California's finances improving faster than expected
Legislature's advisors report higher-than-expected revenue could pump more than $4 billion in unanticipated funds into schools and community colleges starting next summer.
By Chris Megerian
November 20, 2013, 8:32 p.m.
"SACRAMENTO â California's finances are improving faster than expected and schools could receive billions in extra funds next year, according to the Legislature's budget advisors.
"The state's budgetary condition is stronger than at any point in the past decade," a report released Wednesday says.
"Higher-than-expected revenue, driven by the economic recovery and stock market gains, could pump more than $4 billion in unanticipated funds into schools and community colleges starting next summer, the report says.
"In addition, the analysts say, the state is on track for multibillion-dollar surpluses over the next several years, a potential cushion against the expiration of Gov. Jerry Brown's temporary tax hikes in 2018.
"The latest figures probably will rekindle the debate over spending in the Legislature; the report acknowledges "there is pent-up demand" for restoring social services cut during the recession. But the strong forecast does not mean California's financial problems are over.
"Recent estimates show that accounts dedicated to teacher pensions and retiree healthcare for public employees are underfunded by $135 billion. And the analysts cautioned that their projections depend on continued stock market gains, stability in a hyper-partisan Congress and the absence of a new recession or large spending increases.
"But the routine deficits that plagued California every year, forcing lawmakers to scramble for cuts and short-term fixes, are "no more," according to the report."
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