California state budget: Here's why to hold the applause for Brown

  • California state budget: Here's why to hold the applause for Brown

California state budget: Here's why to hold the applause for Brown

"The rate of growth in these spending areas is not sustainable in the future and diverts revenue that could be invested in education, transportation and truly addressing the causes of our highest-in-the-nation poverty rate", Rob Lapsley, president of the California Business Roundtable, said after Brown released his budget proposal. Almost 70% of the state's projected revenue of about $135 billion next fiscal year is derived from personal income taxes, according to the governor's office.

Groups advocating for marijuana users say the massive windfall is unjustified, and they called on the state to reduce taxes and fees to make cannabis more affordable in the regulated market. The sole way of preparing is to observing your spending amount each year and accumulates the emergency fund.

One of the biggest goals involves filling the Rainy Day Fund with a $3.5 billion supplemental payment plus a constitutionally required transfer. This year, with only six months of taxing, the budget estimates $175 million in pot taxes.

"I think there's more financial uncertainty between Washington and Sacramento than in the past", said Jerry Nickelsburg, director of the University of California, Los Angeles Anderson Forecast, a leading forecaster.

"We can not ignore the fact that not all Californians have benefited from our state's renewed prosperity", Ting said, while unveiling his budget priorities last month.

The governor's spending plan would allocate $4.6 billion in new transportation funding in fiscal 2018-19 including $2.8 billion to fix neighborhood roads, state highways and bridges, $556 million for trade and commute corridors, $200 million for high-priority transportation projects and $721 million for passenger rail and public transit modernization. The Democratic governor projects California will have a $6.1 billion surplus but he wants to keep almost all of it in reserve for a future recession. He argued for local empowerment but crafted his budget considering the realities of California's tax structure.

The governor's January proposal is an opening gambit in the long march toward a budget that is to be adopted in June, before the July 1 beginning of the fiscal year.

This budget isn't the last word on how much state support colleges will receive next year.

In this year's budget proposal, the governor aims to increase money for K-through-12 schools - fully funding his Local Control Funding Formula two years early to provide additional money to districts that predominantly serve low-income students, English language learners and foster youth - and health care for low-income Californians through the state's Medi-Cal program.

Asked about how his spending priorities over the past seven years might affect his legacy, Brown deflected.

The Legislature approved 15 bills last year to encourage housing construction to help fill an annual 180,000-unit of homes that need to be built over the next 10 years to alleviate the housing crisis.

The budget includes $1.2 billion in new funding from a hike in gas taxes and vehicle registration fees approved previous year. One said public workers are are "entitled only to a "reasonable" pension, not one providing fixed or definite benefits immune from modification". The GOP tax bill places a $10,000 cap on the amount of local and state taxes that can be deducted from federal taxes.

A plan in the state Senate would allow people to work around the change by making a charitable contribution to the state in lieu of state taxes.

Such a change would likely need to be reflected in the state budget, even though it's meant to be revenue neutral.

Personal income taxes came in 25% higher at $11 billion in December.