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Budget Update: First 5 Funding Spared … For Now?

Last week, Gov. Jerry Brown vetoed a state budget that included the redirection of $1 billion in First 5 money. However, the funds may still be included as a solution in future budgets.

Last week, the Legislature approved a spending plan that relied on a number of solutions, including the redirection of Proposition 10 funding that currently goes toward local programs serving young children and their families. Although Brown approved the funding grab back in March, he removed it from the budget in his May Revise due to ongoing litigation. First 5 LA and other First 5 county commissions filed lawsuits that are likely to be decided later this year by a Fresno judge.

In early May, an Assembly subcommittee proposed an alternative plan in which First 5 commissions would voluntarily give up $500 million to state programs in exchange for rescinding AB99, the law that takes $1 billion from Proposition 10 Commissions. Although the option was considered by First 5 county commissions, it did not gain support, due in large part to Proposition 10's non-supplantation requirements.

Democrats in the state Legislature passed a majority-vote budget plan after talks with their Republican counterparts failed to yield the two-thirds vote needed to approve a budget with tax extensions, which Brown seeks. Proposition 25, passed by voters in November 2010, allows for a budget plan to be passed by majority vote only if it does not include new revenues.

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