An annual look ahead at California’s finances predicts a growing economy and budget surpluses.
The state’s nonpartisan Legislative Analyst’s Office released its Fiscal Outlook for 2016-2017 Wednesday.
"The budget outlook is decidedly positive," Legislative Analyst Mac Taylor said. "We have revenues growing slightly greater than spending. That means operating surplus grows, the reserve levels grow, and you’re still in a very good situation."
The report projects $3.5 billion more revenue for the current budget than lawmakers expected and more rainy day reserves than the state has had in decades. At current spending levels, the general fund would operate at a $2 billion surplus in the next budget.
With the bright news, state lawmakers have already called for new spending. But the report warns if the economy starts to contract in coming years, they may just as quickly need to cut back again.
