By Rory Carroll
(Reuters) - California Governor Jerry Brown on Tuesday proposed a $179.5 billion state budget for the next fiscal year, a nearly 5 percent increase over this year, but warned that the state must remain fiscally prudent in anticipation of an inevitable economic downturn.
The Democratic governor also proposed a $122.5 billion general fund budget for fiscal year 2017-18, virtually unchanged from this year.
Brown proposed to boost funding for state reserves, education, health care expansion, and transportation infrastructure, counteracting poverty and combating climate change.
Brown stressed the need for the state to bolster its rainy day fund in anticipation of an economic recession.
"California has the most progressive tax system in the United States," Brown said during a press conference.
"But as a corollary, we have one of the most unreliable revenue systems in the country," he said, referring to the state's greater reliance on capital gains taxes and less on property tax revenue than other states.
(Reporting by Rory Carroll; editing by Diane Craft)