SAN FRANCISCO, Jan 8 (Reuters) - California Governor Jerry Brown’s budget plan will propose $106.8 billion in general fund spending along with $1.6 billion for a rainy day fund, according to a copy of the spending plan obtained by the Sacramento Bee.
Brown’s budget plan proposes $154.9 billion in spending from all state funds, which includes the general fund, special funds and bonds funds, and calls for “fiscal restraint” as “economic expansions do not last forever,” according to the document that the newspaper posted on the Internet.
The Democratic governor had been scheduled to release the document on Friday morning. Reuters was not immediately able to confirm the report. No one in the governor’s office was immediately available to comment.
Brown ended a decade of budget deficits in June by signing a spending plan for the current fiscal year with a surplus to help the state set aside $1.1 billion in reserve.
That followed Brown’s budget plan last January for this fiscal year that projected a modest surplus, in contrast to a projection a few months earlier by the state budget watchdog, the Legislative Analyst’s Office, of a $1.9 billion deficit.
California’s revenue has been on the upswing as its economy gradually improves and since Brown rallied voters in 2012 to approve temporary increases to the state sales tax and personal income tax rates for the wealthy.
Revenue from taxes on the wealthy’s capital gains have figured prominently in the state’s stronger revenue, which the Legislative Analyst’s Office in November said could leave the state with a $2.4 billion reserve for the current fiscal year - more than double the Brown administration’s estimate.
The reserve could climb to $5.6 billion in the next fiscal year assuming the state’s current fiscal policies do not change, the office added.
Brown has been cautioning the legislature, controlled by Democrats, that good times won’t last forever and has urged them to support setting aside money for building a rainy-day fund so the state can better withstand its next revenue slump.