Brown Boosts California Schools Spending by $2.9 Billion

California Governor Jerry Brown increased spending on education by $2.9 billion and projected that the state would have an $850 million surplus at the end of next year after voters boosted sales and income taxes.

Brown cautioned that the revenue increases could be temporary, noting that the “uncertain economic recovery” and other factors could jeopardize California’s progress.

While revenue in the current year is up $2.8 billion, next year it will be down $1.3 billion, said Ana Matosantos, Brown’s finance director. The state Legislative Analyst’s Office had calculated the increase at $4.5 billion at the end of April.

“This budget builds a solid foundation for California’s future by investing in our schools, continuing to pay down our debts and establishing a prudent reserve,” Brown said today in Sacramento. “But California’s fiscal stability will be short-lived unless we continue to exercise the discipline that got us out of the mess we inherited.”

Brown, who served two terms as governor from 1975 to 1983, returned in 2011 facing a $26.6 billion deficit and a $35 billion “wall of debt” -- his term for internal and external borrowing and delayed payments to schools and community colleges. The governor said spending cuts and higher taxes are projected to reduce the wall of debt to $4.7 billion by 2017.

Standard & Poor’s in January raised the state’s credit rating to A, sixth highest, the first increase since 2006.

To contact the reporters on this story: Michael B. Marois in Sacramento at James Nash in Los Angeles at

To contact the editor responsible for this story: Stephen Merelman at

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