Gov. Newsom releases $144B California budget

Gavin Newsom

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

Posted: Jan 10, 2019 10:04 AM
Updated: Jan 10, 2019 11:34 AM

UPDATE 11:30 a.m. Thursday, Jan. 10, 2019 - (AP) Gov. Gavin Newsom first state budget plan totals $144 billion in general fund spending.

Newsom's proposal, released Thursday, marks a 4 percent 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 percent 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.

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