Palmer, a spokesman for the Department of Finance. Brown's deficit projection was driven by more than just the accounting error, Palmer said, noting that California tax collections came in below expectations for most of the first half of the fiscal year. The massive hole in the Medi-Cal budget surprised state lawmakers. Those funds have helped the state add more than 3. Jan 10, 2:
Jan 10, 2: The governor's budget also offers less than expected for backers of Proposition 56, last year's tobacco tax increase earmarked to boost healthcare funding. He also offered national leaders some advice as they weigh the merits of various federal subsidies. Jerry Brown on Jan. Making up for the Medi-Cal shortfall will mean the state can't spend money on other priorities, such as college scholarships or paying down long-term pension liabilities, Moorlach said. One key source of early criticism, though, was his plan to phase out the scholarships offered to middle-class students attending University of California and Cal State campuses. The budget proposes to renew scholarships for 37, current recipients but offers no new assistance beyond that. Democrats, in general, sounded positive notes about the governor's proposal. The administration discovered accounting mistakes last fall, but it did not notify lawmakers until the administration included adjustments to make up for the errors in Brown's budget proposal last week. Palmer, a spokesman for the Department of Finance. That cap-and-trade program faces an uncertain future beyond , as business groups have challenged its legality in court. The state also miscalculated costs for the Coordinated Care Initiative, an experimental program in seven counties to improve care for a group of high-needs patients eligible for both Medi-Cal and Medicare, the federally funded health plan for seniors and people with disabilities. The Medi-Cal program, California's version of Medicaid, is jointly funded by the state and federal governments to provide health coverage for people with low incomes. When something like this happens, the trust factor gets eroded, and you lose confidence in what's being provided to you," said Sen. Advertisement "This is just a very conservative budget that really doesn't do anything to reduce poverty in the state of California," said Mike Herald of the Western Center on Law and Poverty, who pointed to a lack of new money for welfare assistance efforts or affordable housing. About a sixth of the money comes from the state general fund and most of the rest from the federal government. The governor's fiscal blueprint is the ceremonial first pitch in Sacramento's annual budget writing season, and, as such, the details will shift in coming months to address changing fiscal conditions. The agency followed its normal practice by waiting to report the errors in the governor's next budget, he said. Those funds have helped the state add more than 3. Brown's deficit projection was driven by more than just the accounting error, Palmer said, noting that California tax collections came in below expectations for most of the first half of the fiscal year. The massive hole in the Medi-Cal budget surprised state lawmakers. The initiative's accounting problems did not affect the administration's finding that the program should be eliminated, Palmer said. They also reduced expectations for sales and corporate taxes because of broader national trends.
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