Governor to release update to record spending plan

Gov. Jerry Brown Tuesday will present his updated budget for the coming fiscal year, a spending plan bolstered by California’s economic turnaround and voter-approved tax hikes.

Tax revenue in the current fiscal year is running ahead of expectations by more than $2 billion, according to the state controller’s office.

Even so, the Democratic governor is pressing lawmakers to maintain fiscal restraint by stressing the need to pay down tens of billions of dollars in debt and long-term liabilities.

California’s general fund is expected to reach a record high with help from a soaring stock market and the sales and income tax increase approved by voters in 2012.

The expected surplus is a stark turnaround from the not-too-distant past, which was marked by multibillion-dollar shortfalls, state worker furloughs and state-issued IOUs.

Brown already has set a cautious tone for the revised budget he will present for the fiscal year starting July 1.