Gov. Newsom Offers $144B Budget, Sees Big Surplus
SACRAMENTO, Calif. (CBSLA/AP) — California Gov. Gavin Newsom proposed a $144 billion general fund budget on Thursday that's up 4 percent from the current year and predicted a $21.4 billion surplus from robust tax collections and slower growth of state health care costs.
It's the largest projected surplus since at least 2000, according to state finance officials.
Newsom says the budget provides a big boost for education.
"Historic amount of investment in our school system -- $80.7 billion," said Newsom.
The proposed $80.7 billion is about $2.5 billion more than last year.
The governor is also proposing a $3 billion payment into the state pension fund for teachers. The pension funds are what school districts across the state, including the LAUSD, say has been putting immense financial pressure on them.
Other highlights of the budget involving education include $750 million for kindergarten programs, $500 million for early childcare programs and $400 million for community college.
Overall the budget has $144 billion for the general fund and $209 billion overall -- an increase of about 4 percent over last year.
The budget puts nearly $14 billion in the rainy day fund.
Newsom has also proposed $1 billion for housing and $200 million for marijuana-related activities -- a 50 percent boost over last year.
The budget still has to be approved by lawmakers with a deadline by mid-June.
(© Copyright 2018 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)
