Governor Brown Reaches $200 Billion Budget Deal

On Friday, Gov. Jerry Brown and Democratic legislative leaders decided against two proposals that would have expanded access to health care and tax breaks to undocumented Californians. The $200 billion budget deal sets aside enough money in reserves to fill the "Rainy Day Fund" with almost $14 billion. Another $2.2 billion will go to contingency funds for other unexpected emergencies. 

The sum of these two set aside funds gives the state around $16 billion in total reserves. According to the legislative Analyst's Office, that's 'enough to weather a mild recession without severe cuts to government services.'

One of the two proposals that did not pass was aimed at helping low-income, undocumented young adults and senior residents receive Medi-Cal coverage. 

Brown says he thinks there has been a turnaround in the state's fortunes since he took office. 

"After detailed discussions, California is on the verge of having another on-time, balanced budget,” he said. “From a $27 billion deficit in 2011, the state now enjoys a healthy surplus and a solid Rainy Day Fund."

Gov. Brown and lawmakers also rejected an Assembly proposal that would have helped poor Californians recover some of their state income tax. It would have expanded to those who do not have social security numbers so they could still apply for it. 

Photo: Getty Images

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