California will collect more than $3 billion in additional state revenue, the state's nonpartisan legislative analyst said Friday, setting the stage for a Capitol fight among Democrats over spending.

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The program may be dead, but the spending isn't over for the state's defunct payroll system overhaul.
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With California income tax revenue running about $4.5 billion ahead of expectations through April, Gov. Jerry Brown finds himself today in an unusual position: Releasing a revised budget proposal highlighting better numbers, not worse.
Jerry Brown
Assembly Speaker John A. Pérez is proposing a new state spending restriction that would set aside money from capital gains taxes in good years to help the state through economic downturns.

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