Republican lawmakers appreciated Brown's continued focus on filling state reserves but urged Brown to spend the rest of the remaining surplus on infrastructure repairs and paying down the state's massive unfunded pension liabilities.
"We're nearing the longest economic recovery in modern history, and as Isaac Newton observed: What goes up must come down", said Governor Brown. Brown says, "This is the time to save for our future, not to make price promises we can't keep". "I said it before and I'll say it again".
Brown started his keynote speech describing the relationship between the complexity of highly-engineered water infrastructure and the increase in California's population from 300,000 people, throughout most of its history, to the current 40 million. It calls for saving much of the windfall to buffer the state when the economy slumps. "He's saying we can't spend all this money, we have a surplus, but we need to be smart about how we do this, put it in a rainy day fund, pay down debt, that's important because it only takes a mild recession in California to where we get back to deficits", said Assemblyman James Gallagher.
Brown said he would be "reluctant to embark" on new long-term spending during negotiations with lawmakers because he wants to leave the next governor in a good spot.
The revised budget Gov.
Both Cantil-Sakauye and Brown have also expressed support for reforming California's bail system, issuing a joint statement a year ago voicing concern over how money bail affects the poor, and pledging to work toward a new system that considers both public safety and cost. He preferred to direct all but $300 million to reserves. He noted, "Revenues have grown since January but so have expenditures".
The governor is expected to favor one-time spending over permanent increases. Since then, the Department of Education determined that student enrollment declined this year, making it unlikely that the state would give additional money to K-12 schools. And it offers $2 million to UC San Diego to research cannabis as medicine; $10 million to other state universities to research impacts of Prop. 64; and $3 million to the California Highway Patrol to establish better ways to detect drivers under the influence of marijuana.
Brown is continuing to push his proposal first announced in January to create a new online community college that would primarily serve working adults.
There's a $100 million allocation proposed for deferred maintenance projects throughout the two systems.
Assembly Democrats said this week they'll push for a $1 billion boost in spending on health care, including $250 million to provide state-funded health coverage to low-income California residents living in the country illegally through the Medi-Cal program. "They're not going to get any more".
Tax collections are about $3.8 billion above what Brown anticipated in January, according to the State Controller's Office.
Mental Health Services ($312 million) - The state will provide funding for programs that help people with mental illness, including training for mental health professionals and early identification of mental health problems. Brown issued an executive order as well for new forest regulation goals in the hopes of reducing wildfires as detailed here.
As firefighters stood somberly on one side of the Capitol for a news conference, hundreds of mothers and children demanding more funding for affordable child care programs rallied on the other side. The governor plans for the vast majority of that surplus to go into the state's "rainy day" fund. The Legislative Women's Caucus is pushing for an additional $770 million investment to raise the rate for providers and expand the number of available spots. Brown is preparing to release his last state budget proposal.
"Within these principles - of balance, need and scrutiny - I have tried to write a budget that responds to California's future".
Meanwhile, some moderate Democratic lawmakers - calling themselves the New Democrats - have introduced a bill that would help the state save even more of its surplus, using an optional, flexible savings account "to weather the state's boom-and-bust revenue cycle".