SACRAMENTO - (INT) - A new forecast from the Legislative Analyst's Office shows a vastly improved fiscal picture for California.

Earlier this year, the Legislature and the Governor agreed to a restrained state budget for 2013-14. The LAO's forecast of state tax revenue collections has increased since last year. Accordingly, the LAO found that the state budget situation is even more promising than was projected one year ago.

The outlook issued Wednesday assumes continuing economic growth and slow, but steady, growth in stock prices. But, an economic downturn within the next few years could quickly result in a return to operating deficits, warned the non-partisan LAO.

The California Budget Project noted that many Californians are still reeling from the impact of the Great Recession.
CBP Executive Director Chris Hoene said "State policymakers should be careful about putting away too much for a rainy day when, for many Californians, it's raining now. Policymakers should strive to increase investment in people and communities."

Story Date: November 24, 2013