LAO Report: The 2013-14 Budget - CALIFORNIA’S FISCAL OUTLOOK
…your rose-colored-glasses are located in a compartment under the center armrest.
FROM THE 11/20 CCSA EMAIL TO THEIR MEMBERS:
The Legislative Analyst’s Office (LAO) released its annual Fiscal Outlook last week, updating its projections on the state’s fiscal situation. With the passage of Propositions 30 and 39, the LAO reports that “the budget situation has improved sharply” and that we can expect increases to Proposition 98 education funding in both the current year and in 2013-14, with steady increases of about $3 billion per year thereafter.The LAO suggests that this new funding could be used to begin paying off maintenance factor obligations and deferrals, provide Cost of Living Adjustments and equalize funding. As a reminder, the Governor will issue his budget plan for 2013-14 in mid-January 2013.
The LAO Report: EXECUTIVE SUMMARY
COMPLETE REPORT FOLLOWS
Budget Situation Has Improved Sharply.The state’s economic recovery, prior budget cuts, and the additional, temporary taxes provided by Proposition 30 have combined to bring California to a promising moment: the possible end of a decade of acute state budget challenges.
Our economic and budgetary forecast indicates that California’s leaders face a dramaticallysmaller budget problem in 2013-14 compared to recent years. Furthermore, assuming steadyeconomic growth and restraint in augmenting current program funding