Just as Murray said, Tami, your growth is fine. It's not the growth that's browned - it's its wrapping paper. The growth looks fine. You can peel that browned skin off if you choose, just do so carefully, making sure not to tear away anything that really wants to stick.
If you're prone to mealies or other burrowing critters, then definitely keep it peeled back. They love to form small cities under the cover of wrappings like that.
Otherwise your growth looks wonderfully healthy! Remember that some Catts will set spikes quickly on new sheaths. Others will take a rest for 3-4 months. Then just as you give up hope, the spike pops out! Don't give up on regular watering and fertilizing. That will ensure healthy buds and blooms.
McJulie