WHEREAS in March, the Legislature passed several bills cutting government spending by $11 billion; and
WHEREAS even after accounting for those cuts, higher tax revenues, and updated spending projections, the state’s budget deficit remains at $9.6 billion; and
WHEREAS balancing the budget and rebuilding a modest reserve of $1.2 billion still requires that an additional $10.8 billion in revenue solutions be adopted; and
WHEREAS the pace of California’s economic recovery remains uncertain and California continues to confront serious budgetary problems; and
WHEREAS even though higher than expected tax revenues of $2.8 billion are forecast in the current year and $3.5 billion in 2011-12, an election to allow voters to extend temporary taxes is required to generate the revenue needed to balance the budget; and
WHEREAS the State’s current budget problem is exacerbated by $34.7 billion of outstanding budgetary borrowing and $48.2 billion of authorized unsold bonds; and
WHEREAS Section 20(b)(3) of Article XVI of the Constitution of the State of California requires the Controller, no later than September 30, 2011, to transfer a sum equal to 3 percent of the estimated amount of General Fund revenues for the current fiscal year to the Budget Stabilization Account; and
WHEREAS the transfer required by Section 20(b)(3) of Article XVI of the Constitution of the State of California to be made on September 30, 2011, is estimated to be approximately $2.809 billion; and
WHEREAS Section 20(e) of Article XVI of the Constitution of the State of California provides that any transfer from the General Fund to the Budget Stabilization Account may be suspended by an executive order issued no later than June 1, 2011; and
WHEREAS the suspension of the transfer is necessary to alleviate the need for additional program cuts and will not reduce the regularly scheduled payments of the Economic Recovery Bonds.
NOW, THEREFORE, I, EDMUND G. BROWN JR., Governor of the State of California, in accordance with Section 20(e) of Article XVI of the Constitution of the State of California, HEREBY ORDER the suspension of the September 30, 2011, transfer from the General Fund to the Budget Stabilization Account for the purpose of alleviating the need for additional program cuts to address the budget deficit.
IN WITNESS WHEREOF I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 31st day of May 2011.
EDMUND G. BROWN JR.
Governor of California
Secretary of State