Commentary
Upon arriving in California in 1987 to cover state politics, one of the pleasant surprises I encountered was the Legislative Analyst’s Office. Their commitment to nonpartisan analysis and use of objective data has been a valuable resource, even as the state’s political landscape has shifted. Despite the dominance of the Democratic party, the LAO has maintained its reputation for providing unbiased insights.
While I have disagreed with their calls for tax increases to address budget deficits, I appreciate their dedication to accuracy in their analyses. Their recent report, “The 2024‑25 Budget: Multiyear Budget Outlook,” projects ongoing deficits through fiscal year 2027-28, beyond Governor Gavin Newsom’s term. This projection highlights a significant shift from massive surpluses in the first half of his term to persistent deficits in the second half.
Their comparison of estimates with the administration’s forecasts reveals differences in General Fund spending, particularly in Health and Human Services programs. The LAO’s more conservative spending estimates underscore the importance of prudent fiscal management.
It is essential to heed the LAO’s insights and prepare for potential challenges ahead. By maintaining a realistic perspective and considering all variables, California can navigate its financial landscape more effectively.
Unfortunately, the opportunity slipped away.
When it boils down to it, creating the budget for this year feels like aiming at a moving target.
The opinions expressed in this article belong to the author and may not align with those of The Epoch Times.
