CA state budget deficit disappears, but debt remains

California Governor Jerry Brown said Thursday that his proposed 2013-2014 budget would result in an $851 million budget surplus by the end of the fiscal year if given the green light by state legislators.

California Governor Jerry Brown on Thursday morning declared that the state will have an $851 million budget surplus by the end of the 2013-2014 fiscal year if state legislators approve his proposed budget.

"This is new," Brown said at a press conference Thursday of the state's possible return to the black after years in the red. "This is a breakthrough."

The Governor attributed the shift to new taxes approved by voters in the November elections, as well as steep budget cuts, adding that the cuts were triple the amount of the tax increases. Brown singled out the recession, overspending and ill-advised tax cuts under previous Governors as reasons for the state's past financial struggles.

Despite the good news for the deficit, Brown cautioned that a "wall of debt" remains to be addressed. The state still has more than $34 billion in outstanding debts, which should drop to just over $4 billion by 2017.

Brown also warned that federal economic uncertainty with the national deficit and rising health care costs are also issues to watch for the state.

Under Brown's proposal, schools will receive $56.2 billion in funding for the next fiscal year, though educators had asked for more to avoid additional tuition hikes at public universities in particular. Brown encouraged increased "efficiency" with allocated funds to avoid this.

The Governor also carved out $350 million for the state's Medi-Cal program to implement the federal Affordable Care Act health care overhaul, though that total could change as provisions of the federal law actually go into affect.

The state's Legislative Analysts Office in November had projected a $1.9 billion state deficit, down from $15.7 billion for the current fiscal year.

Click here for Brown's full proposed 2013-2014 budget, available from the Los Angeles Times.

Lauren Hepler covers economic development, sports, and hospitality for the Silicon Valley Business Journal. She can be reached at 408.299.1820

Source: http://feeds.bizjournals.com/~r/bizj_sanjose/~3/6rtq1p_Qwy0/ca-state-budget-deficit-disappears.html

octavia spencer meryl streep oscars school shooting ohio billy crystal oscar winners 2012 billy crystal oscars 2012 angelina jolie oscars