Budget Analyses Released by LAO and Legislature for 2022-23
Yesterday, California’s Legislative Analyst’s Office (LAO) issued their summary of the Governor’s 2022-23 budget that is released to assist the Legislature as they begin their budget deliberations. In their analysis, the LAO noted the following top issues about next year’s proposed budget:
- They believe the budget’s multiyear revenue projections are reasonable, but the Governor’s new spending proposals exceed the state’s estimates of the budget’s capacity;
- The Administration is urged to strongly consider building more general purpose reserves;
- Consideration of the State Appropriations Limit (SAL or Gann Limit) remains an important concern and will constrain the Legislature’s choices during the upcoming budget process;
- The Legislature should ensure the success of recent initiatives before committing to additional funding or creating additional new programs;
- Encourages the Legislature to consider longer-term COVID-19 planning for potential program flexibilities or funding that may be necessary as COVID-19 remains a continuing public health and economic challenge in the future.
Earlier this week, the Senate Budget and Fiscal Review Committee released their overview of the Governor’s proposed 2022-23 budget and the Assembly Budget Committee also released their budget highlights document.