Governor Jerry Brown’s budget proposal for 2014-15 increases school funding levels by $10 billion thanks to taxes on capital gains during a stock market comeback.
But Brown also said the state was not yet “out of the wilderness” when it comes to the budget.
The spending plan allocates $11 billion to pay down debt from borrowing to cover previous budget deficits and he said there are other liabilities that the state must deal with including the under-funded State Teachers Retirement System.
There was money to restore some cuts that were made during the recession, but some critics say health and human services cuts were not fully restored.
Still the governor said it was a far cry from when he returned to office several years ago when the state was $27 billion in the hole. The recovering economy and a temporary sales tax increase help allow the governor to expand his budget proposal, which will be the subject of legislative scrutiny in the coming months.
He says he plans to resist efforts to spend the surplus of revenues on pet projects because the new revenues aren’t sustainable.