California Budget Deficit Shrinks; May See Surplus By 2014

SACRAMENTO (CBS/AP) — The nonpartisan legislative analyst says California is facing a much smaller deficit of $1.9 billion through the end of the next fiscal year and could even see surpluses over the next few years.

The Legislative Analyst’s Office on Wednesday released a positive but cautious forecast for the state, a week after Californians approved Gov. Jerry Brown’s sales and income tax initiative.

Analyst Mac Taylor says California is at a “promising moment” that could mark the end of a decade of budget deficits.

He projects a much smaller deficit of $1.9 billion for the 2013 fiscal year, compared to the $15.7 billion deficit lawmakers faced earlier this year.

The analyst’s report projects a surplus starting in 2014, thanks partly to Brown’s tax initiative, the state’s economic recovery and previous budget cuts.

 

 

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

 

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