SAN FRANCISCO Jan 14 California's spending and
revenue are "roughly in balance," the state's budget watchdog
said on Monday in a report reviewing the budget plan which
Governor Jerry Brown's state unveiled last week.
The Democratic governor on Thursday delivered some rare good
news in his spending plan for the state's fiscal year beginning
in July, saying California's budget deficit is gone after years
of financial troubles, which allows for increased spending on
education and healthcare.
The report by the Legislative Analyst's office also struck
an optimistic tone.
"Over the past several years, each January Governor's budget
has included billions of dollars in proposed solutions
expenditure reductions, revenue increases, borrowing and other
actions - in order to close budget shortfalls," the report said.
"Now, however, the state has reached a point where its
underlying expenditures and revenues are roughly in balance."
With the exception of education funding, the remainder of
state General Fund spending reflects a baseline budget," the
report added. "This means that state-supported program and
service levels established in 2012-13 generally continue 'as is'
in 2013-14. Under our and the administration's fiscal forecasts,
this situation would likely continue into 2014-15."