The non-partisan Analyst predicts “several billion dollars” in additional revenues at the May Revision. This surplus combined with the $5 billion surplus identified by the Governor in his January proposal means $8 to $10 billion in surplus revenues likely will be on the table. However, a significant portion of the recent revenue surge probably results from capital gains-related PIT caused by large increases in stock prices throughout 2013. As such, permanent commitments of these funds will set the stage for the next budget crisis in California. For the full review by the non-partisan Legislative Analyst's Office go to:
http://www.lao.ca.gov/Publications/Detail/2819
Tom Sheehy
January 2014
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