Brown declares California budget balanced

January 15, 2013

Gov. Jerry BrownGovernor Jerry Brown said Thursday that the California budget deficit has disappeared, due in large to the passing of Proposition 30. [Sacramento Bee]

The proposed balance budget marks the first time since the beginning of the recession that California legislators have not faced a large deficit in January. Brown’s declaration that California is spending less than it is taking in also marks the first time a governor has made such a a claim since Gray Davis did so in 2001.

Brown proposed a $99.7 billion general fund that increases funding of K-12 and higher education while restraining the growth of all other programs. The Democratic governor called on Greek philosophy to justify the spending increase on education outlined in Prop. 30.

“We know from back to Greek philosophy, Aristotle, that treating unequals equally is not justice,” Brown said. “Growing up in Compton or in Richmond is not like it is to grow up in Los Gatos or Beverly Hills or Piedmont.”

Brown proposed a $2.7 billion increase in K-12 funding over the current year. He also proposed spending an additional $250 million on both the University of California and the California Sate University systems.

Much of the increased education funding will come from the estimated $15 billion tax hike created by the Prop. 30. The tax hike will increase the sate sales tax and increase income taxes on high earners through June 2014.

Democrats, as well as Republicans, said they generally support Brown’s budget. The Democrats do, however, have the ability now to pass the budget without any Republican votes. The party gained two-thirds control of both the assembly and the senate in November.

 


23 Comments

  1. The Gimlet Eye says:

    I don’t think Brown has ever heard of Austrian economics. He waves a magic wand instead, and voilà, a balanced budget.

    Oh, Lord, where is Murray Rothbard when we need him?

    Like or Dislike: Thumb up 0 Thumb down 0

  2. Grrr says:

    Standard government fuzzy math. Don’t try this at home. It won’t work.

    Like or Dislike: Thumb up 7 Thumb down 2

  3. danika says:

    Are we going by the true definition of balanced, or Mr. Brown’s definition of “balanced”?

    Like or Dislike: Thumb up 6 Thumb down 2

  4. willieslo says:

    All is fine
    Now they can relax
    And go back to spending again

    Like or Dislike: Thumb up 10 Thumb down 3

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