Gov. Brown, lawmakers agree on $115.4 billion California budget

SACRAMENTO — Gov. Jerry Brown and legislative leaders on Tuesday announced a $115.4 billion budget that sends billions of dollars more to public schools and universities in the fiscal year that begins July 1 and boosts spending on social welfare programs that legislative leaders have made a priority.

The budget includes $265 million to add 7,000 state-subsidized preschool slots and 6,800 for child care and extends the state's health insurance program for the poor to children who are in the country illegally, at a cost of $40 million a year.

"In the way we come together, we can conclude this is a sound and well thought-out budget. Yet our work never ends," Brown said at a news conference. "We have to continue to work in a very prudent and careful way. We have to find more resources for our health care and also for our roads and bridges."

Brown also announced he is calling two special sessions to address how California funds roads, highways and other infrastructure and Medi-Cal, the state's health insurance program for the poor. He said he did not have a timeline for the special sessions.

The total spending is far closer to Brown's proposal in May for a $115 billion budget than the budget proposed by the Democratically controlled Legislature, which passed a $117.5 billion spending plan a day earlier.

Democrats had sought to restore spending on a host of social welfare programs that were cut during the recession, calling for $749 million in additional spending. But Assembly Speaker Toni Atkins, D-San Diego, and Senate President Pro Tem Kevin de Leon, D-Los Angeles, called the budget deal a win for social services.

"This budget helps reverse the damage done to many working families by cuts made during the great recession," de Leon said.

The budget plan includes:

— $14.3 billion for kindergarten through 12th grade schools and community colleges.

— $380 million for a new earned income tax credit to help the working poor.

— $1 billion to deferred payments owed to schools and $765 million in debt owed to local governments.

Brown has cautioned about overspending as the state rebounds from the economic recovery, forecasting that the state could fall short of expected tax revenues.

Lawmakers will schedule a vote on the new spending plan so it can be adopted before the start of the fiscal year on July 1.