EXECUTIVE ORDER B-20-12
WHEREAS after accounting for lower tax revenues and updated spending projections, the state’s budget deficit is projected to be $15.7 billion; and
WHEREAS balancing the budget and rebuilding a modest reserve of $1 billion requires total solutions of $16.7 billion; and
WHEREAS lower than expected tax revenues of $4.3 billion are forecast in the current and next fiscal years; and
WHEREAS the pace of California’s economic recovery remains uncertain and California continues to confront serious budgetary problems; and
WHEREAS the State’s current budget problem is exacerbated by debt that includes outstanding budgetary borrowing of $33 billion; 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, 2012, to transfer a sum equal to 3 percent of the estimated amount of General Fund revenues for the 2012-13 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 by September 30, 2012, is estimated to be approximately $2.9 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, 2012; 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, 2012, 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 30th day of May 2012.
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EDMUND G. BROWN JR.
Governor of California
ATTEST:
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DEBRA BOWEN
Secretary of State