Gov. Brown: State Deficit Has Been Erased

Gov. Brown says budget deficit is gone 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 voters' 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.”

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.

Ed Sorrels January 10, 2013 at 11:33 PM
What an absolute insane crock of c--p ! Let's just wait 6 or 8 month's into this NEW Balanced Bidget and see who is broke, Needs money or some group will suffer and die if we don't approve just a little bit of deficet spending, A balanced Budget is a fairy tale to make those people that voted for prop. 30 feel; good about what they have done, Which was to extend unchecked spending for another year not a reduction in the cost of Govt. just continue on the same path to ruin !
Libi Uremovic January 11, 2013 at 01:45 AM
if the deficit is gone with a wink of an eye then let's start closing down some of the taxes...
Salinde January 11, 2013 at 03:30 PM
His budget is all based on conjecture. He is counting revenue that has yet to materialize from the tax increases. Also, the Federal Government recently denied that State money because it failed to meet the requirements set forth in 'no child left behind' this was 100's of millions of dollars because the State wont hold teachers accountable. Buisnesses are leaving the State at an alarming rate, and soon the State will be required to pick up the tab for Health Insurance for everyone in the State.
Mark January 11, 2013 at 08:42 PM
15 minutes, 15 hours, 15 days, or 15 weeks. We will need new taxes buy the time we vote again because we will be broke...


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