The California Legislature convened on Sunday to enact the 2014-15 state budget, a proposed spending plan agreed to by both houses and the governor earlier in the week. The budget includes more than $200 billion in spending (including federal funds) and restores funding for numerous cuts to programs previously reduced during years of double-digit deficits. Highlights of the 2014-15 state budget:

– Provides $108 billion in general fund spending, an increase of $7.3 billion from last year
– Contains $76 billion in K-12 education funding, an increase of $5.6 billion more than last year’s budget
– Appropriates $250 million in funds for high-speed rail using 25 percent of the state’s cap and trade fund
– Pays down $11 billion of debt, including deferrals and budgetary obligations
– Appropriates $1.6 billion for a “rainy day” fund
– Increases court funding by $233 million
– Pays $100 million to local governments for mandated services which began accruing 10 years ago

For more information please do not hesitate to contact Jason Lane, VP of government relations, at jlane@calbankers.com or (916) 438-4420.