Free Republic

Surplus? What surplus? That was the message from legislative leadership this week as the hands came out for a piece of the unexpected tax revenues. The state so far has collected billions in revenues above this time last year. And yet, everyone seems to be talking about fiscal restraint. "The increased revenue more allows us to dodge a bullet than really move forward," said Assemblyman John Laird, D-Santa Cruz, chairman of the Assembly Budget Committee. The surplus revenue quickly disappears when one starts to add up the state's pending obligations and shortfalls, Laird said. These include $330 million for midyear...

A multibillion dollar tax windfall has eased the strain of California's perennial state budget debate and handed Gov. Arnold Schwarzenegger a chance to buy off Democrat and Republican critics as he heads into his re-election campaign. Stock gains, home sales, business profits and taxes on rising gas prices are expected to bring in revenue at least $5 billion above forecasts from just two months ago. The money already has allowed the Schwarzenegger administration to pledge that it will give more to public education and appease the state's teachers union, which has been critical of the governor's spending. "It really helps...

SACRAMENTO, Calif. (AP) - A nearly $4 billion windfall from unanticipated revenue would be used to pay down debt, improve highways and restore some funds cut from schools and other programs, Gov. Arnold Schwarzenegger proposed Friday. While the revised $115.7 billion state budget plan would take a big step toward balancing state spending with income, it did little to satisfy the governor's critics among Democratic lawmakers and education officials, who vowed to fight the proposal. "As governor, you have to be like a parent," said Schwarzenegger during a news conference near the Capitol. "No, no, no - you can't this,...

05:11 PM ET (Updates with background, comments) SAN FRANCISCO, May 13 (Reuters) - California Gov. Arnold Schwarzenegger, citing better-than-expected revenues, unveiled a revised state budget on Friday for the coming fiscal year that would raise spending to $115.7 billion and plug a shortfall estimated to have narrowed to $4 billion. Schwarzenegger also said he no longer sees the need for issuing debt, including $1.7 billion in economic recovery bonds, to balance the state's books. His initial spending plan issued in January for California's 2005-06 fiscal year totaled $111.7 billion and aimed to balance the budget by closing a shortfall then...