Analyst: California budget ‘in remarkably good shape’

SACRAMENTO, Calif. (AP) — California’s legislative analyst says the state’s budget is in remarkably good shape as fiscally conservative Gov. Jerry Brown prepares to hand off to governor-elect Gavin Newsom.

The analyst’s budget forecast released Wednesday says the new governor and Legislature will have nearly $15 billion to allocate next year.

But it warns that the state might face budget cuts during the inevitable next recession if lawmakers don’t commit that entire surplus to California’s rainy day funds.

The analyst’s longer-term outlook also is rosy, projecting surpluses of more than $4 billion annually.

San Francisco Democratic Assemblyman Phil Ting, the Assembly’s budget chairman, says lawmakers need to be prudent but still spend some of the money in areas that will improve people’s lives.

Categories: California News