The state’s budget surplus has ballooned to nearly $9 billion, the largest in at least 18 years, at a time when California is facing serious challenges like rising homelessness and growing inequality. He wants to save most of the surplus to protect spending during a future recession, boosting the rainy day fund to nearly $14 billion. With the most robust revenue projections California has seen in years Brown is likely to face even more pressure from Democrats to boost spending. The University of California and California State University systems are seeking increases they say is needed mitigate tuition hikes. Brown’s $137.6 billion spending plan reflects money from the general fund, the state’s main bank account.

Source: National Post May 12, 2018 05:03 UTC