Gov. Jerry Brown released a revised state budget Thursday morning that plans for tough economic times, while maintaining spending for core programs such as education.

He cited a "modestly improved fiscal outlook" since January that will allow for $1.5 billion more in spending next year.

"The challenge of sound government is to manage," Brown said. "It is very cruel to promise people a spending program, and then pull the rug out from under them."

Here are some of the highlights:

  • A more than 4 percent increase in public education funding through the 2017-18 school year.

  • The first $2.8 billion in funding for SB 1, which will increase the gas tax by 12 cents a gallon starting Nov. 1. The budget also calls for enhanced Caltrans oversight in relation to the new law.

At Thursday's presser, Brown also pointed to a chart over how much money the state could lose in federal funds because of the GOP-led American Health Care Act.

The release of Brown's budget plan kicks off a month of negotiations with the Legislature.

Senate President Pro Tem Kevin de Leon of Los Angeles calls the governor's new plan an improvement from his January budget proposal.

While Republicans, such as Assembly Minority Leader Chad Mayes, says Brown's budget improperly diverts tax increases intended to fund health and dental care into general state spending.