Governor Jerry Brown said economic forecasts call for a modest recovery from the recession that has contributed to the state’s budget woes despite presenting a balanced budget for this fiscal year.
Fueled by the Proposition 30 tax increase, the state has collected around $4.6 billion more dollars. Most of the extra money goes to schools and community colleges as required by law.
Money is also set aside for expected Medi-Cal increases and to provide $72 million to pay county probation departments for dealing with offenders who went to prison prior to realignment.
The revised budget set aside $1.1 billion as a reserve and Brown said he does not want to spend it to restore cuts to social services as some in his party wish to do.
“We have climbed out of a hole with a Proposition 30 tax. That’s good. But this is not the time break out the champagne,” said Brown.