California’s tax revenues are surging ahead of expectations, giving an election-year jolt to the state budget and providing more money for public schools, health services and higher education.
Gov. Arnold Schwarzenegger on Tuesday proposed a $125.6 billion spending plan that does not raise taxes, a 7 percent boost over last year. It also marks the first time in several years that the state projects enough tax revenue to cover spending without significant borrowing, a reversal from budget deficits that reached into the billions before Schwarzenegger took office.
The 2006-2007 budget proposal from the governor includes $97.9 billion in general fund spending and $25 billion in spending from special funds, which is money such as a gas tax that is dedicated to specific programs such as highway repairs. The rest of the spending, $2.7 billion, is to repay bonds.
