California Ends Decade of Deficits as Governor Signs New Budget

Thursday, 27 Jun 2013 05:37 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
California ended a decade of budget deficits on Thursday as Governor Jerry Brown signed a $96.3 billion general fund budget that includes a surplus and modestly increases spending.

The budget is based on a deal struck earlier this month by Brown and fellow Democrats who control the legislature. It is the third consecutive on-time budget he has signed – a sharp contrast to the routinely late budgets during the previous decade.

The spending plan for the 2013-14 fiscal year beginning on Monday marks an increase from the current fiscal year's $95.7 billion general fund budget and includes a surplus of $872 million and an emergency reserve of $1.1 billion.

The budget provides more money for education, dental and mental health programs, and it expands coverage under the federal health-care overhaul. The budget also repays internal loans used to balance the state's books over the years. That debt is on track to drop below $5 billion in the 2016-17 fiscal year from $26.9 billion, according to budget's summary.

It reflected Brown's cautious outlook for the state's finances, pointing to "substantial" risks and liabilities while "The budget remains balanced only by a narrow margin."

Standard & Poor's analyst Gabriel Petek said the budget shows California's finances are on stronger footing. But he said it is uncertain the state can sustain revenue gains that helped propel it to a budget surplus. S&P in January upgraded its rating on $73.1 billion of California's general obligation bonds one notch to A from A-minus and put a stable outlook on the state.

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
You May Also Like
Around the Web
Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved