California Budget Surplus

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Money

California’s Debt to GDP percent is falling. It is currently 20.62%. Spending and debt continue to rise, but the level of revenue is increasing faster.

Governor Jerry Brown (D) proposed a new budget on Thursday which raises spending on schools and the social safety net.

California public schools (K-12) would get $1.89 billion more than last year and the state would pay back $1.8 billion that it owes schools from previous years.

“This is new; this is a breakthrough,” Brown stated during today’s news conference. “But it doesn’t mean we’re in the clear.”

According to the San Jose Mercury News, Brown calls for paying $4.2 billion down on the “wall of debt” built by previous governors — “paying for the expenses of the past instead of meeting current needs” — and establishing a $1 billion rainy-day fund.