State fiscal picture looking up

By Michael Shaw

Capitol Update, Feb. 20, 2015 Share this on FacebookTweet thisEmail this to a friend

The latest report from the non-partisan Legislative Analyst’s Office (LAO) suggests state revenues through June 2015 could be $1 to $2 billion above the Governor’s 2014-15 Budget passed last year. According to the LAO, the state’s big three revenues -- income, sales, and corporate tax collections -- were also about $512 million above Governor Brown’s estimates released last month.

Overall, the LAO believes that the unexpected revenues are primarily related to growth in sales tax revenue that creates some concern about future revenue stability. California’s K-14 school funding framework, Proposition 98, directs the bulk of any additional tax revenue to benefit schools and community colleges. The remaining funds will likely go to paying off California’s wall of debt, per Governor Brown's priorities.

However, the handful of legislators who were in office during the darker budget days of several years ago are looking to restore many of the cuts in services and have eyes on the growing revenue picture.

You can see more info here at LAO. 

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