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Jerry Brown Is Leaving California a Fully Funded Piggy Bank

  • Rainy-day fund approved by voters at maximum for first time
  • Approach of term-limited governor has won Wall Street fans

Here’s one plus for bond investors worried about the end of California Governor Jerry Brown’s reign: he’s leaving his successor a rainy-day fund at the constitutional maximum for the first time.

In the budget for the year beginning in July, Brown, a term-limited Democrat, and legislative leaders have agreed to steer more money than is legally required to the reserve account approved by voters in 2014 so that it’s equivalent to about 10 percent of the government’s annual tax revenue, or about $13.8 billion. Lawmakers sent Brown the spending plan Thursday evening.