Gov. Brown to Release New State Budget in San Diego Today

Gov. Jerry Brown is scheduled to release revisions to his proposed state budget today and hold a series of news conferences, including in San Diego.

According to the governor's office, the spending plan for the fiscal year that begins July 1 will include a "rainy day fund" for California that would go on the November ballot. The governor reached an agreement on the reserves plan last week with Democrats and Republicans in the Legislature.

"There's nothing complicated about the idea of saving money and exercising fiscal restraint, but it's not always easy to do," Brown said. "Democrats and Republicans have come together to create a rainy day fund that ensures we're not only saving for the next downturn, but also paying off our debt."

The governor's office said the deal would, if passed by voters:

• require the state to bank large increases in capital gains revenues, which are the most volatile form of tax income;
• require supplemental payments to accelerate payoffs of the state's debts and liabilities;
• raise the maximum size of the rainy day fund to 10 percent of general fund revenues;
• allow transfers to be suspended and withdrawals to be made from the fund when needed during recessions, within prescribed limits; and
• create a reserve account for education to smooth school spending and avoid future cuts.

The proposed state spending plan totals $155 billion, which would increase funding to K-12 schools and community colleges, and provide more money to the University of California and California State University systems -- as long as they don't increase student tuition and fees.

California has about $355 billion in long-term liabilities, including $217.8 billion in unfunded pension costs to retired state employees and $64.6 billion in deferred maintenance, according to data provided by the governor's office when the budget proposal was released in January.

—City News Service