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Governor Introduces 2013-14 Budget
Jan 11, 2013
Governor Jerry Brown released his 2013-14 budget yesterday.
Governor Jerry Brown released his 2013-14 budget yesterday. In his statement, the governor says he has “proposed a balanced state budget that boosts investment in education, implements health care reform and keeps California on a long-term path to fiscal stability. This budget builds on the work of the last two years to eliminate the ongoing deficit.” “The budget cuts made in the last two years and the passage of Proposition 30 make it possible to both live within our means and to increase funding for education,” said Governor Brown.
The Governor’s budget also highlights the contribution made by the insurance premium tax. According the budget, in 2011, $120.2 billion in taxable premiums were reported, representing an increase of 5 percent from 2010. The most recent estimates indicate that total premiums will increase by 2 percent and 2.8 percent in 2012 and 2013, respectively. Estimates also project a 10.6 percent and 6.4 percent growth for taxable premiums from workers’ compensation insurance in 2012 and 2013 respectively. The primary reason for the decline in the Insurance Tax revenue estimate from 2011-12 to 2012-13 is refunds that are expected to be paid pursuant to a Board of Equalization decision in the California Automobile Insurance Company case. The California Department of Insurance estimates that the refunds resulting from this decision will equal $233 million in 2012-13 and $149 million in 2013-14.
The budget also includes an increase of $152.9 million in the Workers’ Compensation Administration Revolving Fund and 82 positions to implement the workers’ compensation reforms passed in SB 863. The majority of the increase includes $120 million for permanent disability payments as part of the Special Earnings Loss Supplement program, also known as the return-to-work program. These resources will “support the reforms to medical provider networks, workers’ compensation liens, fee schedules, medical care administrative procedures, permanent disability benefits, the Special Earnings Loss Supplement program, and independent medical and bill review processes.”
The Department of Insurance is requesting $237.4 million for the 2013-2014 budget year. This is an increase of $14.2 million over the current budget.
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