Consistent with Brown's record of presiding over record spending while simultaneously urging restraint, Brown's message to the Legislature stressed the inevitability of a recession in the near future and the importance of preparing for it.
Brown said that in the past the state has experienced 10 recessions since World War Two and we must be prepared for the next one. "Let's not blow it now".
Brown must sign a budget by June 30, giving him and lawmakers about five months to negotiate on spending priorities.
But with growing uncertainty about the impacts of new federal policies, combined with a longer-than-average economic expansion, the budget continues to bank higher revenues into reserves and pay down debts and liabilities.
"Fortunately, we haven't hit that recession yet, but we will", Brown told reporters to explain why he wants to use the extra money mostly to fatten the state's "rainy day" reserve, raising it to $13.5 billion.
USA lauds India's biz power, slams terror
And we are working closely with India and our worldwide partners to secure India's membership in the Nuclear Suppliers Group", he said.
Given the way California now collects taxes, Brown said the state must rely on a budget surplus rainy day fund for dips in the economy. Brown's budget propounded $131.7 billion in prevalent fund revenue. Brown's Local Control Funding Formula increased funding for districts with disproportionate numbers of English-language learners, foster students and students from impoverished families to help them all have better chances at leading successful lives. The state's budget has grown 45 percent since 2011, when he took office facing a $25 billion deficit. While spending has increased sharply, from $130.9 billion in 2011-12 to a proposed $190.3 billion for 2018-19, it has actually dropped fractionally in relation to personal income. "It's our responsibility to bring the campus to them, and we can do that through a fully online college". The online college would provide a new affordable pathway to higher wages through credentials for those who don't now access the California community college system.
Jerry Brown holds a budget chart as he discusses his proposed 2016-17 state budget at a news conference in Sacramento, Calif. Local governments and school districts, meanwhile, have been drawing attention to their rising expenses on pensions, complaining that the costs are "crowding out" their ability to fund public services. Included in the community colleges budget increase is $46 million for the first year of implementation for Assembly Bill 19, which allows colleges to waive tuition for first-time, full-time students. "Lately, it's been between 1 and 3 percent". The UC plans to add 2,000 additional undergraduate students in fall 2018 and requested funding support to add 500 more graduate students. It also uses revenue from California's recently-increased tobacco tax to boost pay for home-health providers.
The budget reflects the first full year of funding under the Road Repair and Accountability Act of 2017 (Senate Bill 1), which provides stable, long-term funding for both state and local transportation infrastructure.
"The good news is that California now has a substantial budget surplus", said Assemblyman Jay Obernolte, R-Hesperia, vice-chairman of the Assembly Budget Committee. Cities and towns will see significantly more money in their coffers - $2.7 billion compared to $1.6 billion previous year - to pay for local street and road repairs, thanks to the gas tax.
- Making key investments in trade and commute corridors to support continued economic growth and implement a sustainable freight strategy ($556 million).