Sacramento is abuzz with a new, rosy budget projections from the Legislative Analyst’s Office and Department of Finance.
However, as CALMatters columnist Dan Walters notes, things aren’t as pretty when you sweep aside the near future:
[Gov. Jerry] Brown will likely give a little on spending, insist on fattening reserves a little more and claim that he’s tamed the budget crisis he faced upon returning to the governorship in 2011 after a 28-year absence.
However, he hasn’t. In fact, during his second stint as governor, Brown, lawmakers and voters have made the state’s longer-term situation potentially even worse. . .
Some of the icebergs ahead that could worsen in a California recession? Walters points to the Golden State’s ballooning public employee pensions and Governor Brown’s overreliance on his “rainy-day fund” rather than restructuring California’s tax system through tax reform.