Brown Set to Release Budget

California Gov. Jerry Brown is tentatively set to release his budget blueprint for the next fiscal year early this month.

The governor’s budget proposal, which will be the framework for debate on spending in the Legislature for fiscal 2014 starting July 1, could be unveiled late next week, according to finance officials.

The state’s nonpartisan Legislative Analyst’s Office said in a report last month that it forecasts the state will face a $1.9 billion budget deficit next fiscal year.

Last year, the Legislature and Brown had to close an estimated $15.7 billion budget gap for fiscal 2013 to pass a balanced budget as required by state law.

During the November election, state voters passed Proposition 30, which imposes higher temporary sales taxes and income taxes on the wealthy.

Brown’s Department of Finance said last month that state revenues in November fell $840 million below the forecast in the budget, partly due to collections from Facebook’s initial public offering coming in a month earlier and lower than expected.

The report said California’s revenues were $936 million below year-to-date projections in the budget.

The improving California budget has drawn positive reactions from rating agencies, which downgraded the state’s debt in 2008 and 2009.

Standard & Poor’s in February raised its outlook on the state to positive from stable after the release of the Democratic governor’s budget.

California’s general obligation bonds are rated lowest of all state credits by Standard & Poor’s and Fitch Ratings at A-minus — one notch ahead of Illinois at A1 by Moody’s Investors Service.

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