CA Budget Update - July 28, 2009 |
| Posted by Rhonda Messamore (rmessamore) on Jul 29 2009 |
The original 2009-2010 Budget allocated $108 million in Proposition 36 programs: $90 million for Proposition 36 specifically, and $18 million for the Offender Treatment Program (OTP). The $90 million in funding for Proposition 36 has been eliminated for the 2009-2010 Budget Year. The $18 million in funding for the OTP continues in the 2009-2010 Budget Year. Additionally, a one-time increase in federal Byrne JAG grants will provide a $50 million augmentation in funding for OTP in the 2009-2010 Budget Year. In total, the funding was reduced by $40 million (from $108 million to $68 million) and was identified to be solely for the OTP to allow the Legislature more control over the policy of the program.
Unfortunately, it appears that we are not yet finished with the 2009-2010 Budget. It is projected that we will again be facing an emergency deficit that will require a second round of amendments to the original budget passed in February. The estimations show that the state will again be in trouble as early as September, although it is projected that negotiations will not begin until November or later. However, given that the majority of the funding is federal – we do have an advantage over other programs in the state budget. Additionally, the research supporting the OTP/Proposition 36 programs shows a cost benefit ratio of 2.5 to 1 (or 2 to 1, depending on the source), which should deter the OTP from continuing to be a target in the budget negotiations because it is proven that those short-term savings will ultimately be twice as costly to the state. That said, the budget negotiations have increasingly become desperate and there is no guarantee that the fact that cuts will be twice as costly later will deter the Legislature and Governor from making those cuts. Repeated education of the benefit (and cost benefit) of the OTP will be necessary as the state’s finances continue to deteriorate.
We will continue to monitor this issue and keep you apprised of any budget developments.
Last changed: Jul 29 2009 at 3:46 PM
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