Gov. Jerry Brown’s last budget grows to $199 billion

Gov. Jerry Brown is using a surging, $8.8 billion surplus in his 16th and final year leading the state to stash billions of dollars in reserves.

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He wants to put almost all of the additional money — $7.6 billion of it — into two reserve funds that combined would hold $17 billion a year from now if trends hold.

He warned at a press conference Friday where he unveiled his final budget for the 2018-19 financial year that a recession could be just around the corner and the state should avoid long-term commitments that it might not be able to afford in a downturn.

“This is a time to save for our future, not to make pricey promises we can’t keep. I said it before and I’ll say it again: Let’s not blow it now,” Brown said.

His plans calls for $137.6 billion in general fund spending and $199.3 billion in total spending. Those sums reflect the dramatic turnaround in the state’s fortunes since Brown took office in the throes of a recession eight years ago. …

Click here to read the full article from the Modesto Bee

Comments

  1. tomsquawk says

    a healthy reserve is necessary for the looming pension crisis

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