LAO Releases Report on California’s Recovery from Great Recession
The California Legislative Analyst’s Office (LAO) this week released a visual guide that tells the story of the California budget over the past ten years. The report examines the timeline of the events from the December 2008 proposed budget projection of a $42 billion deficit that quickly grew, resulting in California being called “ungovernable,” “a wreck,” and a “failed state,” to present. Through a year-by-year assessment, the report details actions taken by the Legislature and Governor to implement structural changes to the budget, address outstanding debts, and increase state reserves. While a $15.9 billion reserve level is expected at the year-end of the 2018-19 budget, the LAO indicates that volatile revenue sources and other budgetary challenges loom as the state looks forward to future budget years. The full LAO visual guide is available here.