Fix the roads, California Governor Brown tells lawmakers

By Sharon Bernstein SACRAMENTO, Calif. (Reuters) - California Governor Jerry Brown urged continued fiscal restraint amid the state's economic expansion but hinted broadly that new fees would be needed to pay for repairs of deteriorating roads, bridges and other infrastructure. Improvements in the state's financial health and a weather pattern that is helping to ease four years of catastrophic drought put California on a stronger footing as Brown addressed the legislature for his 14th State of the State address on Thursday. "We have to bite the bullet," said Brown, who last summer pushed unsuccessfully for new fees to help pay long-neglected repairs to the state's transportation infrastructure. Roads and bridges make up the bulk of an estimated $77 billion in delayed repairs to public property, he said, and, "One way or another the roads must be fixed." Brown, who served two terms as governor from 1975 to 1983 before returning to California's top job in 2011, also called on Republicans to agree to proposed changes in a tax on some health insurers, with proceeds to help pay for healthcare for the poorest Californians. Brown cited his administration's support for California's new $10 minimum wage, saying the January hike, combined with a tax credit for the working poor, will ease income inequality. Brown has been tight-fisted since returning to office in 2011, reining in the state's liberal Democratic majority lawmakers to build a rainy day fund and hold down expenses after facing down a $27 billion budget deficit. He is widely credited with stabilizing the state's finances, in large part by urging voters in 2012 to approve a temporary tax increase that allowed the state to cover its budget gap and restore some social services. Earlier this month, Brown proposed a budget plan for fiscal year 2016-2017 that included a $2 billion payment to the state's rainy day fund and called for increases in spending on education, transportation infrastructure, as well as a modest increase in aid for the disabled. But the fiscal moderate has held the line on committing more funds to such programs in the absence of new revenue streams for the state. He is hesitant to call for new taxes on income or sales after supporting a temporary tax three years ago, but has supported other fees, such as a road usage tax or an increase in the tax on gasoline. Senate Republican leader Jean Fuller of Bakersfield said her caucus would work with Brown on infrastructure repairs, but opposes enacting new fees. (Reporting by Sharon Bernstein; Editing by Bill Trott and Tom Brown)