California agency predicts $7 billion state budget surplus
SACRAMENTO, Calif. (AP) California is expected to have a $7 billion budget surplus next year, but lawmakers were urged Wednesday not to spend all of it because a sizable chunk depends on an upcoming decision by the Trump administration as it feuds with state Democratic leaders.
A report from the bipartisan Legislative Analysts Office says Californias savings account could grow to more than $18 billion by the end of 2021.
Thats enough to make it through a typical recession, although the state would likely have to slash public education spending in the event of a downturn, the report said.
However, nearly $2 billion of the initial $7 billion projected surplus depends on whether the Trump administration lets California tax organizations that manage the states Medicaid plans.
Read more: https://www.news-journal.com/ap/business/california-agency-predicts-billion-state-budget-surplus/article_b0447f5f-3a10-597c-bf9a-b1f304b7ed46.html
(Longview News-Journal)