My Budget Priority – May 2018

It’s spring; and in Sacramento there’s plenty to be happy about – we have a robust economy boosting the state’s coffers, new proposals to boost funding for critical services, and significant savings to put into our rainy day fund. These are undoubtedly all good things, and they lay the groundwork for a more stable future for California, but are we truly focused on sustainability? Are we investing in programs and projects that will continue to deliver economic benefits down the line?

When I last updated you on the budget, shortly after the initial proposal was released in early January, the fiscal theme of the year was clear – prudence. I am happy to report that in the latest release of the governor’s proposed budget, the “May Revision,” fiduciary prescience still forms the centerpiece from which the rest of the budget is built. In fact, this latest version of the budget has proposed an even more ambitious goal of having our state’s reserves reach their constitutional max of $17 billion, which is roughly 12.4% of the state General Fund Spending. This number would constitute the largest reserve in modern California budgeting history.

Revenues are certainly rosier. The governor now expects an $8.8 billion surplus, up from the $6.1 billion surplus projected at the beginning of the year. It’s a welcome change from the grim budget picture just a decade ago. Having been a Glendale City Councilmember during the recession, I know for a fact that it is always better to tighten up when times are good so that there is a lot less pain when times are bad. I also know that when you are at a peak a valley will inevitably follow; that being said, there are times when spending is important, particularly when that spending is an investment that will pay off in the future.

As policymakers, the choices we make over the next month as we develop the 2018-19 budget can chart a path for ongoing growth. If we invest our resources wisely, including today’s surplus, we have the potential to see dividends in the future. The good news is we have the research to guide us in making the right choice. Studies have shown that investments in education have an ongoing positive economic impact. It’s time to take the steps that demonstrate our commitment to sustainable growth and invest in the future of our children. It’s time to fully fund higher education with true accountability so we don’t see a boost in state funding only to have that positive step erased by a tuition increase that hits students and their families and pushes a degree farther out of reach.

Back in January, the University of California Regents proposed a 2.7% tuition increase for in-state students. Their argument seems to be that a tuition increase is necessary because, over the past few years, state funding to the UC system has continued to decline, or at least not return to pre-recession levels. Since the 1990s, per student funding for the UC’s has been in an almost constant downward trend. This is while cost of living, tuition and books have all skyrocketed – as did the importance of a college degree for nearly any career in every field. For many UC students, the economic situation is dire. One of the fastest growing crises for students across our state is one many of you would not expect: food insecurity. Against the rising cost of college, relatively stagnant wage growth, and a labor market that often requires an advanced degree for what used to be entry-level jobs, more and more students are going hungry in an effort to keep up. I think we can all agree that this is not, under any condition, acceptable.

Today’s college students are our future’s labor force. It is important, not only morally but also economically, that all students have access to a quality education as well as the resources and basic necessities they need to thrive in their education. For this reason, while I will be standing by the governor’s vision of fully filling our reserves, I will also be fighting to prioritize UC funding with solid accountability to ensure that our investment goes to students. I will be actively advocating for funding that will freeze or reduce tuition increases as well as funding that will ensure no college student goes hungry.

What do you think of the governor’s budget this year? What would be your priorities? I greatly appreciated all the input I received in response to my last article about the budget; your thoughts and ideas are always welcome. Please feel free to contact me through my District Office with you thoughts, concerns or ideas at (818) 558-3043.

Laura Friedman represents Burbank, Glendale, La Cañada Flintridge, La Crescenta, Montrose, and the Los Angeles neighborhoods of Atwater Village, East Hollywood, Franklin Hills, Hollywood Hills, Los Feliz, and Silver Lake.

  laura friedman