Good News and Bad News
The Legislative Analyst’s Office (LAO) has issued a report on the state budget outlook. The good news is above. Adding in the effects of Prop 30 (and 39), in the out-years the state begins to run surpluses as shown by the rising positive bars on the right side of the chart above. Lots of uncertainty, of course, about what might happen to the underlying economy. It is likely that the governor will be making statements, given the report, about the need for caution. And there is bad news also seen on the chart above on the left side or the…