Jerry Brown's budget probably understates California revenue, analyst say

[TexasTowelie]

Gov. Jerry Brown’s proposed budget for the year beginning July 1 probably understates California income tax collections by billions of dollars, the Legislature’s non-partisan fiscal analyst said in a report Friday.

The spending plan released Tuesday projected that the state would face a nearly $2 billion shortfall without changes. Some costs have increased, but the main reason for the gap is the administration’s conclusion that revenue from the state’s three main taxes will be $3.2 billion less through June 2018 than was assumed when lawmakers approved the current budget last June.

“The downturn is inevitable,” Brown told reporters Tuesday.

The analyst’s office, though, said Friday there is little sign that such a downturn is imminent. The 3.3 percent growth in personal income tax collections projected in Brown’s budget for 2017-18 is well below the norm for a typical growth year, the LAO said.

Read more here: http://www.sacbee.com/news/politics-government/capitol-alert/article126534299.html

[font color=330099]Does anyone have any ideas why Gov. Brown is lowballing the revenue forecast?[/font]

[Phoenix61]

1. Budgeting for loss of all federal aid

when he tells Trump to FO. Excellent game plan.

[Auggie]

2. +1 ... I'm cool with taking it easy for a few years.

[BadgerMom]

3. Marijuana revenue

I wonder if the legalization of pot will add to state coffers. It usually does, correct?

[TexasTowelie]

4. Yes it does.

If Colorado is any type of guide, it's possible that California could see about $1 billion in revenue from marijuana taxes--both direct and indirect since the bakeries will be busier with people that have the munchies.