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State budget: Record-high spending, but a 'wall of debt'
R. David Bulen Insurance, CA, Jerry BrownSACRAMENTO — A robust economic recovery and surging revenue propelled by voter-approved tax increases has sent California's general fund spending to a record high, marking a dramatic turn-around from the state's days as the nation's poster child of fiscal dysfunction. Yet Gov. Jerry Brown, in releasing his budget proposal Thursday, pledged to take a somber approach in spending the windfall. He said California must begin paying down what he has called its massive “wall of debt,” a stew of unfunded liabilities, bond debt and borrowing that is estimated at $355 billion. His somewhat cautious approach will run afoul of some of his fellow Democrats in the Legislature, many of whom already are clamoring for higher spending on pet programs. “When you're at this level of long-term liability, it isn't time to embark on a raft of new initiatives,” Brown said in announcing details of his budget during a Capitol news conference. His budget proposal for the 2014-15 fiscal year dedicates $11 billion to paying down debts and liabilities, including $6 billion in payments that had been deferred to schools and nearly $4 billion to pay down the so-called economic recovery bonds left over from the administration of Gov. Arnold Schwarzenegger. It does not address long-term liabilities in the state's teacher retirement fund, which will require billions of dollars extra a year to make solvent. Instead, Brown said he wants to create a plan for long-term solvency this year. Read the entire article here. Content provided by http://www.ocregister.com/articles/state-596652-billion-budget.html  
Lisa Mosby
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