Brown administration shifts schedule for repaying loans
A change in when the state plans to pay back loans is a key part of Gov. Jerry Brown's rosier financial outlook for the next budget.
Sacramento owes roughly $30 billion to schools, local governments and dedicated funds. When the governor signed into law the state's current spending plan, he expected to repay $5.2 billion in the fiscal year that starts July 1.
However, Brown's latest proposal includes only $4.2 billion to pay back loans.
By shifting those repayments into future years, the governor frees up more money in the new budget plan he released Thursday.
Administration officials said the reduction is possible because they reevaluated how much money should be returned to dedicated funds during the next fiscal year. Those funds are dedicated to various programs, and the state is supposed to repay the loans when the money is needed.
Brown plans to pay back all but $4.3 billion of the debt by the middle of 2017.
-- Chris Megerian in Sacramento
Photo: Gov. Jerry Brown walks off stage after introducing his new budget plan on Thursday. At right is his finance director, Ana Matosantos. Credit: John G. Mabanglo / EPA