California Governor Gavin Newsom

January 11, 2019 Comments Off on New California Governor Proposes $144B Budget, Predicts Surplus Views: 2277 California News, Top California

New California Governor Proposes $144B Budget, Predicts Surplus

California Gov. Gavin Newsom has unveiled his 2019-20 “California for All” budget. It encompasses a $144 billion general fund plan, that’s up 4% from the current year, and predicts a $21.4 billion surplus as a result of larger tax collections and slowing state health care costs.

The newly-elected governor notes it is a fiscal blueprint that builds a strong financial foundation by investing an unprecedented $13.6 billion in budget resiliency, and paying down unfunded pension liabilities.

“During my inaugural speech, I described the California Dream as a house we are building together,” said Governor Newsom. “That wasn’t just a speech device – it’s exactly what we are proposing today. To make the California Dream available to all, our state must be fiscally sound. This budget lays a strong financial foundation for our state by eliminating debts, expanding the rainy-day fund and paying down our unfunded liabilities.”

That includes:

  • $4 billion investment that eliminates all outstanding budgetary debt as well as deferrals
  • $4.8 billion to build reserves, bringing the state’s Rainy Day Fund to more than $15 billion this year (the largest amount ever) and nearly $20 billion over four years
  • $4.8 billion to pay down unfunded retirement liabilities

Read more at State of California budget

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