By Jim Sanders
Published: Saturday, May. 25, 2013 – 12:00 am | Page 3A

Both houses of the Democratic-controlled Legislature worked to craft budgets Friday that are about $3.2 billion higher than the one proposed by Gov. Jerry Brown.

The development sets up a clash with the governor from their own party.

“We think that could threaten the significant fiscal progress we’ve made that has finally brought the budget into balance,” said H.D. Palmer, state Finance Department spokesman.

The windfall was projected by Legislative Analyst Mac Taylor based largely on sharp recent increases in the stock market and differences with the Governor’s Office in predicting near-term economic prospects.

The Senate Budget Committee voted along party lines Friday to accept Taylor’s rosier forecast. The Assembly released a budget outline assuming the same $3.2 billion hike.

The Assembly and Senate are scheduled to create a conference committee next week to hammer out a joint budget proposal.

Because Democrats control a supermajority in each house, they can pass a budget without GOP support.

Leaders of both houses want to use much of the additional $3.2 billion to boost education spending, increase reserves and pay down debt, but each house has its own short list of public programs to bolster as well.

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