Last Friday, Governor Jerry Brown unveiled his 2015 budget proposal, which calls for a $113.3 billion dollar general fund and assumes a revenue increase of $4 billion for the fiscal year. The total spending plan advanced by the administration is $164.7 billion increase (1.4 percent) from the last fiscal year.

The governor emphasized education as a significant component of his plan, calling for UC’s to hold the line on tuition increases, and the state’s unfunded retiree health obligation, which is nearly $72 billion. During his press conference, the governor was emphatic in response to inquiries by the press as to whether or not the state should use the rainy day fund to pay down the state’s long term obligations, contending that the money would continue to be saved for future recessions.

Brown also restated his belief that Proposition 30 tax increases should remain temporary.

Highlights of the governor’s proposal include:

• $4 billion increase in revenue through June 2016, according to a source
• $533 million for cities and counties to pay off unreimbursed state mandates
• $2.4 billion from the newly approved Proposition 2, half for the rainy-day fund and half to pay down debt. The rainy-day fund would total $2.8 billion by June 2016
• $65.7 billion for education
• $1 billion in cap and trade revenue
• $532 million in expenditures from the Proposition 1 water bond to continue the implementation of the Water Action Plan, the administration’s five-year road map towards sustainable water management

A link the governor’s news release can be found here. For more information, please contact Jason Lane, vice president of government relations, at jlane@calbankers.com or (916) 438-4420.