The governor’s new plan would spend almost 116 billion dollars, a boost of four billion from January due to unanticipated revenue growth.
Schwarzenegger proposes to use the revenue to increase spending on transportation projects, local governments, and schools. The governor wants to give teachers an incentive to take on schools with the most difficult working conditions.
"I’m proposing recognition pay, for excellent school principals and teachers who serve where they’re needed most which are our lowest performing schools."
Schwarzenegger says even with expanding revenues, the state still faces an ongoing four billion dollar a year structural deficit. Education groups say schools are owed at least another two billion dollars. Democrats in the legislature say they’ll propose their own budget alternative next week, which will include more money for schools.