The Legislative Analyst’s Office has just published the following report:
The 2019-20 Budget: May Revision Multiyear Budget Outlook
Each year, our office releases a series of analyses on the Governor’s May Revision proposals. In this report, we assess how the Governor’s May Revision proposals affect the multi-year condition of the state budget.
This report finds that the multiyear situation is positive—assuming the economy continues to grow, the state budget has the capacity to pay for the Governor’s May Revision proposals and still has an operating surplus. We also discuss the Governor’s relatively new approach to preparing the budget for the future—an approach that emphasizes paying down debt rather than building reserves, as recent budgets have done. While we agree with the Governor that using a portion of the state’s surplus to address some of the state’s outstanding debt is prudent, we think the Legislature’s plan for responding to a recession—first and foremost—should focus on building more reserves.
This report is available using the following link: https://lao.ca.gov/Publications/Report/4050?utm_source=laowww&utm_medium=email&utm_campaign=4050
This article was released by the California Legislative Analyst’s Office.