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Brown Proposes Record $106.8 Billion California Budget

California Governor Jerry Brown proposed a record $106.8 billion budget as state coffers brim with the biggest surplus in more than a decade, setting up a fight with fellow Democrats who want more spending.

The 75-year-old Brown, who may seek a fourth term this year, called for an 8.5 percent increase from current spending, with $11 billion to pay off loans that papered-over previous deficits, and $1.6 billion in reserves, while increasing funds for schools, welfare and health care for the poor. Brown also said he’ll back a constitutional amendment to stockpile unpredictable capital-gains taxes and deal with looming shortfalls in public pensions.