Governor Newsom's proposed budget would balance the books

Governor Newsom gave a sneak peek at his proposed budget for the next fiscal year today, balancing the books despite record spending. His budget blueprint includes a substantial reserve fund, thanks to higher than expected tax revenues from a strong stock market. Governor Newsom projects a balanced budget of about 322 billion dollars, with a cash reserve of about 17 billion dollars. That’s a much brighter picture than last year’s spending plan, which required cuts to erase a deficit of about 56 billion dollars over two years. That two-year spending plan, along with a surge in income tax revenues, means California faces no deficit in the near term. The governor will lay out his full budget plan this Friday, and says it will include a larger investment in education, including full implementation of universal Transitional Kindergarten, expanded afterschool programs and universal free school lunches. For more on this, KCBS Insider Doug Sovern spoke with Bettye Lusk, President of the California School Boards Association. This is the State of California.