Gov. Brown stated in his 25-minute speech that California has "confounded our critics."
BROWN: "We have wrought in just two years a solid and enduring budget and by God, we will preserve and keep it that way for years to come." (applause)
Brown included a warning for Democrats who might be eager to spend more on social programs now that the state no longer has a deficit.
BROWN: "It's cruel to lead people on by expanding good programs only to cut them- cut them back when the funding disappears. This isn't progress. It's not even progressive. It's an illusion. The stop and go, boom and bust servers no one. We are not going back there."
Brown also called for more state resources for students who need them most, touted a plan to build tunnels in the Delta to move water from north to south, and confirmed a trade mission to China.