Treasurer Shines a Light on the Trigger

We previously blogged about the budget trigger provision in the 2009-10 budget agreement, which will prevent certain cuts and a tax increase from taking effect if the state gets sufficient federal funds from the economic recovery bill. An initial estimate from the Department of Finance (DOF) indicated that California would not achieve that threshold, but the DOF has not publicly released its methodology. Now the DOF methodology has seen the light of day thanks to State Treasurer Bill Lockyer, who has posted it to his website.

— Scott Graves

One thought on “Treasurer Shines a Light on the Trigger

  1. Many who may need to know may NOT know that if the state does not realize $10 billion in “sufficient funds” or savings from the Stimulus Act that a second SSI/SSP 2.3% cut takes affect July 1 on the maximum allowable SSI rates in CA; the first cut takes effect no matter what happens here on May 1, rolling rates back to what SSI rates were on December 1, 2008.

    “If California receives sufficient federal stimulus funds (as defined by the “trigger language”), then a further 2.3% reduction to the maximum aid payments will be avoided on July 1, 2009.” Reliable CA HHSA source

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