California Governor Jerry Brown is expected to release his revised budget plan for 2014 Tuesday. The state Treasury has brought in an unexpected $2 billion in revenue since January, which is sure to be a factor in the battle over spending priorities
Paul Warren with the Public Policy Institute of California says Brown has prioritized funding the state’s dwindling public employee pension systems. Warren says the Governor could steer the extra revenue in that direction.
“In the budget in January he said he’s really concerned about the teachers’ retirement fund,” which has a large shortfall,” says Warren. “So this new money could provide a way to kind of start eating away at that shortfall.”
The Governor and the state legislature recently agreed to a constitutional amendment that would set aside money in a rainy day fund.
Brown has clashed with some fellow Democrats who say his budget doesn’t spend enough on social benefit programs, which were slashed in previous budget years.