Governor Jerry Brown’s new budget proposal is getting a generally strong review from California’s non-partisan fiscal watchdog – but his revenue projections are not.
Legislative Analyst Mac Taylor says Brown’s spending plan would at long last close California’s festering budget deficit. “The governor – whether you have the revenues that are approved by the people in November or his backup trigger plans – would achieve additional savings that pretty much close to brings us into balance, not only for this year but for each future year,” said Taylor.
But he calls the revenue projections from the governor’s Department of Finance too optimistic – by about four billion dollars. He says that would require lots of improvement in both the capital and housing markets.
“We’re not forecasting that in our underlying economic forecast and we’re not really seeing Finance forecasting that either,” said Taylor. “So we’re just not sure how they get to their numbers.”
Taylor recommends the legislature wait at least a month for updated revenue totals before moving forward with the budget. The governor’s Finance Department is standing by its revenue projections.