Local Control Funding Formula this year to almost $1.4 billion. This money will go out on an ADA basis and be very flexible in terms of what it can be used for. The Governor has also reinstated the three year “deal” with the early education community that he suspended in his January budget. This means that early education will see an increase of $500 million to fund an increase in the standard reimbursement rate and the regional market rate, as well as funding for an additional 2,959 slots for full day preschool.
The legislature is beginning hearings on the Governor’s May Revision. Budget subcommittees in both houses of the legislature will hear and vote on the measures and advance them to the full Budget Committees so that the final budget can be approved by June 15th.
To see the full text of the Governor’s May Revision go to the state’s budget page on their website.

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