California's 2013-14 Budget: Brown Turns the Tide

Abstract

Unlike his first two years, Governor Jerry Brown began this budget cycle from a position of immense political strength. The Democrats controlled a two-thirds supermajority in both chambers of the California Legislature, allowing them to increase taxes without a single Republican vote. In addition, voters passed Propositions 30 and 39 in November 2012, adding several billion in state revenue. With an improving economy, the state also collected billions more taxes than initially projected.The improved economic and political situations gave Brown and the legislative Democrats the opportunity to broaden the debate over the 2013-2014 budget. Since Republicans were unable to hold up a budget or even prevent tax increases, the fight shifted from getting a budget passed to passing the transformative budget Brown had wanted to implement since his election in 2010. The centerpiece of this new endeavor was a massive restructuring of state money for K-14 education. In addition, Brown wanted to continue paying down the "Wall of Debt," or the nearly $30 billion the state had accumulated over its previous borrowing spree.Sequestration had a minimum effect on California's economy or state budget. The larger fear was long-term federal budget cuts, particularly defense and academic research, both major jobgenerators in California.