Reuters – Sharon Bernstein
“(Reuters) – California would spend more on education and sock away an extra $1.2 billion for a rainy day under a budget proposal to be released on Friday by Democratic Governor Jerry Brown, a fiscal moderate whose tight-fisted policies helped stabilize state finances. “Soon we will make the last payment on the $15 billion of borrowing made to cover budget deficits dating back to 2002,” Brown said in a speech earlier this week. “We will also repay a billion dollars borrowed from schools and community colleges.” Brown’s plan is the first volley in what will no doubt be months of wrangling with members of his own party who say they state should spend more on social programs as the improving economy has increased California’s tax revenues.”(more)