California reports budget surplus

After more than a decade of financial strife, teacher cutbacks, employees paid with IOUs and the recall of one governor, California Governor Jerry Brown unveiled the state's latest finances. The surprise for many: A budget surplus of about $851 million.

The state has seen tax revenue rise over the past few years, while spending on many programs was reduced. It expects $98.5 billion in income, and spnding of $97.7 billion.

At a news conference in Sacramento, Brown proposed modest new funding for education and healthcare that would increase overall spending by about 5 percent. However, he warned against the impusle to increase spending too quickly.

"I am determined to avoid the fiscal mess that the last few governors had to deal with," he told reporters. Brown expects the state to have balanced budgets for at least the next four years.

More at Yahoo! News.