Extra Money Goes to Schools
On Monday, Governor Jerry Brown stated that although the economy is on the mend, there is still a $10 billion budget hole that needs to be closed by tax extensions. He also stated that tax revenue would be $6.6 billion more than expected. Brown proposed to use the extra tax revenue to lessen his tax hike proposal and increase K-12 school funding by $3 billion. Brown also state he is confidant that he can reach a budget agreement with republicans by the due date of the spending plan in June. There are no changes to UC or California State budget, but Brown warns that if the tax extension does not pass, each would face an additional $500 million cut.
Cal State prepares radical plan
On Tuesday officials from the California State University that they are considering a radical plan including huge tuition hikes and enrollment reductions in response to potentially receiving a $1 billion budget cut from the state. Brown warned the state that if the tax extensions do not pass, an additional $500 million slash to state funding would be added, doubling the cuts the Cal State is facing. If this happens the tuition for undergraduates would rise 42% next year, instead of the 10% already planned. Cal state may also use waiting lists for winter and spring enrollment next year until the budget cuts are finalized.
Read more about the plans here: http://articles.latimes.com/2011/may/11/local/la-me-0511-calstate-20110511