Tax Windfall Allows Governor To Boost Spending In State Budget
Sacramento, CA — Governor Schwarzenegger has released a $131 billion state budget that benefits from a massive tax windfall and makes education the top priority.
Spending on education will increase to more than $55 billion. The governor says education has always been his passion, and now it´s fully funded.
The overall spending plan for the 2006-07 fiscal year is nearly $14 billion higher than last year. The governor says state revenues have increased “beyond all projections.”
The treasury took in $7.5 billion in unanticipated revenue. Schwarzenegger is vowing not to raise taxes and calls his spending plan fiscally responsible.
He says his proposed increases in education and health care spending reflect Californians´ priorities.