LAO releases overview of Governor's budget plan
LAO calculates that Governor solved for a $58 billion potential budget deficit
The Legislative Analyst’s Office (LAO) released its annual overview of the Governor’s January 10 budget proposal, calculating that the Governor’s plan addressed a $58 billion potential California budget deficit for 2024. The Governor’s revenue estimates are roughly $15 billion higher than LAO’s over the three-year “budget window” (22-23 through 24-25), LAO says, terming the Governor’s estimate “plausible, but optimistic.” The LAO discusses how the Governor’s Proposition 98 plan is treated in deficit calculations, stating that the Governor’s budget proposal “lacks a plan for implementing proposed reductions to schools and community colleges.” The Legislature likely will face more difficult choices next year, the LAO report says.
”To mitigate these challenges, we recommend the Legislature develop this year’s budget with a focus on future years,” the report says. The LAO overview is here.
For links to other materials related to the Governor’s proposal, go to my earlier post here.