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CA Legislative Analyst Projects Smaller Deficit for the State


SACRAMENTO, Calif. (AP) — The nonpartisan legislative analyst says California is facing a much smaller deficit of $1.9 billion through the end of the next fiscal year and could even see surpluses over the next few years. The Legislative Analyst's Office on Wednesday released a positive but cautious forecast for the state, a week after Californians approved Gov. Jerry Brown's sales and income tax initiative. Analyst Mac Taylor says California is at a "promising moment" that could mark the end of a decade of budget deficits. He projects a much smaller deficit of $1.9 billion for the 2013 fiscal year, compared to the $15.7 billion deficit lawmakers faced earlier this year. The analyst's report projects a surplus starting in 2014, thanks partly to Brown's tax initiative, the state's economic recovery and previous budget cuts.

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