A Look at the Governor’s Revised Budget
Gov. Jerry Brown released his $138 billion revised budget proposal Friday, which contains a larger expected surplus than the $132 billion spending plan he released early this year.
The January budget had projected a surplus of about $6.1 billion. That figure has now grown to around $8.8 billion. Under Brown’s plan, most of the surplus money would still be placed into state reserves, growing the Rainy Day Fund to nearly $14 billion.
“As Isaac Newton observed: What goes up must come down,” Brown said Friday, urging legislators to remain prudent despite the windfall.
One thing that’s already down, at least compared to projections, is marijuana tax revenues. Brown’s latest plan allocates $14 million to combat the enduring illicit marijuana industry, but some experts say marijuana taxes must be reduced in order to get the legal market performing the way it should.
Of all the news out of this latest budget, homelessness was another major highlight. Cities and counties would be on the receiving end of $359 million to combat the crisis of indigence plaguing their streets under this proposal. The latest plan adds $312 million for mental health and supports a $2 billion homeless housing bond for the November ballot.
Read more about the May Revise budget here.