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September 1, 1997 - Federal welfare reform replaced the Aid to Families with Dependent Children (AFDC) program with the Temporary Assistance for Needy Families (TANF) block grant program.
September 1, 1997 - Since 1995, the state of California has been at odds with the U.S. Department of Education (USDE) over special education services for eligible inmates in state prisons. The dispute has threatened receipt of federal funds for special education programs in California's public schools as we indicated in our Analysis of the 1997-98 Budget Bill (see page D-89). Despite the recent approval of changes in federal law by the Congress and the President, which Californians believed would resolve the state-federal conflict, the USDE continues to assert that California is out of compliance. This could place more than $300 million in federal funds for special education in California's public schools at risk.
July 17, 1997 - The House and Senate budget reconciliation bills currently pending in Congress both provide additional funds for the states to expand health care coverage for low-income children. The Senate bill authorizes expansion to cover children in families with incomes up to 200 percent of the federal poverty level, while the House bill allows coverage in families with incomes up to 300 percent of the poverty level. Both bills require a state match, but at a lower matching rate than under the Medi-Cal Program.
June 18, 1997 - The Legislature is considering several proposals to reduce the amount of property taxes permanently shifted from cities, counties, and special districts in the early 1990s. We examine these property tax shift relief proposals, comparing options that would cost the state greatly differing amounts.
May 19, 1997 - Sharply improving revenues, combined with large caseload-related budget savings, have enabled the administration to propose significant funding increases in the areas of K-12 education, welfare reform, and local government fiscal relief.
May 1, 1997 - The administration is scheduled to release the May Revision to its January budget proposal for 1997-98 on May 14. The updated budget plan released each year in May traditionally contains revised revenue and expenditure assumptions reflecting such factors as economic developments and adjusted caseload projections. In this update we highlight some of the key non-policy-related factors that will affect the 1997 May Revision.
April 1, 1997 - Current economic and revenue trends appear to be running ahead of the January budget forecast. Employment and personal income continue to expand moderately and General Fund revenues through March were up $305 million from the forecast. However, nearly one-third of 1996-97 revenues come in during the last three months of the fiscal year, and the current-year revenue picture will be highly dependent on developments over the next several weeks. Of particular significance will be the magnitude of final personal income tax payments and· refunds that were due April 15 and will be processed during the next few weeks.