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California Governor Jerry Brown set to unveil budget plan for 2016-17

Gov. Jerry Brown is set to release his budget proposal for the next fiscal year, as California continues to see its tax revenue booming.

On Thursday, the Democratic governor will spell out how he thinks the money should be spent.

He has generally taken a restrained approach to boosting spending, but Brown faces increasing demands to spend more.

Democrats in the state Legislature want to boost funding for social services and health care for the poor. Republicans say any one-time money should go to major projects such as transportation infrastructure and water storage.

Brown and lawmakers also have to figure out how to replace a $1.1 billion annual tax on health plans that is expiring.

His budget proposal sets the stage for a months-long debate with lawmakers.

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