California | January 11, 2019

New California Governor Proposes $144B Budget, Predicts Surplus

California Gov. Gavin Newsom has unveiled his 2019-20 “California for All” budget. It encompasses a $144 billion general fund plan, that’s up 4% from the current year, and predicts a $21.4 billion surplus as a result of larger tax collections and slowing state health care costs.

The newly-elected governor notes it is a fiscal blueprint that builds a strong financial foundation by investing an unprecedented $13.6 billion in budget resiliency, and paying down unfunded pension liabilities.

“During my inaugural speech, I described the California Dream as a house we are building together,” said Governor Newsom. “That wasn’t just a speech device – it’s exactly what we are proposing today. To make the California Dream available to all, our state must be fiscally sound. This budget lays a strong financial foundation for our state by eliminating debts, expanding the rainy-day fund and paying down our unfunded liabilities.”

That includes:

$4 billion investment that eliminates all outstanding budgetary debt as well as deferrals
$4.8 billion to build reserves, bringing the state’s Rainy Day Fund to more than $15 billion this year (the largest amount ever) and nearly $20 billion over four years
$4.8 billion to pay down unfunded retirement liabilities

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About Dennis Kaiser

Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services. In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company. In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix. Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.