SACRAMENTO (CBS/AP) – California is enjoying a revenue surplus for a change. Gov. Jerry Brown is reaping the benefits of an economic turn-around and higher taxes as he prepares to release his update Tuesday for the coming fiscal year’s budget.
The stock market is surging, home prices are up and the unemployment rate is down, contributing to a revenue surge of $4.5 billion more than expected from personal income taxes.
But the Democratic governor, who has pledged to maintain fiscal restraint and build a cash reserve, faces pent-up pressure from members of his own party. Democratic lawmakers want to spend the additional revenue to make up for years of budget cuts to programs serving women, children and the poor.
Assembly Speaker John Perez, D-Los Angeles, announced his fiscal priorities last week and said he wants increased spending on child care services for the poor and college assistance for middle-class families.