Legislature’s budget analysts deliver financial outlook for 2021-22
Legislature’s budget analysts deliver financial outlook for 2021-22, recommending the State:
Consider revenue increases and cuts to address a pending operating budget deficit.
Authorize one-time funding for health and economic recovery programs.
Increase budget reserves.
“Although the state economy abruptly ground to a halt in the spring with the emergence of coronavirus disease 2019, it has experienced a quicker rebound than expected. While negative economic consequences of the pandemic have been severe, they do not appear to have been as catastrophic from a fiscal standpoint as the budget anticipated. But, the recovery has been uneven. Many low‑income Californians remain out of work, while most high‑income workers have been spared.”
See the LAO Fiscal Outlook report here: https://lao.ca.gov/