California budget plan reflects tax revenue surge

California Gov. Gavin Newsom on Friday proposed a 268 billion dollar state budget that is one-third larger than the state's current spending plan, fueled by surging state tax revenues and federal stimulus money. (May 14)

Video Transcript

GOV. GAVIN NEWSOM: This is an historic transformational budget. This is not a budget that play small ball. We're not playing in the margins. We're not trying to fail more efficiently. We're trying to do things the state has talked about but never been able to accomplish because we never had the resources to do it.

This is not a modest commitment to address the issue of homelessness in the state. This is simply without precedent, put it in perspective as a two-year commitment. Last year, we had a historic budget investment of about $1.3 billion. You can see a multiple of that over the next two fiscal years that we're proposing to get 65,000 people off the streets and placed in to support. That's significant.

When you are enjoying a $76+ billion and growing operating surplus, I don't think it's time to do tax increases. I say that with respect. I support our progressive tax system and that progressive tax system, by definition, affords opportunities to batten down the hatches, build reserves, pay down debt, and make the kind of investments that we're making here today.