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Brown Proposes $122.2B Budget As Revenues Lag

SACRAMENTO (AP) — Gov. Jerry Brown is proposing a $122.2 billion budget plan, down slightly from his January proposal as he projects tax revenues will come in nearly $2 billion less than expected.

The budget Brown released Friday for the fiscal year starting in July projects the state will return to deficits when temporary income taxes on the wealthy expire in 2019.

Brown says "the surging tide of revenue is beginning to turn."

The Democratic governor included some spending increases sought by his fellow Democrats, including higher spending for development disability services and higher payments to Medi-Cal providers.

Tax collections have slowed since Brown proposed a $122.6 billion general fund spending plan in January. By law, about half the state's spending goes to K-12 education and higher education.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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