Brown, a Democrat who is leaving office next January after four
non-consecutive terms, has positioned the state as a bulwark
against the conservative policies of Republican U.S. President
Donald Trump. The governor's proposal is expected to reflect
that by funding programs to combat climate change, shore up
health care services and other efforts.
The 2018-2019 budget will include anticipated taxes on sales of
marijuana, which became legal for recreational use Jan. 1,
estimated to eventually reach $1 billion.
The estimated budget surplus of $7.5 billion is a far cry from
the $27 billion hole that was projected as Brown took the reins
for his third term in January 2011. He had previously served as
governor from 1975 to 1983.
State Senator Phil Ting, a Democrat from San Francisco and the
chairman of the senate budget committee, is urging the governor
to sock away $3.2 billion of that in the state's rainy day fund
and use the rest on education, health care and other needs. The
legislature's majority Democrats will push the governor to fund
universal pre-school for all children age four and up and also
expand the state's earned income tax credit for the poor, he
said in a telephone interview.
For the current fiscal year, the state budget topped $125
billion in general fund spending and nearing $200 billion when
funds from the federal government, bond sales and other sources
are considered, state records show. California has the
sixth-largest economy in the world and is the most populous U.S.
state, spending $53 billion from its general fund budget for
K-12 education, $15 billion for state colleges and universities,
and $35 billion for health and human services in fiscal year
2017-2018.
Brown, who worries about the state taking a hit in a future
recession, is likely to resist some spending proposals in favor
of paying down debt. But his choices are expected to reflect his
priorities, including efforts to slow climate change,
improvements for infrastructure and better funding for
education.
The plan is likely to change as lawmakers battle for pet causes
and the state's revenues are recalculated before the next fiscal
year begins in July.
(Reporting by Sharon Bernstein in Sacramento and Robin Respaut
in San Francisco; Editing by Lisa Shumaker)
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