California state leaders said Friday that they've reached a budget deal that included hundreds of millions of dollars more for combating homelessness and for the state's public universities than Gov. Jerry Brown initially proposed.
The deal comes after a month of negotiations and one week before the constitutional deadline for lawmakers to approve a spending plan.
Brown, who inherited a $27 billion shortfall when he came into office in 2011, has worked to put the state back on solid fiscal footing, including by building its budget reserves.
But in recent years, as the economy has recovered and the state coffers have swelled with cash, Democratic lawmakers have pushed Brown to reinvest in programs that were slashed during the recession.
In May, Brown's office announced a projected $8.8 billion surplus for the fiscal year that begins July 1. He proposed using about half that money for one-time expenditures, including improving levees and other flood control infrastructure; and giving state universities, facilities and courts about $2 billion to tackle years of deferred maintenance to their facilities.