Will California's Budget Surplus Lead to Increased Spending?

Gov. Jerry Brown is probably feeling pretty good this week. He inherited a huge budget deficit five years ago, and this week he looks like a turnaround artist. The governor revealed that since January, California has taken in $6.7 billion more than was projected in January. Most of that extra cash will go to schools and community colleges as required by law. But UC students get a tuition freeze under the governor's plan and low income folks would get a tax break to put some extra cash in their pockets. It is a very good news budget -- all of it driven by a strong economy. How strong? We put that question to Christopher Thornberg, co-founder of Beacon Economics.