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Governor Unveils Balanced Budget

Gov. Brown says budget deficit has been erased as he allots more money for schools and colleges

Gov. Jerry Brown unveiled a state budget for next fiscal year that is balanced and allocates more money for education.

According to the Sacramento Bee, Brown's $97 billion proposed budget for 2013-2014 has a $1 billion reserve, leading the governor to declare the state budget deficit has disappeared for the first time since the recession began.

A legislative analyst last fall had projected a $1.9 billion deficit, despite the approval in November of an income tax hike on high earners and a temporary hike in the sales tax.

An improving economy and higher tax revenues have erased that deficit.

Spending in the governor's 2013 budget would rise by 5 percent over the 2012-2013 budget, according to a Reuters report.

Nonetheless, the governor cautioned California cannot go back to previous spending levels. For example, Brown said he is unwilling to restore funding for some social programs that have been cut in recent years.

"It is best to maintain a very solid budget and a good reserve... or we'll go back to the boom and bust, borrow and spend," Brown was quoted by the Bee as saying.

The governor does recommend adding $125 million to both the state university and the state college system. As part of that, Brown wants colleges and universities to cap the number of classes students can take.

The governor also is recommending an additional $2.7 billion for local schools and community colleges, increasing the total education budget to $56 billion, the Bee reported.

As part of that extra funding, Brown is asking for a financial overhaul of the California school system, according to the Bee.

State Superintendent Tom Torlakson said he believes the governor is on the right track.

“The governor’s budget proposal keeps the promise we made to Californians who supported Proposition 30 and wisely begins to restore some of what our schools have lost. It will take years to bring our education system back to financial health and I applaud the governor for beginning that work in earnest," said Torlakson.

He added, “I admire the governor’s determination to move forward with an overhaul of California’s confusing system of school finance and I share his desire to direct more help to students and schools with the greatest needs. At the same time, I remain concerned about the fragile fiscal state of so many school districts and preserving state priorities. I look forward to examining details of the governor’s proposal and working closely with the education community throughout this challenging process.”

State Sen. Mark DeSaulnier (D-Concord), who represents the San Ramon and Tri-Valley areas, said he supports the governor's plan.

“Governor Brown’s announcement today of a budget with a surplus and increases in public education spending is a welcome sign of our state’s improving fiscal status,” Senator Mark DeSaulnier said. “I have seen first hand as Democratic legislators have voted to make tough cuts to restore fiscal order. With our budget deficit closed, it is time to begin reinvesting in the most vital programs in our state, paying down our debt, and continuing to rebuild a stronger post-recession California. As we begin to pay down our debt and reinvest in critical programs, we must do so in a strategic and thoughtful manner. Governmental oversight and keeping a vigilant eye on spending must remain top priorities. I agree with the governor’s view that 2013 should be a year of fiscal discipline and living within our means.”

The state Legislature still has to approve the governor's budget plan. Democrats now have two-third majorities in both the Assembly and state Senate.

The budget takes effect July 1.

You can see the entire budget proposal on the state financial office's website here.

Nick January 11, 2013 at 09:25 PM
He promised pension reform and we got nothing. Too many votes at stake? Come on, we have to solve this HUGE issue. My SSI is delayed, reduced and called entitlement, I paid into it all my working life! If my 401k loses money it is my problem. A state employee can retire much younger than me and get all of their pay, or a good chunk, it is a guarantee. Come on Jerry! Where I worked they froze the pension plan for everyone and moved to a 401k plan, it can be done! We will get our pensions earned to that date but no more, the company could not afford the system. Taxpayers can not afford the current pension system.
John Jay January 12, 2013 at 05:15 PM
Based all that I know about CA's finances, this article just have me laughing my all off. The sheeple of CA better not smoke this stuff.
Beau Hunk January 12, 2013 at 05:36 PM
So it comes out this morning that Moonbeam used fancy accounting tricks and false assumptions to "balance" the budget. No surprise there. http://www.contracostatimes.com/california-budget/ci_22358509/
Paisley January 12, 2013 at 11:13 PM
Thanks for the link. 1 billion wouldn't pay off one 10th of what we owe to the unemployment trust fund. A handful of years ago you would be considered a nutbag if you called this economy a socialist one. Now you guys are the nutbags if you don't realize that's what it is. The economy wouldn't even be growing at all if it weren't for the 80 billion every single month the government spends to prop up the economy. For four years this has been going on. And there is no end in sight. They've already announce more QE for 2013. Hard working law abiding citizens are penalized over the takers. Government workers are preferred over private sector workers. There is absolutely no growth plan that doesn't involve taxation. I am not a student of socialism, but it sounds pretty textbook to me. The sad thing is socialism crushes poor people. Yet they still stay willfully ignorant. The next 4 years will be really hard watching the suffering, yet this is what you people voted for. Socialism makes everyone poorer. Not just rich people.
Voter with an ID January 14, 2013 at 04:55 AM
Your title to the article above should have the word 'Balanced' in quotes, since the dems are using the same smoke and mirrors and kicking the can down the road when it comes to bill paying and budgeting. They have no one to blame but themselves...

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