Governor Brown releases May revision of state budget proposal

FRESNO, Calif. (KFSN) -- California Governor Jerry Brown released his revised projections for the state budget. With nearly $7 billion in unexpected revenues the budget is now the highest in state history at more than $115 billion.

Despite the windfall from higher tax revenues from the improving economy the Governor is warning the legislature be careful about spending it all.

"We know a recession is on the way," said Governor Jerry Brown. "It's around the corner is it next year, is if four years from now, it's coming."

Because of the uncertainties of the future the Governor wants to put about $4 billion in the bank, to save for the next downturn. But other than that, it's more money for just about everyone. The nearly $70 billion public education budget jumps by $3 thousand per student. The UC system gets more than $400 million and avoids raising tuition for two years. Welcome news to UC Merced Freshman Samantha Rodriguez.

Rodriguez said, "I was worried about the tuition increase I remember a lot of the students doing protests against it."

The CSU system gets nearly $40 million more, while community colleges are slated for a boost of more $600 million.

The Governor is under pressure from fellow Democrats to boost spending for the states low income workers. So the he is pitching a tax credit that could save each family from around $500 to nearly $3,000 a year depending on family size.

"For the families that get it, it means a lot." Brown said.

The governor has also penciled in more than $2 billion for drought relief, in the form of water conservation and expanding local water supplies.

"It's a whole variety of things new technologies, farm worker assistance, water conservation. Technology to help farmers," Brown explained.

California is known for its budget battles but so far, even Senate Republican Leader Bob Huff approves of the Governor's approach.

Huff said, "This budget strikes a good balance of putting revenues where they need to be but holding the line on new spending and paying off the debt."

The legislature begins action on the budget in June.