Gov. Jerry Brown Proposes $2.9 Billion More for Schools

Projects a surplus, but warning signs show an upcoming drop in tax revenue

California Governor Jerry Brown increased spending on education by $2.9 billion and projected that the state would have an $850 million surplus at the end of next year after voters boosted sales and income taxes.

Brown cautioned that the revenue increases could be temporary, noting that the "uncertain economic recovery" and other factors could jeopardize California's progress.

While revenue in the current year is up $2.8 billion, next year it will be down $1.3 billion, said Ana Matosantos, Brown's finance director. The state Legislative Analyst's Office had calculated the increase at $4.5 billion at the end of April.

"This budget builds a solid foundation for California's future by investing in our schools, continuing to pay down our debts and establishing a prudent reserve," Brown said today in Sacramento. "But California's fiscal stability will be short-lived unless we continue to exercise the discipline that got us out of the mess we inherited."