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Brown Budget Proposal Holds Spending Flat

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SACRAMENTO -- Gov. Jerry Brown proposed a $180 billion state budget that holds the line on spending based on a concern that the economic recovery is stalling.

"California is growing, but less than anticipated," said Brown, as he pointed to a chart showing that the state's economic growth was leveling off.

His budget is balanced and increases education spending slightly. It expands health care, seemingly defying the threat that Obamacare will end with the new Trump administration.

There is money supporting the increase in the minimum wage and tax credits for the poor. It once again invites conflict with the Trump administration by continuing cap-and-trade strategies to fight climate change.

The governor also allocates an additional $1 billion to the state reserve, raising it to a whopping $8 billion.

"We have all this money and people want to spend..that's the very time when we have to pull in and provide a budget reserve and build up the rainy day fund," said Brown.

Brown said there is no guarantee that much-talked about changes in policy from the new Trump administration is anything more than political rhetoric, but also said they are some of the uncertainties that could put a "massive hole in our budget expectations."

Brown said the annual revision of his budget in May will address anything that may come from Washington.