By Dan Walters
Published: Tuesday, May. 28, 2013 – 5:30 pm
Last Modified: Wednesday, May. 29, 2013 – 7:33 am
Two analyses of the pending California state budget frame a looming conflict with just days remaining before the June 15 deadline for passage.
The first came from Moody’s, a major credit rating organization, after the Legislature’s budget analyst, Mac Taylor, suggested that the state may have $3.2 billion more to spend in the 2013-14 fiscal year than Gov. Jerry Brown had forecast.
“In prior years, the state has frequently used overly optimistic revenue projections in its budget, resulting in mid-year budgetary shortfalls that needed to be solved using triggered spending cuts or mid-year legislated spending cuts,” Moody’s said.
“Using the governor’s fairly conservative revenue forecast would increase the likelihood of meeting those forecasts and maintaining the $1 billion reserve factored into the budget proposal. The LAO’s higher revenue forecast, if used by the legislature in its budgetary decisions, adds more risk that the forecasts will not be met.”
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