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Office of the Chancellor / Public Affairs
Monday, August 4, 2003
 

Sacramento Bee 8-3-03

Budget highlights

 


Highlights of the $99.1 billion state budget signed Saturday by Gov. Gray Davis:
* Assumes tripling of vehicle license fee.


* Includes $10.7 billion in bonds to pay part of the deficit.
* Dedicates a half-cent of existing sales tax to repay debt over five years, beginning in 2004-05.

* Retains cost-of-living increases for aged, blind and disabled people in June but suspends raise scheduled for January.

* Assumes state employee layoffs or 10 percent pay cuts to save $1.07 billion.

* Eliminates tax credit for manufacturers.

* Eliminates Trade and Technology Agency and Office of Criminal Justice Planning.

* Relies on $2.2 billion in federal funds.

* Saves $349 million in child-care programs by restricting eligibility, reducing reimbursement rates and relying more on federal funds.

* Increases fees at community colleges and assumes fee increases at the University of California and California State University systems; delays opening of UC Merced.

* Requires a one-time transfer of $135 million from redevelopment agencies to schools.

* Reduces by 5 percent Medi-Cal reimbursement rates to providers.

* Delays for up to six years more than $1.3 billion in transportation projects.

* Generates $120 million by raising a variety of fees for energy, environmental protection and resources programs.

* Reduces funding for the California Arts Council to $1 million, a fraction of the $19.6 million it got last year.

Sources: Legislative Analyst's Office, California Legislature