We are pleased that Governor Brown’s budget reflects a fair measure of fiscal restraint and austerity. His desire for no new taxes, protecting Proposition 13, continuing to pay down the ‘wall of debt’ and establishing a prudent reserve is commendable.

However, it is what the Governor did not say that concerns us. CalSTRS huge unfunded liability continues to harm California’s financial health and a massive shortfall in the unemployment insurance fund will stunt job growth.

The proposal to pay for high speed rail using cap and trade revenue may be unconstitutional.

Finally, with respect to the spending limit proposal, the devil is in the details. While we eagerly await any movement on a constitutional amendment to improve and expand the existing rainy day fund, questions remain as to how effectively this will smooth the revenue volatility that has plagued California for decades. We look forward to seeing these issues addressed in the months to come.