Governor Brown, Conference Committee Announce Budget Agreement

Today, Governor Brown and Legislative Leaders announced they had reached an agreement on the 2018-19 Budget. Recall, the Budget Conference Committee had convened for just over a week to hear issues and reconcile differences between the two houses. The budget agreement prioritizes investments in education, the Rainy Day Fund, child care and combatting homeless, and poverty. The Budget Conference Committee is expected to meet today to take actions on their close out agenda.

While we await additional detail that is likely to come through the crafting of the trailer bill and budget bill language, please see the agenda for close-out all items. Key areas of the compromise is noted below. As such, the compromise will:

Revenues/Reserves

  • Adopt the Governor’s May Revision revenues, adjusted to reflect updated property tax growth rates, compared to those proposed by the Legislature which would have resulted in roughly $3 billion in additional revenues than projected in the May Revise.
  • Fully fund the Rainy Day Fund.
  • Deposit $200 million into a new Safety Net Reserve with trailer bill language.

Health Care Coverage Expansion and Affordability

  • Approve $60 million one-time General Fund and trailer bill to implement an all payers claims database to collect costs data and increase transparency.
  • Approve $5 million one-time General Fund to establish a task force and trailer bill establishing an intent to accomplish universal coverage and a unified publicly financed health care system.
  • Deny proposals to expand Medi-Cal eligibility, premium assistance, and tax credits.

Public Health

  • Approve $8 million ongoing, trailer bill, and budget bill language to expand the Black Infant Health Program.
  • Approve $2 million one-time General Fund and budget bill language for STD prevention, in lieu of the $10 million originally adopted by the Assembly.
  • Approve $8 million one-time General Fund for Valley Fever outreach and research.
  • Approve a continuous appropriation for Proposition 56 funds in CDPH.

Homelessness

  • Adopt $500 million one-time General Fund for local governments to respond to homelessness.

As a reminder, the Legislature must pass the budget by the Constitutional deadline, which is next Friday, June 15. Since bills must be in print at least 72 hours before taking action, we anticipate trailer bill and budget bill language early next week.