SAN FRANCISCO — California Gov. Jerry Brown signed the state’s $85.9 billion spending plan Thursday on the final day of the fiscal year. It’s the first time in five years the budget has arrived on time.
Lawmakers, relying on the Legislature’s Democratic majority, passed a budget late Tuesday that depends on cuts plus $4 billion of future revenue to fill a $9.6 billion hole left in the state’s spending plan.
If the $4 billion evaporates, cuts to education and other services will be triggered later in the fiscal year to bring the budget back toward balance. The Department of Finance will determine whether the revenue projection hit the targets.
The governor made more than $200 million in line-item vetoes to the budget, including $147 million in cuts to bond proceeds for the state’s proposed high-speed rail project.
It was the earliest-adopted budget since 2006 when Gov. Arnold Schwarzenegger signed a $189 billion spending plan, which was the first time in six years that the government met the July 1 constitutional deadline.
Brown had been unable to get Republican support for a key part of his earlier budget proposal that would have set a special election to extend temporary tax increases. But that required a two-thirds majority vote and GOP support.
Controller John Chiang had said he would dock lawmakers pay for every day past a voter-mandated June 15 deadline the budget arrived.
The temporary taxes will now be allowed to expire.
Treasurer Bill Lockyer Tuesday said the budget is “financeable.”
In a letter to the governor and Democratic leaders, Lockyer said the budget plan reduces the need for cash-flow borrowing by as much as $2 billion, setting up a sale of $5 billion of revenue anticipation notes later this summer.
The state had been slated to go to market this summer with a $10 billion Ran issue to help balance out cash flow to pay for operations. The Legislature’s budget vetoed by Brown had projected a $7 billion note sale.
Earlier, Brown also signed budget trailer bills that essentially eliminate most local redevelopment agencies to fill $1.7 billion in the budget. The move has already triggered a legal battle with industry groups that call the legislation unconstitutional.
