California governor, legislature agree on final budget

Reuters News
Posted: Jun 13, 2017 2:17 PM

By Robin Respaut

(Reuters) - California Governor Jerry Brown announced on Tuesday that state lawmakers had reached an agreement about the state's 2017-2018 budget.

Both houses of the state legislature will likely vote on the new budget on Thursday, the constitutional deadline for lawmakers to adopt a budget bill.

California's Department of Finance had not totaled the final budget numbers as of Tuesday morning, according to department spokesperson H.D. Palmer.

The budget adds $1.8 billion to the state's rainy day fund, expands access to California's Earned Income Tax Credit and boosts funding for schools and infrastructure repairs, according to the governor's office. It also sends more money to the nation's largest public pension fund, California Public Employees' Retirement System (CalPERS), to help reduce the fund's unfunded liability.

“This budget keeps California on a sound fiscal path and continues to support struggling families and make investments in our schools,” Brown said in a statement on Tuesday.

“This budget makes historic investments in healthcare, education, and childcare, and lays down a multi-billion dollar investment to start fixing our roads and infrastructure,” said Senate President pro tem Kevin de León.

Brown proposed a state budget in January for the new fiscal year and revised his budget up 2.2 percent to $183.4 billion in May.

(Reporting by Robin Respaut; Editing by Chizu Nomiyama)