A fiscal boon for California

last updated 8 January 2015

After years of budget crisis, California is set to finish the fiscal year with a surplus of billions of dollars, according to officials. The impressive showing comes largely as a result of Gov. Jerry Brown’s recent tax hikes, approved by voters in November. According to state government figures, business taxes are around $200 million ahead of projections, and personal income tax payments are $4.5 billion ahead. Brown will reveal how he intends to spend the unexpected surplus later this month, but state law may require much of the money to go to schools and community colleges. Anything left over will be used to pay down the state’s debt of almost $28 billion.