Gov. Jerry Brown on Tuesday unveiled his nearly $180 billion state budget proposal for the 2017-18 fiscal year.
At the press conference, Brown spoke on the projected $1.6 billion deficit California is currently facing and gave an overview of his plans to combat recession-related issues.
“California has the most progressive tax system in the United States,” Brown said. “We do ask those who make the most money to pay the highest percentage of taxes. As a corollary, we have one of the most unreliable revenue systems in the country, and to manage unreliability requires prudence and that we keep a very close eye on the balance of our budget.”
The proposal focuses on boosting state reserves, a must when running a progressive tax system, according to Brown. The plan recommends that the state put away approximately $1.15 billion in the budget, bringing California’s Rainy Day Fund to a total of $7.9 billion by the end of the upcoming fiscal year, a move that will help make the impact of reductions more manageable and less severe.
Additionally, the proposal outlines solutions, such as collecting unspent funding from the previous budget, to help make sure the budget remains balanced. The proposed solutions total $3.2 million. When compared to 2016-17, spending levels in 2017-18 remain flat.
Keeping a balanced budget and healthy reserves aren’t the only priorities incorporated in the draft budget. The proposal also appropriates $4.2 billion annually to improve roads, transit and trade routes, as part of Brown’s transportation package introduced in 2015; allocates $3.4 billion in cap-and-trade auction proceeds in 2017-18 to help reduce greenhouse gas emissions; and recommends funding to bolster education, counteract poverty and continue health-care expansion.
“We’re subject to a lot of unpredictability,” Brown said. “Whether it’s the new [federal] administration and what they might do to money that would normally flow to California or the economy itself, I think it’s time for precaution.”
