The announcement, which the party was expected to make to members today, comes as the party prepares for its biannual convention in Anaheim this weekend.
Brulte, a former state Senate Republican leader, was elected chairman of the party earlier this year in an effort to revive its brand in California. The party holds no statewide office and has seen voter registration fall statewide below 30 percent.
When Brulte took over the party, he called his job "more like a bankruptcy workout." At the time he put the figure at as much as $800,000.
Brulte initially underestimated the amount the party owed. In addition to paying off its debt, he said the party has also re-opened an office in Sacramento.
PHOTO: Former state Sen. Jim Brulte speaks with reporters after being elected as California Republican Party chairman during the CRP convention held in Sacramento on March 3, 2013. Associated Press/Rich Pedroncelli