Gov. Gavin Newsom Releases $144 Billion California Budget

Courtesy: MGN

Gov. Gavin Newsom first state budget plan totals $144 billion in general fund spending.

Newsom's proposal, released Thursday, marks a 4% increase over the last budget approved by his predecessor, Jerry Brown. It's the Democratic governor's opening request in six months of budget negotiations with legislative leaders. He says 86% of the new spending is for one-time investments.

California has seen revenue soar amid a thriving economy. Newsom's plan includes $13.6 billion to boost reserves and pay down debt and pension liabilities.

The budget expands the earned income tax credit, adds $1.3 billion for housing development and nearly $2 billion for early childhood education and care.

Including bonds and special funds the total budget is $209 billion.

Lawmakers must approve a spending plan by June 15.

Gov. Jerry Brown signed a $139 billion budget last year.

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