August 9, 2010

Last week, the Legislature’s Budget Conference Committee closed out their actions by adopting the recently unveiled Democratic budget plan.

The Democratic budget plan unveiled earlier in the week by Senate pro Tempore Darrell Steinberg and Assembly Speaker John Perez provides a balanced approach, including new revenues, to address the structural budget deficit that has plagued California since Governor Schwarzenegger took office.  The Democratic plan recognizes that the Governor’s “cuts only” approach to our budget deficit hinders rather than helps economic recovery in California and places undue pressure on working families in California.

Congress Passes Education Jobs Fund and Extends Federal Medical Assistance Funding (FMAP)

Today the House of Representatives passed HR 1586, a $26.1 billion bill that will help preserve education jobs and help states pay for medical care -- $10 billion to prevent layoffs of school employees, as well as $16.1 billion in Medicaid help to the states.

The legislation appropriates $10 billion for a new Education Jobs Fund, through which the Education Department would provide aid to local school districts to prevent layoffs in elementary and secondary schools. California’s projected allocation is $1.2 billion. The measure requires the department, within 45 days of the measure's enactment, to allocate funding to states that have submitted applications for funding. If a state does not submit an application within 30 days of enactment, the measure allows the department to award funding directly to entities within the state.